The year 2022 will be a year to optimize learning from 2021. With new health threats increasing in the West and the East, this is especially true for the medical technology and consumables industry. Although the Indian medical device industry is at an early stage of its development, with parallels to the emergence of the pharmaceutical industry in the early 2000s, the Indian medical device market is seeing share gain trends of market by powerful national players in the domestic market. monitoring of market share growth in export markets.
This is supported by the Frost & Sullivan report which indicates that the medical device market is growing faster than the healthcare market, with a CAGR of 9.2% between 2021 and 2025. The global surgical consumables market is estimated at 15 $ 03 billion in 2020 and is expected to grow at a CAGR of 4.7% (2021-2025), reaching $ 19.51 billion by 2025. Market growth is driven by the volume of surgical procedures , which is driven by an aging population, the increased incidence of lifestyle-related diseases, and improved access to health care in developing markets. As a result, surgery volumes are growing by 5.1% globally and over 7.2% in emerging geographies such as India and China. Likewise, the report of the Engineering Export Promotion Council of India shows that consumables and disposables are the most important export category, accounting for 47% of exports.
Having learned rapidly from years past, the industry has increased the quality and volume of test kits, diagnostics, ventilators, PPE, and antimicrobial surgical consumables such as gloves and masks to meet national and global demands. Readiness planning has helped the industry meet supply chain and inventory management requirements to meet market demands. Companies will continue to add digital solutions such as robust management information systems to support timely business process innovations that were critical to decision making to ensure products reach designated locations. The industry continues to invest in research and development and national and international collaborations to develop solutions that meet today’s market needs.
Supporting the industry, the government has put in place various initiatives to stimulate the growth of this sector. Some of the government initiatives to promote domestic manufacturing include:
- Production Incentive Program (PLI) of up to INR 3,420 crores (US $ 459.30 million) for medical device manufacturers who have created a plan to establish a dedicated manufacturing center across the country for the production of medical devices, with a total investment of US $ 468.78 million between FY21-FY28.
- The Department of Pharmaceuticals issued a notice in 2021 on the government procurement order, incorporating 19 medical devices, which is expected to reduce import bills by $ 538.62 million. Additionally, on March 25, 2021, the government issued a notice outlining the eligibility criteria favoring domestic manufacturers for government tenders.
- The National Council for the Promotion of Medical Devices was created in 2020 to promote the local manufacture of high-end medical devices and attract investment in the sector. The main function of the council will be to suggest policy interventions to promote local manufacturing according to global standards, which in turn will reduce dependence on imports from other countries and also promote income generation from of exports.
- Some states like Andhra Pradesh have put in place policies that encourage investments in the MedTech sector. They created the Andhra Pradesh MedTech Zone (APMTZ), which could house all capital intensive science facilities, laboratories and more. These will be leased to low cost Vishakhapatnam makers for a fixed term.
The need for high-end medical equipment manufactured by multinational companies at lower prices with equal quality standards continues to grow nationally and globally. Some Indian companies have decided to take up this challenge and increase their quality and volume thanks to the support of the “Make in India” campaign. The Quality Council of India and the Association of Indian Medical Device Manufacturers have introduced new elements to the Indian Medical Device Certification Program (ICMED), launched in 2016 to meet global quality requirements for medical devices. In addition, the ICMED 13485 PLUS program would provide the institutional mechanism to ensure product quality and safety. These measures will aim to help sourcing agencies address the challenges associated with the threat of counterfeit products and false certification.
The government has invested in collaborative programs such as Stanford India’s biodesign programs, the School of International Biodesign and others through the biotechnology department to spur innovation in medical technologies and develop the next generation of technology. ‘medical technology entrepreneurs in the country in leading institutions such as AIIMS and IIT Delhi, with Biotech Consortium India as technical-legal management partner.
There is increased worldwide interest in the capabilities of Indian MedTech companies by venture capitalists. Therefore, it is likely to be said that funding will be available for scalable solutions that meet international quality standards at all stages of development. With lessons from 2020 and a year to test innovation and quality standards, the MedTech industry is poised to achieve the goal of the “Make in India” initiative in 2022.
The opinions expressed above are those of the author.
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