Today, India is the 4th largest medical devices manufacturer in Asia, with a market value in 2020 was $11 billion and is expected to reach $65 billion in 2024. The industry currently comprises around 750 – 800 medical devices manufacturers and is expected to rise, with the increasing importance on local manufacturing and the Government’s emphasis on the ‘Make in India’ initiative. Indian Machine Tools Manufacturers Association (IMTMA) is the apex body and single point of contact for the machine tool industry in India. IMTMA plays a crucial role in the growth and development of the metalworking industry in the country. IMTMA’s initiatives range from policy advocacy, export promotion, trade fairs, mega-events, training, seminars, technology missions, publications, etc. IMTMA, formed in 1946, represents 90% of the organized machine tool and allied equipment manufacturers in the country. During an email interaction with Nitisha from BISinfotech; Ravi Raghavan, President, Indian Machine Tools Manufacturers Association (IMTMA) highlights the medical devices manufacturing industry and its upcoming growth.
Could you throw some light on the medical devices manufacturing scenario in India?
In terms of market size, India ranks among the top 20 markets in the world for medical devices and the market is expected to leap by 37% CAGR to $50 billion by around 2025, as per Government of India estimates. Medical devices is one of the champion sectors identified by the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India for promoting domestic manufacturing and localization of imports.
In furtherance of this, the government through the PLI scheme of Rs. 3,420 crores is giving incentives for select categories in cancer care/radiotherapy, cardio-respiratory, renal care, and all implants. To boost the market the union government is encouraging 100% FDI for medical devices.
To support the medical devices industry in India, the Ministry of Chemicals and Fertilizers launched a scheme for “Promotion of Medical Devices Parks” with an outlay of Rs 400 crore. As per the ministry, the scheme aims to significantly reduce manufacturing costs, optimize resources, and provide easy access to standard testing and infrastructure facilities.
Buoyed by the announcement of the scheme, Himachal Pradesh, Tamil Nadu, Madhya Pradesh and Uttar Pradesh gave green signals to set up medical devices parks. Medical devices parks are also coming up in Andhra Pradesh, Telangana, Tamil Nadu, and Kerala, all of which are under various stages of development.
Following the onset of the pandemic and spotlight turning on the healthcare sector, medical devices manufacturing began attracting investments and R&D. Many new developments took place in 2021.
Examples include Punjab government announcing a proposal of setting up a medical devices park in the state at an estimated cost of $24.67 million, the establishment of a state-of-the-art facility in Bengaluru for manufacturing catheterization laboratories, and strengthening the infrastructure for cardio-vascular diseases, etc.
What are your views on the role of Government’s Make in India scheme in furthering the growth of the medical devices manufacturing industry?
The Government of India’s ‘Make in India’ scheme has given encouragement for foreign and domestic firms to make India their base for manufacturing. Notification of the Public Procurement (Preference to Make in India), Order 2017 has helped in giving preference to India-made products. Besides establishing strategic partnerships between Indian and overseas firms, we find that Make in India has also provided a boost to nurture start-ups in the country.
Medical industry geared up well during the pandemic by indigenously manufacturing the devices needed to tackle Covid besides developing vaccines and supplying them across the world.
How do you think the machine tool industry is helping transform the manufacturing of medical devices and help the industry become self-reliant?
The Indian machine tool industry is aligning itself to the needs of the medical industry to manufacture sector specific machines. Indian Machine Tool Manufacturers’ Association (IMTMA) has been conducting Desktop Research to find new business opportunities for its member companies. We also formed dedicated taskforces to formulate a strategy to address customers in these sectors.
What is the impact of emerging technologies such as AI, cloud, etc. on the machine tools industry?
Emerging technologies such as artificial intelligence have made processes more efficient and trackable. The insights are more real-time and managers are able to make quick decisions on basis of that. It is also bringing in digital transformation for industrial automation.
Industry 4.0 needs smart and connected machines. Most of the leading Indian Machine Tool companies are using AI and cloud solutions for their IOT requirements. This has helped customers improve their productivity.
What are IMTMA’s upcoming plans?
Indian machine tool industry is working with the medical industry and other sunrise sectors, building indigenous technologies and machines to serve their needs. IMTMA is also organizing its flagship IMTEX & Tooltech at the Bangalore International Exhibition Centre in Bengaluru, which will give broader visibility and connectivity for the machine tool industry to showcase the technologies developed by it.