India Can Emerge As Med Equipment Mfg Hub Soon

Experts in the medical equipments are of the view that India can emerge as an alternative destination to China in the field of medical equipment and devices manufacturing if the central government extends the right impetus and make necessary changes in its policy.

Engineering excellence, cost effective labour, increasing emphasis on intellectual property rights and most importantly a fast growing domestic markets makes large-scale medical technology manufacturing a viable option for India now. Besides, India has the technical resources, production capability in terms of quality, cost and delivery to indigenously manufacture and market medical devices.

With input industries to medical technology sector like electronics, biotechnology, information technology and sheet metal fabrication booming in India, the research and production of medical devices and equipment should be encouraged in the country, Dr. GSK Velu, managing director, Trivitron Group of companies told Pharmabiz.

With multiple levies on Indian manufacturers like increased customs duty compared to finished goods import, excise duty and VAT make domestic manufacturing of medical device and instruments financially unviable. Lack of clarity in regulations and absence of pricing norms is allowing bigger players to charge exorbitant prices for their import.

By removing anomalies exemption of excise and VAT on domestic manufactured goods and providing capital grants and subsidies, the government can assist the indigenization initiative of this industry, he said. Velu is also the president of Association of Medical Devices and Suppliers of India.

(Ref: The Chronicle Pharmabiz dated 14, February 2008)