India Plans Medtech Industrial Parks To Boost Local Device Manufacturing
By Jof Enriquez,
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The government of India recently announced plans to build the country’s first industrial parks dedicated to medical device manufacturing. The first such medtech park is planned to be constructed in Gujarat, while the second one is planned for Chengalpattu in Tamil Nadu.
“We have spoken to the Gujarat Chief Minister already on this and the state based National Institute of Pharmaceutical Education and Research will be the nodal institute to supervise it,” said Ananth Kumar, union minister of chemicals and fertilizers, in a recent report from the Economic Times. “We have also spoken to the finance minister and revenue secretary to firm up the incentive structure that can be provided for the same.”
Kumar’s remarks came as he announced a government report on boosting the domestic production of high-end medical devices to counter the dominance of imports.
“Unfortunately we are an importing country as far as medical devices go, with our domestic industry accounting for 2% of the global industry which stands at $250 billion. This is what we are aiming to change over the next five years under the leadership of Prime Minister Narendra bhai Modi as we align with his vision to ‘Make in India” said Kumar, according to the Economic Times report.
India is importing around 69% of its total requirement for medical devices, according to the Business Standard. Imports of high-end medical devices — which includes medical electronics, hospital equipment, and surgical instruments — make up as much as 87% of the total Indian market.
The multi-agency government Task Force on Promotion of Domestic Production of High End Medical Devices released a set of recommendations to help lessen India’s dependence on medical device imports.
According to the Business Standard, the task force has recommended beefing up policy, institutional, fiscal, and infrastructural support to the local device industry; creating an institutional set-up for efficacy and safety testing; promoting skills development; and strengthening R&D. In addition, the government is also implementing a revamped pricing strategy on imports and revising medical device regulations in favor of domestic production.
The task force is also promoting the passage of a Medical Device Regulatory Act for the $6-billion industry.
“This will provide dedicated, predictable, transparent, globally harmonized and appropriate regulations for medical devices and will ensure that medical devices are only subjected to device relevant laws and not to those relevant to drugs,” according to the recommendations, per the Times of India.
The Confederation of Indian Industry (CII) lauded the government’s plans to implement reforms in the local medical device sector. The group, however, expressed reservations on an earlier measure that allows 100% percent foreign direct investment via an automatic route as counterproductive.
“A right balance is required between access, affordability and return on innovation,” CII’s medical technology division said in a statement, according to the Times of India.
Image credit: "Indian National Flag" by Jpoonnolly. Licensed under CC BY-SA 3.0 via Wikimedia Commons.