India invites investments from Japanese companies

A webinar on ‘Medical Devices and API sector: Challenges & Emerging Opportunities’ was held on May 22, 2020 for business and trade collaboration between India and Japan in the post COVID-19 scenario. The webinar was organized by the Embassy of India, Tokyo in partnership with the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Govt. of India.

Sanjay Kumar Verma, Ambassador of India to Japan shared his thoughts on the opportunity for India and Japan to further boost their relationship in the context of the ongoing COVID-19 crisis. PD Vaghela, Secretary, Pharmaceuticals presented the sectoral view and the investment opportunities in the pharmaceutical and medical device industry in India. Navdeep Rinwa, Joint Secretary, Pharmaceuticals elaborated on the department’s schemes to promote manufacturing of bulk drugs and medical devices viz. Production Linked Incentive schemes and Promotion of Bulk Drug/Medical Devices Parks and requested the delegates to avail benefits of the schemes.

Pharmaceutical Traders Association and Japan Federation of Medical Devices Associations deliberated on the post COVID-19 challenges & opportunities for pharmaceutical & medical device sectors and its impact on the global supply chain and suggested that cooperation between the two countries can contribute to stabilize the supply-chain of especially APIs and medical devices. Representative of JETRO Chennai also shared insights on challenges and emerging opportunities in API sector and medical devices.

Mona K C Khandhar, Minister (Economic & Commerce), EoI, Tokyo reiterated on the resilience and strength of the Indian economy and detailed on the stimulus & reform packages announced by the Government of India to address the COVID-19 crisis and to improve the investment environment. The advantages of Indian economy, FDI ecosystem & Japan specific facilitation were also highlighted.

Representatives of Japanese subsidiaries Nipro India Corp and Eisai Pharmaceuticals India Pvt Ltd shared a detailed presentation and their experience about ‘Make in India’ program.

Representatives of major Indian Pharmaceutical and Medical Device Associations presented on future growth opportunities.

Rajiv Nath, Forum Coordinator, AiMeD invited the Japanese investors to set up manufacturing base in India via technical collaboration with Japanese MSME, joint venture with Japanese SME, 100 percent direct investment by large company, and licensing of technology/patent by MSME. Nath elaborated that the business environment in India is changing. Measures have been taken by the government to support the industry. Correction of inverted duties, cess added on to basic duty, setting up of ICMED Quality  Assurance Certification by QCI, a medical device regulatory framework, separately from pharma, Medical Device Parks with common manufacturing facility being set up to create a conducive cost effective manufacturing environment, a Preferential Market Access Policy to protect investments and support indigenous manufacturing under Make in India Public Procurement Order and provision of facilitation services by India Invest to investors as Make in India enablers are the prominent ones.

India imported Rs 38800 Cr and exported Rs 12700 Cr of medical devices in 2019.  India has a potential for over Rs 70,000 Cr investment in medical devices over the next 5 years. The government is targeting 1,200 technical collaborations between Japanese companies and Indian investors for over 42,000 crore, 200 joint ventures with overseas investors for Rs 14,000 crore, and another 14,000-crore investment from about 50 multinational companies. Last month, the industry had requested the Indian Ambassador to invite Japanese Inc to shift factories from China to India.

Representatives of State Governments of Gujarat, Telangana, Himachal Pradesh and Goa offered finer details of the investment opportunities in their respective states including package for incentives and taxation benefits, ease of doing business initiatives, land availability, infrastructural facilities, regulatory framework and invited Japanese companies for investing in their respective states.

Representatives of Andhra Pradesh MedTech Zone, SMT Technologies, Allengers, Transasia, Trivitron, Hindustan Syringes & Medical Devices Ltd and Wockhardt, Sun Pharma, Panacea Biotec in the pharma sector and other large number of Japanese companies participated in the webinar.

–MB Bureau