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Medical Devices Industry To Grow Beyond
$50 Bn: CII-BCG Report
The Indian medical technology sector has the potential to
touch $50 billion by 2025 if it continues to grow at 10-12 per cent annually.
Globally, the medical technology market is expected to be $600 billion+ by 2025.
India can capture 10 per cent of that share by 2025 if provided with adequate
support and policy guidance, according to a CII and Boston Consulting Group (BCG)
study.
Based on the findings of CII-BCG -Vision Document – 2025
which was unveiled recently in the Capital, it was concluded that the medical
technology sector remains highly under–penetrated contributing 7 to 8 per cent
of the healthcare spends as compared to pharmaceuticals at 18 per cent.
‘Vision Document – 2025’ prepared by CII and BCG on the
medical technology sector also pinpointed that outdated and irrelevant laws like
Drugs & Cosmetics Act pose major regulatory hurdles to the medical technology
industry. Vision Document 2025 was unveiled by Union Health Secretary Lov Verma
and Dr K Vijay Raghavan, secretary, Department of Biotechnology, on the occasion
of CII-BCG MedTech event held in New Delhi recently.
Speaking on the sidelines of the 7th Medical Technology
Conference following the unveiling ceremony, Amitabh Kant, secretary, Department
of Industrial Policy & Promotion (DIPP), Government of India said, “Indian
medical technology industry can touch more than $50 billion in the next decade
if emphasis is given on local manufacturing with funding and incentives from
industry and government.
As per the Vision Document, setting up the right
manufacturing capabilities could spur an additional $20 billion manufacturing
opportunity for the Indian medical technology space in addition to a $30 billion
domestic market opportunity available today. “Therefore it is essential that the
sector exploits the cost advantage it wants to compete with China for the global
market,” adds Kant.
Lov Verma, Union Health Secretary, said, “The medical
technology sector should also look at CSR initiatives at promoting sanitation
like building toilets in schools”. While, Dr K Vijay Raghavan, secretary,
Department of Biotechnology, Ministry of Science & Technology said that local
innovation has to be promoted if the sector has to realise its true potential
and that Government will have to play a leading, guiding role to ensure that.
CII Director General Chandrajit Banerjee, said, “CII is happy
to acknowledge that medical technology sector is a sunrise sector. Elaborating
on the theme of effective governance, Pavan Choudary, chairman, Medical
Technology Division, CII said “Classification of medical devices as drugs pose a
burden to the process of investment with fiscal policy obstacles and regulatory
hurdles. It impacts FDI, technology transfer, local investment, manufacturing,
operations, innovation and exports”.
“The Vision Document 2025 highlights the need for a
dedicated, separate and globally harmonised regulation for medical devices”,
added Himanshu Baid, co-chairman, CII Medical Equipment Division. Rahul Guha,
partner and director, Boston Consulting Group (BCG) India remarked that there
was lack of investment, lack of regulation, less priority of the government and
this was therefore a vicious circle. “The innovations and the licenses is
something that unfortunately is not going in tandem with each other,” Guha said.
To build up a roadmap for India to reach its full potential
in medical technology, CII and BCG assembled a think tank of 40+ industry
participants to brainstorm and determine the key levers required to be able to
unlock the true potential of India. BCG held a set of workshops across Mumbai
and Delhi to discuss and debate the right focus areas and develop a roadmap to
unlock this potential.
Among the key recommendations proposed by the CII-BCG Report
are need for a separate regulatory act for medical technology, need for
manufacturing incentives (for example tax support, low cost funding to spur
investments), single–window clearance to ease the regulatory burden for the
industry, creation of ‘National Innovation Policy’ to reward results in
innovation, need for world-class manufacturing infrastructure, setting up of
collaborative partnerships, investing in Capability Development and Training by
setting up Centers of Excellence for medical technology training, global task
force to promote India as a manufacturing and R&D hub globally, create industry
sponsored programs between local and global industry on joint collaboration
projects, industry academia collaboration and to facilitate Curriculum
adaptation as well as crosspollination of knowledge between students of Medical
Technology and Business Management.
(Ref:
http://www.pharmabiz.com/PrintArticle.aspx?aid=83659&sid=1)
Commerce Ministry Brings Export Of Medical Devices, Pharma
Machinery Under EEPC
In a strategic move to address major export related concerns
of the medical device and pharma machinery sector, the Government recently
announced that EEPC INDIA formerly Engineering Export Promotion Council will
henceforth handle the export related issues and promotional activities of the
industry. It is understood that the government took this decision after lot of
deliberation and suggestions from Pharmexcil who has been handling the sector
till recently and the stakeholders, simultaneously.
EEPC deals with export promotion of engineering goods,
projects and services from India.
The information shared by the ministry of commerce in a
meeting with the stakeholder held in Gujarat last week, was well received by the
industry as experts feel that finally the exporters of the medical device and
pharma machinery industry will get a deserving platform to raise their issues
and concerns with the government. This move stems from the fact that there had
been a strong consensus within the industry that medical device and machinery
industry, an outcome of engineering marvel, mainly comprising of electronic
devices need a larger and appropriate forum than Pharmaceutical Export Promotion
Council of India (Pharmexcil).
Interestingly, earlier the Council used to handle exports of
only those medical devices notified as drugs under the Drugs & Cosmetics Act,
whereas it is understood that now EEPC will be handling exports of all the
medical devices. Dr P V Appaji Director General (DG)of Pharmexcil informed that
it is practical and feasible move, especially since hardly few companies where
members of the Pharmexcil, making it more difficult for the Council to represent
the industry at the Centre.
According to D L Pandya, an expert from the medical device
industry, this move will enable and open up a lot more opportunities for this
sector as there are a lot of issues and challenges that the industry is
currently grappling with that needs urgent intervention from the government to
boost up the exports.
“Though Pharmexcil is a very competent forum, it had very
little role to play for the medical device industry. This made us feel left out
from the incremental and developmental scope, which will hopefully change now
with all the activities being migrated to EEPC. Now that a suitable forum is
given to represent our cause as per our demands we hope to see positive change
in the business, with adequate focus being rendered to our industry specific
issues,” stressed Pandya who is also the chief executive officer, of Medical
Plastics Data Service.
He further informed that to get better exposure they have
also demanded to government to include even supply chain companies for medical
devices and pharma machinery under the ambit of EEPC as they also make an
important part of industry.
(Ref:
http://www.pharmabiz.com/NewsDetails.aspx?aid=83175&sid=1)
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