Absence of any regulations for curbing imports of poor quality or substandard quality medical devices, lack of R&D capabilities with high reliance on outsourcing technology, are some of the leading factors affecting the competitiveness of Indian medical consumables, stressed the Association of Indian Medical Device Industry (AIMED).
The Association strongly feels that only a proactive stance and planned approach by the government will be able to help the industry in overcoming its shortcomings and challenges that present unfair market conditions for the domestic players.
AIMED expressed this views in the wake of Department of Pharmaceuticals (DoPs) strategic decision to study the reasons behind the shortcomings of the Indian manufacturers in expanding their business in the domestic market even when they have substantial share in exports. Keen to get the issues of the industry addressed, AIMED has prepared a list of fifteen important factors affecting the competitiveness of Indian medical consumables.
The association has carefully enlisted the same following deliberations with all the stakeholders to ensure that domestic players too get a fair chance to grow in the Indian market. Rajiv Nath, forum coordinator of AIMED stressed that competition from US importers who manipulate tender specifications or request for bids to have an exclusionary clause of US FDA approval; unethical marketing practices of MNCs directly or through their distributors who lure doctors or opinion leaders to endorse their brands through compensation are also major deterrent for the domestic sector.
"Lack of Indigenous studies by doctors or institutes to do bench marking of Indian devices to prove competitiveness and cost effectiveness or other user or consumer benefits is also an impediment. Strong brand image or perceived better quality performance of MNC brands, inadequately defined procurement technical specification which allow substandard quality to be supplied by importer or trader; menace of pseudo manufacturers are also our key concerns that needs to be eradicated. Based on our observation and detailed analysis of the current market, we will be strongly advocating for this cause at this meeting. And hope that some radical decisions will be be taken to boost the growth and confidence of the industry," he pointed out.
Nath further added that industry have been suffering gravely due to the governments apathy in the past, forcing the sector to increasingly become import dependent. Lack of financial muscle of Indian manufacturers to match MNC's participation cost in super speciality industry conferences where cost of booth for mere two to three day is exorbitantly priced at Rs.5 to 20 lakh have further complicated things for domestic players.
He further observed that restrictive trade practices of bundling of expensive consumables as restrictive supplies along with delivered subsidized capital equipment which are refurbished at times are also a major cause of concern. Competition from lower cost imports from China and other countries due to low duties and 17 per cent subsidy by China on Chinese exports; competition from MNCs which are either not putting any MRP or putting very high MRP as desired by corporate hospitals will also be discussed during this meet.