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Promote Components And Ancillary
Industry To Achieve ‘Make In India’ For Medical Equipment And Devices,
Recommends CII
New Delhi, August 10, 2015: The Confederation of Indian
Industry (CII), has submitted several key recommendations to the Department of
Pharmaceuticals (DoP) with regards to the infrastructure support required to
boost manufacturing in the medical technology sector in line with the
Government’s “Make in India” mission.
The Chairman of CII Medical Technology Department, Mr
Himanshu Baid, said “Without the availability of indigenous components, the PMA
policy will not yield any results, as already seen in the electronics and IT
hardware sector since the last four years. Before the implementation of PMA
policy in medical devices and equipment sector, there is a need to properly
analyze the components manufacturing capabilities in India.”
CII has emphasized the importance of recognizing the fact
that the manufacturing business case in India is quite challenging. While the
labour costs are lower in the country, the capital investment and productivity
of the labour are critical limiting factors to the manufacturing business case.
Combined with approval delays, this makes the manufacturing environment quite
challenging for entrepreneurs.
“Access to low cost capital through soft loans, subsidized
land, and assured power & water supply combined with tax incentives and
single-window clearance, would certainly build a stronger business case in
India,” said Mr Pavan Choudary, Co-Chairman, CII Medical Technology
Department.
Recommendations:
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Attracting big global
medical technology companies to India will help create a base which will then
build up the components ecosystem.
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This, in turn, will
enhance local capabilities, enable Indian companies to get access to components
and greatly enhance the local manufacturing capability.
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Once the ancillary
industry is established, there will be significant value addition in finished
medical equipment and device.
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To begin with, only
MSME / SME industry components can be given preference in the PMA policy.
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The process of
setting up manufacturing facilities needs to be streamlined by designating
medical technology hubs all over the country with the right infrastructure in
place to support complex medical technology manufacturing.
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Establish medical
technology hubs in each zone (north, south, east and west).
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Manufacturing
incentives like tax support and low-cost funding (5% lower rate than the bank
lending rates) to spur investments and make the business case attractive.
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Concessional power
tariff in manufacturing hubs.
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Subsidised land
prices for setting up medical devices industry in medical technology hubs.
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Inverted duty
structure should be corrected. Customs import duty on raw materials should be
lower than finished goods.
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4% Exports Incentives
for the sector should be given.
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The three year market
standing required for new manufacturing units to participate in Government
tenders should be done away with
India is already a large producer of disposables and
consumables in India, and export incentives are available for some products.
CII has emphasised the need for further capacity building in this segment and
focus on quality enhancement for further reduction in imports. The industry
needs to get exposed to the learnings of evolving quality standards from
countries which have had a head-start in innovations in this space.
There are several misconceptions being spread about the
medical technology industry amongst stakeholders. Therefore, it is important to
build a positive environment which makes a business case and opens doors for
investors to start manufacturing in this sector, thus paving the way for the
‘Make in India’ initiative.
(Ref: http://www.cii.in).
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