Government incentives such as rationalization of inverted duty structure and soft loans in order to establish manufacturing plants can help propel the medical devices industry in India, according to a report.
India is a growing market for medical technologies in the global space. But experts feel that it has not yet achieved its true potential, in terms of both setting up a hub for manufacturing and innovation as well as market opportunities, according to a report titled ‘Medical Technology: Vision 2015’ published by CII-BCG.
The report stated that by 2025, India holds an opportunity amounting to US$ 50 billion within the medical technology arena.
The study listed out a 10 point agenda targeted at the Indian government, which shows that there is an urgent need to raise health care spending on the part of the government. There is also a growing need to provide a single window authority meant for regulation.
The Indian government, on priority basis, needs to make its move over the following year in order to propel the medical technology sector. The report suggests that India also needs to expand its health care spending and provide a platform where the country can engage in purchasing across states and schemes.
The report also seeks for specific soft loans and tax incentives in order to establish manufacturing plants that are at par with rival health care destinations such as Malaysia. Indigenous manufacturing of medical devices should be become a major priority, the report added.
In addition, the report also recommended bringing into place a single window authority that will regulate the manufacturing of medical devices in the country and also improve the capabilities of various manufacturing bubs speckled across the nation.
Rationalizing inverted duty structure of components and raw materials has also been specified in the report.