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Indian Medical Device Industry
: Present Status & Future Potential
Manufacturing medical
devices indigenously can reduce health care costs : Dr.
Reddy
The only means to cut down
costs of devices and disposables, which constitute a major
component of healthcare cost, is by manufacturing them
indigenously in India, avers Dr. Krishna Reddy, chairman
of Relisys Medical Device – Drugs.
Only few low end products are
being manufactured indigenously, such as fluid
administration sets, blood bags and products such as
condoms and copper – T. Majority of the low end devices
and disposables are manufactured in the un-organised
sector.
Efforts have been made in the
high end products like heart valves, implantable
pacemakers and coronary stents. Chitra Institute, a DST
funded unit, has developed heart valve, he noted.
Emphasizing the need for close
synergy between the medical devices industry and the
government, he commended that if a congenial environment
is provided, the Indian medical devices and disposables
industry can be of a formidable force in the domestic and
international market. By 2007-08, an organized indigenous
industry can take care of 50 per cent of the domestic
market, which could be roughly to the tune of US $3,500
million and can achieve a modest export of around US $
2,000 million. The estimated world market size of medical
disposable imports is around US $ 1200 million per annum.
Health care industry is currently witnessing a growth of
20 per cent and is likely to reach 50 per cent growth rate
level, soon. The value of imports within five years is
likely to be around US 7,000 million per annum. During the
period, the world market is expected to touch US 260
billion.
[Ref: Pharmabiz Hospital
Review, dt. 31/05/04]
Government Recognition and Regulations
Healthcare Industry
The Indian healthcare sector and budget 2003-04
Highlights :-
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Recognised as a knowledge-based industry with great export potential
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Hospitals : Investments into healthcare sector should now go up substantially with the proposed extension of tax benefits to financial institutions, which provide capital to private hospitals with 100 beds or more.
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Medical Equipments : Reduction in customs duty on specified life saving equipments from 25 percent to 5 percent and their exemption from CVD can bring down the cost of investing in technology in hospitals and other healthcare institutions. The revised rate of depreciation at 40 percent from 25 percent – a significant sop for healthcare sector.
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Pharmaceutical Industry : The budget has given a definite boost to the research and development activity with a string of incentives
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Clinical Trials : The government knows well that conducting clinical and pre-clinical trials is going to be a big business in India in the years to come. New incentives should attract many more R&D ventures into the country.
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Health Insurance : Provisions on health insurance will make a difference to the quality of life, thereby promoting demand for the sector.
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Bulk drugs and other chemicals : But the decision to reduce the peak customs duty on bulk drugs and other chemicals to 25% from 30% is not in the overall interest of the domestic industry. A 5% cut in customs duty, will make imports more attractive and can discourage existing bulk drug producers.
(Ref: The Economic Times, March 02, 2003)
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