Making the Sunrise Sector Shine: The impetus Domestic Healthcare Needs

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However, there is a need for a thriving and abundant supply of components and spares that go into medical devices. India has been lacking a robust network of complementary and essential ancillary units that could qualify as suppliers based on technological capabilities and process rigour. Recognising this, there have been some powerful initiatives by the government, especially over the past few years that include tax incentives and dedicated manufacturing parks, among others.

Most notable recently has been the Production Linked Incentive Schemes (PLI 1.0 & PLI 2.0) launched in FY2020-21 for a seven-year period, to boost domestic manufacture of medical devices across four key segments and in the in-vitro diagnostics space. The PLI model is also designed to attract big ticket investments in the sector. The government has allowed 100% FDI under the automatic route for both brownfield and greenfield projects to manufacture medical devices.

With around $600 million of FDI inflows into this sector in the last five years as well as the draft National Medical Devices Policy 2022 in the making by Department of Pharmaceuticals, the confidence of global players in this market is vindicated, indicating that India is on course for growth in the years to come.

India’s current position on medical devices needs reconsideration on many fronts for the country to move closer towards its healthcare goals and attain the projected growth for the sector. For instance, labour and skill shortages have been plaguing many sectors, and healthcare is no exception. Medical device manufacturing in India will have a multiplier effect on job creation for the manufacturing workforce.

This will simultaneously give rise to an opportunity to promote diversity and inclusion in a sector such as manufacturing with unconventional roles that are increasingly being taken on by women such as plant managers, engineers, and operators. Adequate training and opportunities for a manufacturing workforce will be crucial in ensuring efficient operations and optimum output in medical device manufacturing.

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The role of public-private partnerships (PPP) will also be crucial in shoring up manufacturing capacity, bringing in greater expertise and speeding up the adoption of new technologies and advanced techniques into the sector. This will only be possible with timely reforms by the government. While a lot has been done, there is potential to do more in the forthcoming years to make India an important supply source for medical devices globally, across the value chain. According to the Department of Pharmaceuticals, India is the 4th largest medical devices market in Asia after Japan, China, and South Korea. Only with a supportive and strong ecosystem with R&D facilities for frugal innovation in medical devices can India hope to become self-sufficient in this sector.

Despite the massive potential the country has in this sector, India must foster and retain a stimulating environment for local production of medical devices in its journey towards becoming an unparalleled medical manufacturing hub. To make this dream a reality, it is important to note that long-term prospects require long-term support. Building a comprehensive ecosystem to provide a fillip for the medical devices sector will be instrumental over the next few years in enhancing care delivery across India’s healthcare continuum.