India wants to revive the medical equipment industry

After 30 years of rapid development, India has grow from a country that its medicine industry foundation is weak for API production to a country just after China API production country in the world. However, compared with China’s rapid development of medical device industry system, medical equipment industry in India is truly a “short legs”. Notably, according to recent report for the foreign media, India’s central government has modeled the development pattern after the success of the bangalore software science and technology industrial park , prepare to build the country’s first large-scale medical equipment industrial park in Gajarat which has a better medical equipment manufacturing foundation, and plan to build another medical equipment industrial park in the deccan peninsula southeastern state of Tamil nadu in the future , to fully revive the Indian medical equipment industry.

It is the first time for India planning to establish the medical equipment industrial park. The Times of India analyzed and  pointed out that it had to do with  Mr Modi who had a year in his office of India’s prime minister, his ambition is  about “made in India” plan.  The Indian government department noted that at present 75% of the hospital medical equipment product comes from import, the domestic medical equipment products  only has about 25%. By contrast, 80% ~ 90% of India’s health care system needed drugs is local production, imported drugs accounted for less than 20%. According to Mr Modi government developing idea, the development of India’s medical equipment industry wants to change the exsiting situation that there major product is imported in a short period of time, promote local medical device products to replace imported products, in order to satisfy the demands of hospitals.

In addition, the government department also noted that the medical device industry gap betwween India and China on  is widening. To change this situation as soon as possible, Mr Modi government hopes to copy the pattern of bangalore software industrial park, to build India’s first medical equipment industrial park, enhance the research and development  ability of medical equipment products in India.

India’s central government chemical and fertilizer department chief,  Ananth Kumar recently pointed out that India’s medical equipment industry is far behind the world level. Now the global medical device industry output value is more than $250 billion, while India medical equipment production is less than 2% of the total output value of global medical devices, this is not commensurate with India’s status as a world power. In order to promote the overall development of Indian medical equipment manufacturing level, the government will adopt the following new industrial supporting policy : 1. Immediately stop to import medical imaging diagnosis, such as all kinds of second-hand computer tomography (CT) machine, the X-ray machine, magnetic resonance (MRI) apparatus, color B ultrasonic instrument equipment. Encourage and promote the domestic enterprises to develop and produce such medical device; 2. Reduce the CT machine, the X-ray machine, magnetic resonance imaging (MRI) apparatus, color ultrasound machines and other medical equipment parts and raw materials import duties, in order to promote the local companies to copy such medical device; Give into Indian medical equipment industrial park production companies a variety of preferential tax policies, such as decrease the level of income tax in 2 years.