India’s medical devices get boost from domestic manufacturing push
The country’s new national medical devices policy is expected to reduce import reliance.
India’s new medical devices policy that aims to encourage domestic manufacturing of medical devices in the country is expected to support India’s aim of becoming a manufacturing hub, according to a report from GlobalData.
The Indian government has been making moves towards domestic manufacturing of medical devices as reliance on foreign imports caused shortages of medical supplies during the COVID-19 pandemic, the report stated.
GlobalData noted that the country’s new National Medical Devices Policy 2022, as well as other incentives offered by the government, will both reduce reliance on foreign imports and create employment opportunities.
“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 (CAGR) of 7.9% through to 2030,” said GlobalData’s practice head on the medical devices team, Rohit Anand.
Anand noted that the state government of Uttar Pradesh has now initiated steps to encourage medical device manufacturers to begin production of high-end medical devices.
The state government has also 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 will be given to companies setting up units in the state’s first Medical Devices Park.
The Uttar Pradesh government has also offered industrial plots under this scheme at a lower cost, GlobalData added.
“Whilst 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,” Anand said, commenting on the state government’s initiatives.
Anand advised domestic and multinational companies to consider utilizing the Indian government’s move towards domestic manufacturing to gain market share.
“GlobalData expects that UP’s (Uttar Pradesh) incentives, and the increased availability of skilled local labour, will help the state become a preferred manufacturing destination in India,” he said.