Michael Barbella, Managing Editor08.09.22
Shortages of medical supplies during the COVID-19 pandemic have pushed the Indian government to promote domestic manufacturing, according to GlobalData. The new National Medical Devices Policy 2022, as well as other incentives offered by the Indian government, will both reduce reliance on foreign imports and create employment opportunities, the company claims.
“Introduced in 2022, the National Medical Devices Policy has started making waves," said Rohit Anand, practice head on the Medical Devices team at GlobalData. "For example, the state government of UP has now initiated steps to encourage medical devices manufacturers to begin production of high-end medical devices. While no specific areas have been announced as of yet, diagnostic Imaging devices could be a key area of interest, from the point of view of both the government and manufacturers. DI devices are likely to gain investment in the coming years, as these are being used increasingly in labs and hospitals.
The domestic manufacturing of high-end medical devices is expected to support India’s aim of becoming a manufacturing hub.
“India wants to become as self-sufficient as possible. Shortages of medical supplies during the COVID-19 pandemic took a huge toll on the country, and has spurred the change," Anand noted. "India’s manufacturing capabilities have seen significant development in the last few years, with GlobalData’s research revealing that India was among the top three medical devices markets in Asia-Pacific in 2021, and is expected to grow at a compound annual growth rate of 7.9% through to 2030.”
The UP Government has recently announced a list of incentives, including subsidies on capital interest; incentives on air cargo, zero waste, and skill development; reimbursement of State Goods and Services Tax (SGST), and a patent filing fee. These incentives will be given to companies setting up units in the state’s first Medical Devices Park. The state government has also offered industrial plots under this scheme at a lower cost.
“Domestic and multinational companies can utilize the Indian government’s move towards domestic manufacturing to gain market share. GlobalData expects that UP’s incentives, and the increased availability of skilled local labor, will help the state become a preferred manufacturing destination in India,” Anand said.
“Introduced in 2022, the National Medical Devices Policy has started making waves," said Rohit Anand, practice head on the Medical Devices team at GlobalData. "For example, the state government of UP has now initiated steps to encourage medical devices manufacturers to begin production of high-end medical devices. While no specific areas have been announced as of yet, diagnostic Imaging devices could be a key area of interest, from the point of view of both the government and manufacturers. DI devices are likely to gain investment in the coming years, as these are being used increasingly in labs and hospitals.
The domestic manufacturing of high-end medical devices is expected to support India’s aim of becoming a manufacturing hub.
“India wants to become as self-sufficient as possible. Shortages of medical supplies during the COVID-19 pandemic took a huge toll on the country, and has spurred the change," Anand noted. "India’s manufacturing capabilities have seen significant development in the last few years, with GlobalData’s research revealing that India was among the top three medical devices markets in Asia-Pacific in 2021, and is expected to grow at a compound annual growth rate of 7.9% through to 2030.”
The UP Government has recently announced a list of incentives, including subsidies on capital interest; incentives on air cargo, zero waste, and skill development; reimbursement of State Goods and Services Tax (SGST), and a patent filing fee. These incentives will be given to companies setting up units in the state’s first Medical Devices Park. The state government has also offered industrial plots under this scheme at a lower cost.
“Domestic and multinational companies can utilize the Indian government’s move towards domestic manufacturing to gain market share. GlobalData expects that UP’s incentives, and the increased availability of skilled local labor, will help the state become a preferred manufacturing destination in India,” Anand said.