Duty exemptions proposed in the recent central government budget are expected to give a boost to the medical electronics market in India. According to Frost & Sullivan the medical electronics markets in India is estimated to grow to $11.7 billion by 2017 with a CAGR of 16 per cent.
Though the indigenous manufacturing of medical electronics in India is far lacking behind, the recent central government’s push in the form of tax and duty exemptions is expected to boost local manufacturing of medical electronics in the country. According to the new investment policy proposed in the budge any company investing Rs. 100 crore or more in plant and machinery during the period will be entitled to deduct an investment allowance of 15 per cent of the investment.
Last year in 2013, the medical electronics market in India was valued at $6.5 billion, and with the central government’s aid the markets for this segment is likely to grow at a compound annual growth rate of 16 per cent to reach US $11.7 by 2017.
However, According to Niju V, director,automation & electronics practices, Frost & Sullivan, “In India, medical devices need to be made for Indian operating conditions. Focused policy on medical devices factoring in all industry stakeholders including technology developers, manufacturers, healthcare providers, insurance providers, and patient groups can give a big boost to the sector.”
The National Policy on Electronics, which has a specific mention on the medical electronics as one of the thrust areas is expected to catalyse the growth. As per the policy it has provisions for financial incentives for medical electronics manufacturing not only for new units but also for units relocating from outside India.
The Drugs and Cosmetics (Amendment) Bill, 2013 is now considering medical devices as separate from pharmaceutical products in the regulatory structure. A strong framework that provides for medical devices standards in India is an imperative to boost domestic manufacturing, bring in reliability, and better time to market new technologies in medical electronics.
According to Frost and Sullivan, for providing healthcare, which is universal, affordable, and preventive in nature, the Indian medical electronics industry will shift towards developing miniaturised, multifunctional, ultra-low power, portable, and reduced cost devices that could be used for patient monitoring, imaging, implantable, therapeutic, and surgical requirements. The wearable devices category, which is still a developing field in India, can potentially aid physicians to offer extended care outside the clinical environment. This will bring higher efficiency and increased access across Tier 2, Tier 3 cities, and rural India, while providing improved healthcare delivery to urban India.
“Five aspects including miniaturisation through System on Chip (SoC) designs, wireless integrated circuits, efficient power management, intelligent sensors, and connected IT infrastructure will dominate future technology landscape of the Indian medical electronics industry,” points out Niju, while referring to the new trends in the electronics industry.