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Gujarat – A Pioneer & No 1 Manufacturing Hub For Life Science Industry In India

Imports are significantly higher in high end (Complexity and innovation) medical devices

Source : recommendations of the Task Force on the medical devices sector in India - 2015
Note : Data for recent Years not available

Contribution of the Gujarat pharma as well as Medical device companies for the benefit of Corona Patients

• During the early days of COVID-19, there were few manufacturers having facility to manufacturing PPE kits, surgical masks, N-95 masks but due to extensive and collaborative approach with Industry, today there are more number of Manufacturers are Manufacturing of PPE kits surgical mask N-95 mask in Gujarat.

• Hydroxycholoquine and Azithromycine were found to be effective in Covid-19 treatment. So considering the requirement global and domestic requirements there were product issued in order to achieve the requirement.

• Moreover, FDCA, Gujarat encouraged manufacture to procure and obtain manufacturing license to manufacturing hand sanitizers and Medical oxygen during the lockdown period of 80 days more than 2400 product licenses to manufacturing hand sanitizer were issued to firms.

• Recently, Remdesivir was found to be effective in COVID-19 and market authorization is with US based company M/s. Giled Life Science, The Cipla Ltd. India has tied up to avail Remdisiver to indian patients. Hence issued license to Cipla Ltd. To manufacturing this drug in Gujarat based pharma company M/s. BDR Pharmaceuticals, Vadodara within short span of time.

Contributing Factors for the growth of medical device industry

• Gujarat received an investment of worth US$ 3.4 billion during the year 2016 17 in pharma sector accounting 16% of countries total.

• Gujarat total output in pharma sector was US$ 10.5 billion during the year 2016 17 accounting 31% as compare to rest of India which accounts US$ 23.6 billion

• Gujarat has over 3,300 pharmaceuticals manufacturing units and contributes 33% to India’s pharma sector’s turnover and around 28% to India’s Pharma export

• About 75,000 people are employed in the pharmaceutical sector in the State.

Institutional support and eco-system available to the pharmaceutical and Medical device industry in Gujarat

• 38% (564km) of the1500 km length of DFC will pass through Gujarat which includes 62% of total area of Gujarat (18 out of 33 districts within the influence area).

• Gujarat, with a coastline of 1600km, is well connected to all major air and port-based trade routes across the world.

• Gujarat is the one of the power surplus states in the country attracting investments from the industries and making it a preferred investment destination in the country.

• Gujarat acts as a gateway to the northern and central markets of India; thereby providing immense business opportunities.

• Moreover, flagship events of the state government like Vibrant Gujarat, India Pharma 2020 help to encourage major players to invest in Gujarat and provided platform to have one to one meetings with different stakeholders.

• A Medical Device Park will shortly come up in the Saurashtra region.

Robust Infrastructure

Limitation and Challenges faced by Medical device industry in Gujarat

• Indian regulations on medical devices- multiple government departments wanting to regulate the industry

• Uncertainty on the policy of price capping of devices from landed cost, of stents and knee implants, without factoring for incremental innovation in these segments

• Tax increase after the introduction of the Health Cess Ad valorem, where more than 80% of the critical mass of medical devices being imported that would impact patients.

• High end devices like CT scan, x-ray machines are being included in the purview of medical devices in recent amendments.

Future of medical device industry in India and Gujarat

• Currently Gujarat is being a leading state for the manufacturing of medical devices in the country as compared to other states.

• Quality of medical devices made by Gujarat based manufacturers has been recognised globally. Gujarat is a eading state in country to manufacture Cardiac Stents, Intra ocular lenses etc.

• Still Gujarat based companies are lacking facility to manufacture high end medical devices and amongst 80% of total medical devices are being imported.

• Appropriate actions to support the growth of medical devices in the state will also lead to manufacturing of high end medical devices.