Though Karnataka had just about eight per cent share in terms of total number of 316 factories operating in medical and dental instruments and supplies sector across India, the state generated highest amount of over Rs 1,360 crore in output of medical and dental instruments and supplies sector across states in India, noted a study titled 'Indian Medical Devices Industry: The way ahead,' conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Karnataka had fourth highest share of about eight per cent in total number of 338 factories in the sector of medical and dental instruments and supplies across India, according to analysis of the state-wise distribution of manufacturers of medical and dental instruments and supplies in the country by ASSOCHAM based on data complied as part of Annual Survey of Industries 2011-12 conducted by the Government of India.
Of the total number of 26 factories in medical and dental instruments and supplies segment in Karnataka, 25 such factories were under operation as of 2011-12.
Karnataka had sixth highest share of just over eight per cent in terms of direct employment generated by medical and dental instrument factories operating throughout the country.
Over 18,100 people were directly employed in 316 factories under operation in medical and dental instruments and supplies sector in India producing a total output worth over Rs 5,300 crore as of ASI survey of 2011-12, highlighted the ASSOCHAM study.
Clocking a compounded annual growth rate (CAGR) of over 15 per cent, imports of medical devices and equipments in India is likely to cross $4 billion mark by 2018-19 from a level of about $2.3 billion as of 2013-14, projected the study prepared by the ASSOCHAM Economic Research Bureau (AERB).
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Growth of medical goods' exports to India is expected to continue as a result of our burgeoning middle class, growing medical tourism industry, swelling private sector healthcare investment, aging population and heightened government commitment to provide health services to the rural population, the study noted.
As currently much of the medical devices in India are imported therefore, going forward it is imperative for India to focus on development of domestic manufacturing capabilities for ensuring the nation's health security, said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the findings of the chamber's study.
Absence of a clear and consistent regulatory framework, lack of adequate incentives and funding for manufacturing devices, absence of medical devices' specific legislation, dearth of trained workforce for maintenance of medical devices, insufficient financing and lack of co-ordination between diverse stakeholders are certain key constraints faced in establishing this industry in India, said Mr Rawat.
There is a need for infrastructure creation for setting up green-field medical devices and equipment parks, he added.
The Government should aim towards encouraging foreign investments in large numbers in the medical devices' sector as healthcare and diagnostic segment in India has been growing rapidly thereby creating a major potential market for manufacturing medical devices and related equipments in the country, suggested the ASSOCHAM study.
It is a high growth segment and increased foreign direct investment (FDI) along with collaborative arrangements to expand domestic manufacturing capacity is imperative for the same, it added.
As India's burden of disease transitions from communicable to non-communicable diseases (NCDs) driven by socio-economic advancements, medical devices will play a critical role in helping their diagnosis and treatment.
All the concerned stakeholders at various levels in the healthcare industry - the manufacturers, the policy makers, the healthcare providers, the insurance players and medical education institutions need to join hands for a sustained growth of medical technology industry, further suggested the study.
A long term sustained integrated approach with multiple programs and collaborative partners across the country is required for advancement of medical devices sector in the country, added the study.
Ultimately, the Government has to play the role of a key enabler thereby taking care of product approval framework, safety guidelines, foreign direct investment (FDI) policy, developing and promoting medical-technology clusters for indigenous manufacturing and up-skilling the workforce.
In its study, ASSOCHAM has suggested that Government needs to expedite the process of relaxing FDI policy for cash-starved medical devices sector, attract more investments and boost domestic manufacturing. FDI inflow is expected to spur research and development (R&D) and manufacturing innovations, in turn increasing the efficiency and effectiveness of medical devices.
It has further recommended to encourage innovative financing mechanisms and funding sources and to establish a large scale medical devices capital fund to invest in needed, viable, medical devices development and commercialization, besides the fund would also support a national medical devices network.
Focus upon building medical devices expertise by introducing specific educational programs and relaxing the strict quality norms demanded by Indian regulatory authorities in creation of clusters are certain key suggestions listed in the ASSOCHAM study.
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