|
MSMEs In Covid-related Medical
Goods Fight Overcapacity Despite Second Wave After Early Rush Last Year
Covid impact on MSMEs: While the government had
approved the Production-Linked Incentive (PLI) scheme for 13 sectors including
domestic manufacturing of medical devices in February this year, it didn’t
include Covid-related medical equipment.
Covid impact on MSMEs: Among a handful of sectors
for which Covid-19 brought tailwinds last year was medical goods. The MSME-dominated
sector, which is among the top 20 global markets for medical devices, saw a
great rush in demand for Covid-related goods such as masks, personal protective
equipment (PPE) kits, RT-PCR test kits, etc., last year when the pandemic
struck. In fact, the government had last April, through a notification, urged
MSMEs in manufacturing or supply of medical and related equipment to register as
a supplier on the government’s e-commerce portal GeM to bolster the supply of
such products including ventilators, N95 masks, disposable thermometers,
alcohol-based hand sanitizer, protective gowns, etc. However, this led to
overcapacity in the market and a glut in production as supply outstripped demand
and eventually impacting MSMEs despite the second wave of the pandemic.
“MSMEs witnessed huge demand for Covid-related
medical products last year but the growth engines were rudely halted by the
complete backlash of overcapacity and glut in production because of steep fall
in domestic demand as Covid cases dropped compounded by a spike in zero duty
cheap imports. Also, MSMEs faced a double whammy as export of such products was
restricted. It took a lot of effort to get export restrictions lifted and custom
duties increased back to pre-Covid levels. By then the damage was done. This
setback grievously injured the nascent sunrise MSME sector which definitely lost
a lot of money in recent investments,” Rajiv Nath, Managing
Director, Hindustan Syringes & Medical Device, and Forum Coordinator,
Association of Indian Medical Device Industry (AIMED) told Financial Express
Online.
Most of the factories that came up last year to
make digital thermometers or oximeters are again shutting shop as they can’t
compete with cheap Chinese imports,” added Nath.
The Chennai-based promoter of Lesure Industries,
which makes Sanisfy Masks and infection control products, Sudhir Reddy said that
the government should have created a separate platform to facilitate the export
of Covid products to help MSMEs. “It was a challenge to establish a distribution
network for a product line that is seen as seasonal or having temporary demand.
So exports were more lucrative for us. I wanted the government to launch a
platform for (export of) Covid-related products but that didn’t happen,” he told
Financial Express Online. However, the Directorate General of Foreign Trade had
issued a notification in July last year for lifting restrictions on the export
of PPE kits, face shields, and masks including surgical, N-95, etc., with a
monthly export quota.
“MSMEs had produced Covid goods in bulk amid the
medical emergency last year. However, as cases started to decline postmid-
August or early September, the demand declined that lead to piled up stocks and
losses for MSMEs,” a healthcare sector expert told Financial Express Online. For
non-Covid product manufacturers, the market had started improving around
November last year as an outpatient department (OPD) at hospitals, and elective
surgeries were gradually resumed.
However, amid the second wave of the pandemic, as
OPDs have been shutting again while elective surgeries are getting postponed,
non-Covid medical devices are failing to find the market again. On the other
hand, now again with the onset of the second wave “Covid-related goods
manufacturers are confused because while they think there might be huge demand
coming in with cases shooting up but they don’t see much uptake as yet in their
own sales,” said Nath.
MSMEs are wary to invest in raw materials inventory
and hiring people having burnt fingers in the previous year. Meanwhile, there
are MSMEs that have witnessed growth amid the pandemic. “Last one year we have
grown our business 20-25 per cent,” Vikram Salunkhe, MD, Accurate Gauging &
Instruments (manufacturing measuring instruments and gauges in India) told
Financial Express Online. The MSME manufactures high-flow nasal oxygen
equipment.
https://www.financialexpress.com/industry/sme/msmes-incovid-related-medical-goods-fight-overcapacity-despitesecond-wave-after-early-rush-last-year/2241272/
Indian Companies Could Look To
Tap Vietnam’s Burgeoning Medical Devices Market: Mahesh Desai, EEPC India
Chairman
Indian firms might look to faucet Vietnam‘s
burgeoning medical devices market which meets almost 90% of the demand via
imports, stated EEPC India chairman Mr Mahesh Desai.
Japan, Germany, the US, China, and Singapore
account for almost 55% of the whole medical gadgets imported by Vietnam. The
home market comprising about 50 manufacturers contributes
lower than 10% to the market share.
“Vietnam seems among the many prime markets in
India’s exports of medical gadgets and likewise acts as a springboard to the
ASEAN nations,” stated Mr Desai in his introductory remarks at India-Vietnam
enterprise meet within the medical gadgets sector.
With demand for medical gear rising, Vietnam’s
medical system trade has emerged as probably the most promising sectors for
overseas buyers. The native authorities has supplied tax incentives to advertise
the trade.
“Many Indian producers of medical gadgets and
prescription drugs have already entered and invested within the Vietnam market
which is a really optimistic signal,” stated Mr Desai.
Dr. Madan Mohan Sethi, Consul General of India in
Vietnam stated that the South-East Asian nation’s medical system trade is likely
one of the most promising sectors for overseas funding because of the nation’s
financial growth and rising demand for sufficient medical care and gear.
“There’s loads of untapped potential on this space
(medical gadgets sector). The Covid-19 disaster has given a possibility to each
side to hitch fingers and arrange various world provide chains in numerous
merchandise which were disrupted by the pandemic,” stated Dr. Sethi in his
particular handle.
Mr Doan Quang Minh from the division of medical
gear and infrastructure, ministry of well being, Vietnam stated that the federal
government has been offering a conducive coverage setting to help native
manufacturing and buying and selling within the medical gadgets sector.
As Indian medical gadgets trade has been scaling up
manufacturing at a quicker tempo it might change into a worldwide powerhouse
within the sector over the subsequent few years. From its present market
dimension of US$ 11 billion, it’s projected to succeed in US$ 50 billion by
2025.
Mr. T.S. Bhasin, former chairman, EEPC India &
chairman – Committee on Commerce with ASEAN nations, stated that Covid 19
pandemic has modified the outlook however it has additionally motivated the
trade to discover and undertake alternative routes of collaborations for
progress and growth.
Given the rise in demand for medical gear globally
starting from consumables & disposables to high-value engineering healthcare
merchandise and gadgets within the wake of Covid- 19 pandemic, there’s enormous
export potential for Indian suppliers.
Medical gadgets export from India is projected to
develop at a CAGR of 30% to US$ 10 billion by 2025 from US$ 2.1 billion in 2020.
Vietnam and different ASEAN nations might be main export markets.
“It’s predicted that the scale of the Indian
medical gear market will attain US$ 11 billion by 2022. There’s potential
breakthrough for the financial and commerce relations between Vietnam and
India,” stated Mr. Hua Phu Doan, Vice Chairman of Ho Chi Minh Metropolis Medical
Gear Affiliation of Vietnam.
India is the fourth largest marketplace for medical
gadgets in Asia and among the many prime 20 markets for medical gadgets on this
planet.
The digital India-Vietnam enterprise meet was
nicely attended by medical gadgets producers and suppliers from each side. A
number of the corporations that participated within the occasion included
Transasia Bio-Medicals, Poly Medicure, Tejco Imaginative and prescient and
Hindustan Syringes & Medical Gadgets.
https://economictimes.indiatimes.com/news/economy/foreigntrade/indian-companies-could-look-to-tap-vietnamsburgeoning-medical-devices-market-mahesh-desai-eepc-ndiachairman/articleshow/82796952.cms
|
