A TECHNO-ECONOMIC NEWS MAGAZINE FOR MEDICAL PLASTICS AND PHARMACEUTICAL INDUSTRY
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Manufacturing Policy

National Medical Device Authority (NMDA)

- Recommended By Task Force To Strengthen “Make In India” Drive

The Drugs and Cosmetics (Amendment) Bill, 2015 for providing a separate chapter for regulation of the complete range of medical devices is now under legislative process.

Besides, the others issues facing the Indian medical device industry include training and capacity building programme, interaction with medical device regulators, policy to promote local manufacture of Medical devices, granting subsidies and incentives and promoting higher education relevant to medical devices industry to bring fresh talent and techniques into research and development. There does not exist a single nodal authority for medical device industry.

Recognizing this policy deficit, the Government constituted a Task Force under the chairmanship of the Secretary, Department of Pharmaceuticals (DoP) to address issues relating to the promotion of domestic production of high end medical devices and pharmaceutical manufacturing equipment in the country. The Task Force in its report released by Honourable Minister of Chemicals and Fertilizers on 08.04.2015 had made a set of recommendations for the promotion of the Medical device industry.

Objective:

The National Medical Device Policy-2015 has the objective of strengthening the Make in India drive in Medical device sector by reducing the dependence on imports and setting up a strong base for Medical devices especially those having critical implications in terms of affordability and availability for patients.

Salient Features:

  1. An autonomous body “National Medical Device Authority” (NMDA) to be created under the Department of Pharmaceuticals; which may be headed by an officer of the rank of Additional Secretary/ Joint Secretary to the Government of India.

The Authority shall have a Member Secretary of the rank of Joint Secretary/ Director; two eminent medical practitioners; two eminent medical device technologists or scientists; and Secretary General of Quality Council of India (exofficio). The Authority shall.

  1. Provide a single window mechanism to the industry with an objective of promotion of the medical device industry to make the country not only self-reliant but also a global hub of production and innovation in medical devices.

  2. Be responsible for setting up and managing, through appropriate corporate body/ SPV, Medical Devices Mega Parks of approximately 500 hectares and above, of various specialisations in the vicinity of Centres of Excellence.

  3. Create benchmarks as per international best practices and update all the stakeholders on global development.

  4. Develop knowledge networks with partners from industry.

  5. Identify and prevent creation of unnecessary and unjustified technical barriers to trade especially by new or changing technical regulations.

  6. Support and prepare indigenous businesses to face competition, access foreign markets, and find new business partners abroad.

  7. Search, collect, collate and analyze relevant data.

  8. Promote, co-ordinate and issue guidelines for the development of risk assessment methodologies and monitor, conduct and forward messages on the risks associated with medical devices to the Central Government, State Governments and other enforcement agencies.

  9. Promote networking of national and international organizations within and outside India with the aim of facilitating scientific co-operation, coordination of activities, exchange of information, implementation of joint projects and exchange of expertise.

  10. Take all such steps to ensure that the public, medical professionals and interested parties receive rapid, reliable, objective and comprehensive information through appropriate methods and means.

  11. Promote general awareness as to medical device safety and medical device standards.

  12. Undertake any other task assigned to it by the Central Government.

  1. ii The Government on the recommendations of NMDA, subject to availability of Budgetary resources, may consider all or an appropriate mix of the following incentives for both Greenfield and Brownfield units:

  1. Preference in government procurement may be considered for medical devices which are being manufactured in India with an additional preference for medical devices manufactured under MSME sector.

  2. R&D by agencies like ICMR, DBT, CSIR, DIETY & DoP should be supported/ coordinated through the single window facilitating body.

  3. Low cost funding like interest subsidy to MSME

  4. Concessional power tariff for up to 5-10 years

  5. Provide seed capital, viability gap funding and co-fund startup projects

  6. Support commercialization of innovations

  7. Provide longer term view (10 years window) for 200 % weighted tax deduction on approved expenditure on R&D as the gestation period in high in this industry.

  8. Tax/ duty structure to be designed to promote local manufacturing of quality medical devices and diagnostic equipment

  9. Minimum/ zero duty on the import of raw materials and manufacturing equipments for production of medical devices.

  10. Restrictions on import of second hand diagnostic equipment/tools

  11. Higher taxes after 5-7 years of usage for imported second hand devices

  12. Incentivize and promote exports in the medical devices sector.

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