India’s plan to initiate a phased manufacturing program (PMP) to reduce import dependency will open opportunities to domestic and foreign medical device manufacturers in India, says GlobalData, a leading data and analytics company.
The company’s report, ‘X-Ray Systems – Diagnostic Imaging Market Analysis and Forecast Model’ reveals that the Indian X-Ray systems market, which accounted for more than 11% of the Asia-Pacific (APAC) medical devices market in 2019, is expected to grow at a compound annual growth rate of 5% through 2028.
Under PMP, domestic manufacturers will get financial benefits for manufacturing various components of medical devices. Initially, the Indian government plans to boost the domestic production of X-Ray systems and its components by giving tax reliefs and incentives to domestic manufacturers. Earlier, a similar scheme was initiated for mobile manufacturing that helped in creating a strong local mobile manufacturing hub in India.
Pratibha Thammanabhatla, Medical Devices Analyst at GlobalData, comments: “PMP will give a decent opportunity for domestic players to gain market share and at the same time, still allowing foreign firms to choose India as their manufacturing destination. In addition, with increase in domestic manufacturers, the share of imported devices is expected to gradually come down.”
However, challenges such as shortage of continuous power supply, proper infrastructure and high risk intellectual property protection are some of the challenges that need to be addressed to make India a manufacturing hub of medical devices.
Thammanabhatla concludes: “India is trying to increase the accessibility of quality products at affordable price to millions of people by encouraging domestic manufacturing of medical devices. PMP is expected to bring a paradigm shift and make India a global medical device manufacturing hub.”