Slow and steady wins the race

As geopolitical tensions between China and the United States persist, India is going all the way to be the preferred alternative. At a recent industry event, Dr Arunish Chawla, Secretary of the Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers, declared that encouraged by the success of the PLI scheme for medical devices and the 20 big greenfield projects’ commenced operations, the government is working on a new scheme to strengthen the medical devices sector and reduce import dependence. The proposed scheme will focus on five key areas – common facilities for medical devices clusters, capacity building and skill development, marginal investment scheme to reduce import dependence, a focus on support for clinical trials, and a medical devices promotion scheme. A comprehensive ecosystem is being created, and the concept of MedTech as an industry is being entrenched.

The Center is all set to introduce a separate uniform code for medical device marketing firms. The medical devices industry has long demanded a separate marketing practices code. Currently, the industry has to comply with the marketing practices code for pharmaceuticals.

At another recent industry event, Dr Jitendra Singh, the Union Minister for Science and Technology, reiterated that the government is taking every possible step for India to become the global manufacturing hub for medical technology and devices. A research group is in place to create indices, draw benchmarks, and propose a plan of action. The minister called for robust industry-academia-research and entrepreneurship linkages, reinforcing the need for a collaborative approach toward a Healthy India by 2047.

That said, while the Union Budget 2024 has introduced various positive measures for the medical devices industry, several challenges remain. 75 percent of medical devices continue to be imported. The Indian regulatory environment is complex and ever-changing. The sector faces supply chain hurdles due to the poor roads in India, with the risk of damaging expensive healthcare products. Quality control is another challenge, as medical devices are life-critical systems. Further, abolishing the buy-back tax may not be an attractive option for Indian investors; foreign investors benefit from tax treaty benefits.

On the international front, due to political unrest in Bangladesh, the number of patients visiting India for medical treatment has plummeted by up to 50 percent. This downturn has impacted revenues for Indian hospitals, especially in Kolkata. Bangladesh accounts for 50–60 percent of India’s medical tourism inflow.

Although no Mpox cases have been reported in India, the WHO has declared it a public health emergency of international concern (PHEIC), and the nation is on a high alert as the cases rise globally.