With the COVID-19 pandemic pushing the Indian medical devices sector to scale up production to meet the sudden spike in demand, it now wants to grab the opportunity to become self-reliant, provided the government rolls out some reforms.

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Many imported components, including semiconductor display, magnets and capital intensive equipment, could be made by Indian firms if they were assured policy certainty because they required big investments, said authors of an article published in the International Journal of Drug Regulatory Affairs, this month.

The article was authored by the Assistant General Manager of Biotech Consortium India (BCIL), and the Forum Coordinator of the Association of Indian Medical Device Industry (AiMeD). As the labour and electricity cost of manufacturing these components in the country was very high, the firms were not able to reach economies of scale, they said. To lower the input cost and manufacture them at cheaper rates, the government should provide infrastructure and logistic support, they added. Among other reforms, the medical device industry needs flexibility in labour laws and tax incentives. Many exclusive medical device parks, like Andhra Pradesh Medtech Zone (AMTZ), were required to be developed, they wrote.

They acknowledged that the government interventions helped the medical devices industry scale up production during the pandemic. As per AiMeD, there were only 20 firms manufacturing personal protective equipment (PPE) before the outbreak of COVID-19. But within two-three months, the number of manufacturers doubled to 40. Similarly, the number of Indian firms manufacturing gloves increased from 20 to 26, ventilator manufacturers from 8 to 14, mask manufacturers from 21 to 43, swab manufacturers from zero to three, and sanitizer manufacturers from 35 to 47. With primary membership of over 350 firms and more than 200 associate members, AiMeD claims to represent the interest of nearly all Indian medical devices manufacturers.