The Union Cabinet on Wednesday approved the medical devices policy. According to Health Minister Mansukh Mandaviya, the aim of this policy will be to promote industry in a “holistic manner” from the current size of $11 billion to $50 billion over the next five years.
During the coronavirus pandemic, the country’s medical devices sector played a crucial role in the large scale production of medical devices and diagnostic kits, such as Ventilators, Rapid Antigen Test kits, Real-Rime Reverse Transcription Polymerase Chain Reaction (RT-PCR) kits, Infrared (IR) Thermometers, Personal Protective Equipment(PPE) Kits and N-95 masks.
According to a statement by Ministry of Chemical and Fertilizers, the National Medical Devices Policy, 2023 is expected to facilitate an orderly growth of the medical device sector to meet the public health objectives of access, affordability, quality and innovation.
Features of National Medical Devices Policy, 2023:
- Policy is expected to help the Medical Devices Sector grow from present $11 Bn to $50 Bn by 2030.
- Policy lays down a roadmap for accelerated growth of the medical devices sector to achieve the following missions viz, Access & Universality, Affordability, Quality, Patient Centred & Quality Care, Preventive & Promotive Health, Security, Research and Innovation and Skilled manpower.
‘An opportunity to ost domestic production of medical devices’
Arvind Sharma, Partner, Shardul Amarchand Mangaldas & Co told Financial Express.com that the approval of the National Medical Devices Policy, 2023 by the Union Cabinet is a welcome step towards making India self-sufficient in the medical devices market.
“This provides an opportunity to boost domestic production of medical devices and reduce the need for imports. Increased domestic production will also result in better local access, affordable prices and a chance to innovate within the medical devices sector of the country,” Sharma said.
Sharma also highlighted that while providing a lucrative picture for the future of the medical devices sector, the policy embodies a framework which promises simultaneous efforts towards 6 core focus areas in the medical devices sector, namely:
- easing of regulatory procedures;
- improvement of infrastructure;
- dedicated resources towards R & D and innovation;
- promotion of private investment and funding (including venture capital and public private partnership);
- development of human resources through skilling, re-skilling and up-skilling programmes; and
- creation of a dedicated export promotion council for promoting market access to the Indian medical devices sector.
“This presents us with an extremely positive outlook for the medical devices sector in India and one can hope to see exponential growth in the coming years,” he added.
‘Spotlight on Research and Development’
Welcoming the policy, Pavan Choudary, Chairman MTaI told Financial Express.com that though we still have to go through the fine print, we are encouraged by the spotlight turned on R&D.
“While India has only 1.5% of the global medical device market, it has 8% share of the MedTech R&D work force already. This is a fertile and proven area to focus on. In addition to this skilling and upskilling of healthcare workers augers well for patient-care and man power exports. Adjacent to this announcement we have also happily noted that government is planning to open 157 nursing colleges. This is another well chosen space as it is estimated that new technologies like AI which may make the desktop healthcare worker (even many doctors) redundant will not impact the nursing staff so adversely. So this policy has a note of enduring prudence to it,” Choudhary told Financial Express.com.
He also pointed out that the emphasis on creating a systematic brand positioning and awareness creation program is long due and laudable.
“All in all from what is available so far in the public domain it seems a policy which harnesses both the domestic and international currents to optimally forge the path ahead,” he added.
Meanwhile, Anish Bafna, CEO & MD, Healthium Medtech claims that the Union Cabinet’s approval of the Medical Devices Policy will fastrack the medtech sector’s progress towards the imminent mission of achieving self-reliance and reducing our dependency on imports.
“The medtech sector is poised to grow significantly in the next few years with India being the manufacturing hub. The government’s focus on the medtech sector for enabling infrastructure, facilitating R&D, attracting investments like FDI and sectoral upskilling with talent development will encourage and promote domestic manufacturing in India. With the commissioned PLI schemes and medical device parks, the policy will support the ‘Sunrise Sector’ in India to grow rapidly with a patient-centric approach, meet the evolving patient safety standards and ensure last mile delivery of accessible healthcare for all,” Bafna told Financial Express.com.
‘Step towards ‘Atmanirbhar’ India’
Mudit Dandwate, CEO & Co-Founder of Dozee informed Financial Express.com that the approval of the medical devices policy by the Union Cabinet comes as an excellent step forward in the journey towards making India ‘Atmanirbhar’.
“Focused on reducing the country’s dependency on imports, the medical device policy will help the rapidly growing medical device industry flourish over the next 5 years, from its current size of $11 billion to $50 billion. Further, this policy will support India’s already expanding market by encouraging domestic production and fueling exports, helping the nation realize its dream of ‘Make in India, Make for World’. The integration of technology with healthcare requires holistic policies to be in place to enable the digital adoption of new-age innovative solutions such as remote patient monitoring, e-consultations, and telemedicine among others, and this policy helps foster this spirit of cooperation,” Dandwate said.
According to him, laying the required foundation and streamlining the approval procedure will guarantee a sturdy framework aimed at not just drawing in foreign investments, but also inspiring local ‘Make in India’ players to thrive.
“This will make it possible for both well-known players in the sector as well as startups to contribute considerably to raising healthcare availability in the country. The reality that India still imports 75% of its medicinal equipment is a major obstacle when it comes to making medical care affordable for all. Therefore, the substantial investment of Rs 1,206 crore which the policy commits to the allotment, will be tremendously beneficial in reinforcing its domestic production. Furthermore, initiating public procurement included under this policy will boost Indian manufacturers and offer the needed push to promote ‘brand India’, and lift global awareness of Indian medical devices with an eye on boosting the government’s vision of ‘Made in India for the world’,” he added.
Dandwate also revealed that with the evolution of medical technology over the years, it is important to note the critical role it has come to play in addressing the existing gaps in the country’s healthcare ecosystem.
“Human intervention assisted by technologies such as digital therapeutics and connected care systems is the key to shifting the trajectory of healthcare in India from being curative to preventive. The policy’s special emphasis on skill development to equip medical professionals better adapt to technology will help bring innovators and healthcare practitioners together to work towards providing quality care,” he added.
Meanwhile, Dr. GSK Velu, Chairman, and MD of Trivitron Healthcare said that this policy will drive accelerated growth, promote innovation, and create new jobs in the sector. With a patient-centric approach, we will ensure medical devices’ quality, safety, and efficacy while making them affordable and accessible to all.
“Let’s work towards achieving our goal of making India a global leader in medical device manufacturing, with more than 10-12% share over the next 25 years,” Dr. Velu told Financial Express.com.
“The government’s progressive medical device policy, promises to drive increased consumption, spur innovation and R&D activities, enhance affordability, and promote accessibility. This bold initiative will undoubtedly propel our industry forward, benefiting patients and revolutionizing healthcare on a global scale,” Shishir Agarwal -Secretary NATHEALTH and Managing Director, Terumo India Private Limited told Financial Express.com.
It is noteworthy that the scheme has committed an investment of Rs 1,206 crore, of which investment of Rs 714 crore has already been achieved. It aims to increase domestic manufacturing of high-end medical devices such as MRI, CT scan, mammogram, C-Arm, and X ray tubes.
“We will urge the world to come to India with FDI,” Mandaviya said while addressing the media.