DoP Secy Bats for Collaboration to Ensure Medtech Growth

DoP is boosting medical device export competitiveness through value-added manufacturing, targeting an import coverage ratio of 1.0.

In a recent event, the Department of Pharmaceuticals (DoP) secretary, Dr Arunish Chawla, highlighted the necessity of policymakers and industry collaboration to establish a robust policy framework for the growth of the medical devices industry in India.

The DoP aims to diminish India's reliance on imports, currently at approximately 75%, to 50% within five years, aspiring to position India as a global hub for high-quality medical devices and standards.

This was emphasized during the India MediTech Stackathon, a joint initiative by the DoP, Confederation of Indian Industry (CII), and leaders in the medtech industry.

The DoP is exploring avenues to enhance the export competitiveness of medical devices by emphasizing value-added manufacturing, aiming for an import coverage ratio of 1.0.

Emphasizing the importance of quality, the secretary stressed the need for India to achieve global competitiveness.

The MediTech Stackathon 2024 aims to delve into various product segments within the medical device ecosystem, mapping value chains through a bottom-up approach.

Its objective includes identifying key challenges and formulating a policy framework to foster the development of the medical devices industry.

Building a Strong Policy Stack

The policy framework for the sector should be grounded in a robust value chain, accurate economic classification such as the HSN and NIC Codes, and thorough assessment of tariffs and taxes for each component in the value chain.

Careful identification of policy discrepancies related to pricing, quality, taxes, schemes, and regulations is essential.

Moreover, the strategy should focus on bottom-up approaches, leveraging proximity advantages along the value chain, upgrading quality through improved testing facilities, and supporting common infrastructure.

Initiatives such as production-linked incentives (PLI) and research-linked incentives (RLI) should be implemented to promote innovation.

The workshop aims to identify key medical devices with potential for localization and exports, assess current import-export dynamics, evaluate domestic production, and identify major producers and industry clusters.

Additionally, it will analyze duty structures throughout the value chain, create a bill of materials for identified medical devices, and explore technological advancements and potential spin-off opportunities from other sectors.

Export Growth

Dr Chawla noted that exports had outpaced imports in consumables and disposables over the past year and encouraged the industry to sustain this growth across other segments of the medical technology sector.

Dr Chawla highlighted the growth in exports of medical devices from India, which increased from $2.29 billion in 2019-20 to $3.39 billion in 2022-23.

However, imports also grew from $5.84 billion to $7.49 billion during the same period, resulting in a net import of $4.10 billion in 2022-23. The import coverage ratio improved from 0.39 in 2019-20 to 0.45 in 2022-23.

He also urged the industry to sustain the momentum in other pillars of the medtech sector and continue efforts to boost export competitiveness while reducing import dependence.

By focusing on policy development, indigenization, and export growth, the aim is to establish India as a global leader in medical device manufacturing and innovation, thereby enhancing the country's health infrastructure and economic resilience.