Updated: Nov 30, 2024 04:39:12pm
India’s Medical Technology Sector Targets USD 20 Bn In Exports By 2030
New Delhi, Nov 30 (KNN) The Confederation of Indian Industry (CII) has projected significant growth potential for India’s medical technology industry, anticipating exports could reach up to USD 20 billion by 2030.
However, this ambitious target hinges on crucial government support and strategic policy interventions.
Currently, India faces a substantial trade imbalance in medical equipment. The country imports approximately 60 to 70 percent of its medical technologies, with domestic manufacturing accounting for only around 30 percent. Imports stand at roughly USD 8 billion, while exports hover near USD 4 billion.
Himanshu Baid, Chairman of the CII National Medical Technology Forum, highlighted India’s strategic advantages in this sector. The country is well-positioned to capitalize on the global ‘China plus one’ strategy, leveraging its strengths in software development, hardware engineering, and cost-competitive labor.
To realize this export potential, the industry is calling for several key policy reforms. These include extending the Production Linked Incentive (PLI) scheme across more medical technology products, enhancing export incentives, and addressing regulatory complexities.
Baid emphasized the need for a separate regulatory framework for medical devices, which currently falls under the pharmaceutical sector’s regulatory umbrella.
The industry also seeks modifications to existing regulations. Specifically, the Quality Control Order (QCO) requirements for raw material suppliers pose significant challenges for local manufacturers.
Baid argued that these regulations create barriers for small suppliers attempting to register globally.
Export infrastructure improvement is another critical area of focus. The industry wants to reduce shipping delays, comparing India’s current two to three-week container shipping timeline unfavorably with China’s more efficient two to three-day process.
The CII recommends increasing export incentives under the Remission of Duties and Taxes on Export Products (RoDTEP) scheme from the current 0.5-0.7 percent to 2-2.5 percent.
This adjustment would help manufacturers offset hidden costs and improve international competitiveness.
Of the existing PLI scheme for medical devices, only 28 companies have been allocated funds, with merely 10 to 20 percent of the Rs 3,400 crore budget utilized.
The industry urges the government to expand the scheme’s scope and more aggressively support domestic manufacturing and export initiatives.
As India seeks to transform its medical technology landscape, these proposed interventions could be pivotal in reducing import dependence and establishing the country as a global medical technology manufacturing and export hub.
(KNN Bureau)