Revolutionising Indian Healthcare Sector Through
New Medical Device Policy 2023
Mr. Jatin Mahajan
Managing Director, J Mitra & Company, Secretary,
Association Of Diagnostics Manufacturers Of India |
The Medical devices segment
is an integral part of the Indian healthcare industry.
This sunrise sector has demonstrated sustained growth in
this decade. This industry has drawn significant
investments recently, and new MedTech startups are being
incorporated with encouraging frequency. The industry has
a high import dependency, with 80 per cent of medical
devices imported into the country.
The Indian Government
notified the New Medical Devices Policy 2023 (NMDP2023) in
April 2023. This forward-looking policy outlines an
extensive range of measures to foster the growth and
advancement of India’s healthcare industry, explicitly
emphasizing the medical devices sector. The NMDP outlines
a clear vision to increase India’s share in the global
medical device market from the current ~1.5 per cent to
more than 10 per cent within the next couple of decades.
Furthermore, it aims to grow the sector from USD ~11 bn to
USD 50 bn by 2030.
This is a pivotal policy. The
NMDP2023 aims to foster a competitive domestic industry,
reduce India’s import dependency, and make quality
healthcare affordable and accessible to the Indian
populace. The policy’s main objective is commendable, but
does its framework sufficiently propose a mechanism to
achieve this? A closer examination reveals a multitude of
possibilities. |
Noteworthy Components of the NMDP2023
One of the most prominent aspects
of the NMDP2023 centers around the creation of ‘Medical
Devices Parks’ across the nation. The policy endeavors to
establish eight such parks by 2023, offering state-of-the-art
manufacturing and testing facilities. This will address one of
the pressing concerns for domestic manufacturers – high
capital investment. The setting up of medical device parks
will reduce the cost of production by 30 per cent, making it
more lucrative for domestic manufacturing.
Further, the NMDP2023 also
tackles regulatory concerns by proposing a unique, harmonised
regulatory framework that syncs with international standards.
This is a step in the right direction as it would infuse
global confidence in Indian products and ensure product
efficacy and safety. However, the precise nature and
application of these benchmark international standards within
the context of Indian domestic regulations remain to be seen.
Promises and Potential
Challenges
While the NMDP2023 holds
substantial promise, it is pivotal to acknowledge the
potential challenges that may arise in its implementation.
Prominent among these is India’s ‘Make in India’ initiative.
Although the NMDP2023 supports the ‘Make in India’ initiative
through local production of medical devices, a careful balance
must be struck to ensure we encourage healthy competition and
foreign investment. While promoting local manufacturing, we
must ensure that India remains an attractive market for alien
medical device companies. We need to strike a balance between
fostering indigenous industry and ensuring the availability of
cutting-edge foreign innovations.
The second concern relates to the
execution of the Medical Devices Parks. Ensuring consistent
quality and the availability of advanced technology across all
these parks would be a challenging task.
The Road Ahead
The NMDP2023, though ambitious,
is a vital step towards transforming India’s medical device
industry. This reality also finds resonance in India’s Finance
Minister Nirmala Sitharaman’s quote: “NMDP2023 is our firm
step forward towards bridging the gap in the health sector…
Towards a healthier and Aatmanirbhar India”.
One underrated feature of this
policy is a dedicated Export Promotion Council, which will
push Made-in-India products, providing opportunities for MSMEs
and startups to take their products into the global market.
Streamlining regulations and focusing on human resource
development will guarantee a steady flow of new devices and
workforce to cater to our vast population.
The policy is an impressive
culmination of the GOI’s various initiatives, such as
Make-in-India to boost domestic manufacturing, Heal in India
to benefit patient cases, and Build in India to encourage
innovation and access to cutting-edge technology. There has
never been a better time to be a medical device company
in India.
While the policy brings hope and
substantial potential, its practical implementation will be a
game-changer. This includes nurturing a conducive ecosystem
that encourages innovation, research, and development in the
medical devices industry. The alignment of various
stakeholders, including innovators, manufacturers, and
regulatory bodies, will be crucial to the policy’s success.
Views expressed by Jatin Mahajan,
Member of Working Group on Policy, ASSOCHAM; Co-Chair, CII
Delhi State Sub Committee on Healthcare & Wellness, CII
Northern Region; Secretary, ASSOCIATION OF DIAGNOSTICS
MANUFACTURERS OF INDIA; Managing Director, J Mitra & Company.
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