National Medical Devices Promotion Council to be set up

• 15 Dec 2018

The government has decided to set up the National Medical Devices Promotion Council (NMDPC) to boost manufacturing, attract investments and promote exports in the medical device sector which is a sunrise sector.

Significance

• The Medical Devices Industry (MDI) plays a critical role in the healthcare ecosystem in the country.
• Having self-reliance in medical devices is important to achieve the goal of health for all citizens of the country. It will also help in reducing an import bill of over Rs 31, 000 crore in the medical devices sector.
• As Indian manufacturing companies and startups move towards creating innovative products, the setting-up of the Council will boost domestic manufacturing in this sector.
• Medical Devices Development Council will help in making India top 5 Medical Devices manufacturing hubs worldwide.

About NMDPC

• The Council will be headed by Secretary, Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry.
• Council will have representatives from concerned departments of Government, health care industry and quality control institutions.
• Andhra Pradesh MedTech Zone, Visakhapatnam, will provide technical support to the Council.
• The National Medical Devices Promotion Council will have the following objectives and activities:
  • Act as a facilitating and promotion & developmental body for the Indian MDI.
  • Hold periodic seminars, workshops, and all related networking activities to garner views of the industry.
  • Identify redundant processes and render technical assistance to the agencies and government departments to simplify the approval processes.
  • Enable entry of emerging interventions and support certifications for manufacturers to reach levels of global trade norms and lead India to an export-driven market in the sector.
  • Support dissemination and documentation of international norms and standards for medical devices, by capturing the best practices in the global market.
  • Drive a robust and dynamic Preferential Market Access (PMA) policy.
  • Undertake validation of Limited Liability Partnerships (LLPs) and other such entities within the MDI sector.

Sunrise Sector: An industry that produces new types of products or services, especially one that is expected to grow quickly. For example the food processing industry, space tourism, biotechnology etc.

The Medical Devices Industry in India

• The Medical Devices industry in India has steadily grown and is valued at more than $5 billion.
• As per industry estimates, the Indian medical devices market will grow to USD 50 billion by 2025.
• Currently, India is counted among the top 20 global medical devices market and is the 4th largest medical devices market in Asia after Japan, China, and South Korea.
• Up to 100% Foreign Direct Investment is permitted in Medical devices through the automatic route.

Challenges to Medical Device industry in India

• Low Penetration - The per capita medical device spending of USD 3, compared to USD 7 in China and USD 42 in Russia is significantly low.
• Lack of Accessibility - The Indian healthcare system is inadequate, inefficient, and unevenly distributed. 69% of the Indian population lives in rural areas, while 73% of qualified consulting doctors reside in urban areas. Eight percent of qualified doctors are in rural areas, and the remaining 19% are in semi-rural areas.
• Inadequate regulatory systems- Non-alignment with global standards and the lack of quality product testing infrastructure are issues that hinder sectoral progress.
• Real estate prices and high capital costs limit the growth of delivery infrastructure.
• Insufficient attention by policymakers and a complex tax regime are also responsible for the sector’s underdevelopment.
• The lack of a comprehensive policy and focus to develop the healthcare eco-system.
• The limited attractiveness of India as a destination for medical devices due to uncertain regulations and pricing environment, unavailability of skilled resources, and ease of doing business compared to other comparable destinations in Asia.
• Lack of innovation and customization resulting in fewer options available to the patients.