Why India is emerging destination for medical device manufacturing?
Medical device manufacturing is driven by scientific advancements, rising geriatric population, increasing life expectancy, and government support for healthcare access programs. Additionally, emerging technologies, including the Internet of Things, machine learning, and artificial intelligence, have enabled medical device manufacturers to automate their product development and manufacturing processes.
Medical devices companies are turning to outsource a significant portion of their manufacturing operations to established contract manufacturing organizations (CMOs). CMOs offer significant cost-benefits, access to sophisticated infrastructure, large production capacities, and minimal time-to-market. According to industry estimates, the global medical device contract manufacturing market is expected to grow from $55 billion in 2019 to $91.3 billion by 2024.
The healthcare sector in India has rapidly progressed in the last decade. Today, the country is favorably positioned in the medical devices domain for outsourced contract design, development, and manufacturing. The focus on design-to-cost and a robust manufacturing ecosystem makes India a suitable destination for design-led-manufacturing of medical devices.
These are the 6 favorable reasons for medical device manufacturing in India
- Strict policies for Intellectual property rights and data security
- Skilled human resource & low operation cost
- PLI (Production linked incentive) scheme
- Make in India & Aatm Nirbhar Bharat Abhiyaan
- Robust ecosystem to scale production
- Medical device parks
1. Strict policies for Intellectual property rights and data security
Data is the new generation “Gold”, Indian engineering companies understand the value of data and the role it could play in maximizing the output. The global presence of reliable outsourcing partners has transformed the manufacturing pace in India. With experts and extensive multilayered security systems to detect data theft, most manufacturing companies are protected from data theft cybersecurity attacks.
2. Skilled human resource & low operation cost
India has highly skilled and talented professionals from prestigious institutions contributing to the R & D sector. Annually lakhs of young talented professionals are looking for enriching opportunities to join the force. The skilled labor at a reasonable cost can significantly benefit the medical device manufacturing companies looking for setting up operations in India.
3. PLI (Production linked incentive) scheme
Production linked incentives scheme has been proposed by the Govt. of India to boost domestic manufacturing and attract larger investments in industrial segments. The companies having a net worth of more than 18 crores (the US $2.45 million) qualifies under the scheme, also there is no restriction to apply for other schemes even after enrolling in this scheme. The eligibility criteria laid down under this is project undertaking must be a “greenfield investment”.
4. Make in India & Aatm Nirbhar Bharat Abhiyaan
The govt. of India adheres to the mission of “Make in India” and after the COVID-19 pandemic, the stress on promoting medical device manufacturing under the same will be pretty significant.
5. Robust ecosystem to scale production
The surroundings are rapidly evolving with productive, innovative, and safer shop floors. Harnessing the new generation technologies like IoT, the supply chain has reached the next level. The tracking is extremely simple and easy. The incoming of raw materials, production, and shipment are all kept in line maintaining the balance.
By partnering with an engineering company in India, the partners get everything from skill to scale under one umbrella. Thus, it’s a symbiotic growth leveraging human potential & technology at its best.
6. Medical device parks
The government of India has established a scheme to set up a medical device manufacturing ecosystem in India. The grant under the scheme will include world-class standard testing and infrastructure facilities in India. The primary goal is to reduce the medical device manufacturing cost, promote accessibility and enhance the overall affordability ratio in the country.
Conclusion
The coming years after the global pandemic havoc have created a massive hunger for quality medical device manufacturing. The Indian manufacturing industry will be a promising breeding ground for numerous med-tech startups and manufacturing companies. Also, the government schemes and fertile ground for establishing deeper connections with existing market will attract numerous medical giants to set up functions in India.
