Medical device industry seeks ease of doing business
New Delhi: Government needs to create health infrastructure and come out with a law separating medical devices from drugs before it pushes the vertical towards local manufacturing, industry body MTaI said.
Medical Technology Association of India (MTaI) also stressed on ease of doing business stating that profits are coming down in the segment with government enforcing price caps on medical devices using the same formula as being done in case of drugs.
The body also asked for applying differential pricing for drug-eluting stents by classifying them on the basis of technology used.
"The government needs to recognise that medical technology sector is capital intensive with a long gestation period requiring continual infusion of technology and accordingly take a nuanced approach in its policy-making mechanisms," MTaI Director General Pavan Choudary told reporters here.
MTaI Director Varun Khanna said that three issues needed to be immediately addressed to generate interest and actions on Make in India.
"First, we need globally harmonised regulatory policies providing safe and effective products for patients in India and abroad. Beyond products, policies around investments, infrastructure, research and development add to the appeal of manufacturing in India," he said.
Secondly, companies need to gain financial viability for making in India through various tax waivers or incentives, he added.
"And thirdly, we need more impetus on healthcare infrastructure," Khanna said.
MTaI member Probir Das said that to start with, regulations specific to medical devices must be laid out, which recognise the difference between medical devices and drugs.
"The real benefits to the sector will only become available with the creation of a different law," he added.
In February this year, government capped the price of coronary stents. It is also said to be working to bring various other medical devices under price control.
It is also pushing local manufacturing to bring down the cost of medical devices.
In February, the government had notified new rules to remove regulatory bottlenecks and ensure availability of medical devices for patients.
The government plans to bring in a new law to promote and regulate medical devices industry as well as rationalise duty structure on imported equipment.