MedTech Manufacturing Industry in India

The quick spread of novel coronavirus significantly puts a massive strain on businesses, leading the global economy to a recession. To curb the crisis, health systems across the world are working around the clock. From developing cost-effective ventilators to personal protective equipment (PPE), medical devices manufacturers are making aggressive moves to combat the virus. In the time of crisis, MedTech companies are witnessing uptake demand of medical devices, enabling them to quickly develop COVID-19-related devices to control the situation.

For instance, Protolabs, a rapid manufacturer of low-volume 3D printed, CNC-machined, sheet metal, and injection-molded custom parts for prototyping and short-run production, is seeing an urgent production of medical components for COVID-19, ranging from test kits to ventilators and respirators.

Recently, a Vadodara-based leading manufacturer and supplier of high-quality industrial safety equipment and industrial safety products Sure Safety (India) Ltd has developed first of its kind reusable PPE kit. The kit is developed by raw materials, such as multi-laminated fibres, anti-static materials with exhalation valves among others. According to the company’s Managing Director Nishith Dand, in few developed nations like Europe and the US, companies have recently begun making such kits. The waste generated from PPE kits can pose a great risk, and Sure Safety has used a new ‘air pass system’ to prepare new kits. The company has done a pilot project with a hospital in Vadodara and is hoping to start deliveries of these kits to other hospitals soon.

As the pandemic hit global supply chains, especially of medical products and devices, India moves to become a global manufacturing hub. In March this year, the Cabinet approved incentives for setting up ‘Medical Device Parks’ and ‘Bulk Drug Parks’ across the country to strengthen domestic manufacturing of medical devices, key starting materials (KSM), drug intermediaries and active pharmaceutical ingredients (API).

In this context, the Centre decided to set up four ‘Medical Device Parks’ and three ‘Bulk Drug Parks’ across the country. To this, the central government will provide incentives to states, and will give grants-in-aid to each state, up to INR 100 crore for each ‘Medical Device Park’ and INR 1,000 crore for each ‘Bulk Drug Park’ over the next five years.

Additionally, the Centre has also permitted Production Linked Incentive (PLI) schemes for fostering domestic manufacturing in these sectors. According to reports, the PLI will add up to INR 6,940 crore for critical key starting materials (KSMs), drug intermediates and active pharmaceutical ingredients (APIs) over the next eight years, and INR 3,420 crore for medical devices over the next five years.

Considering a report, the current market size of India’s medical devices industry is estimated to be US$11 billion and is expected to reach US$50 billion by 2025.

Moreover, diagnostics companies across the country are actively racing to test in the most accurate way possible. Conversely, biotech and pharma companies are working day and night to quickly develop vaccines and study potential therapies, while digital health companies are relentlessly providing everything, including remote care, virtual medical trials, and mental health support, among others.