Gujarat has maximum units under operation in medical & dental instruments: Study

The state, however, ranked 4th with 8.2% share in total output

Gujarat accounted for highest share of over 18 per cent in terms of total number of 316 factories operating in the medical and dental instruments and supplies sector across India, according to the sector specific analysis undertaken by the Associated Chambers of Commerce and Industry of India (Assocham).

“Gujarat also had the highest share of over 19 per cent in total number of 338 factories in the sector of medical and dental instruments and supplies,” according to analysis of the state-wise distribution of manufacturers of medical and dental instruments and supplies in the country by Assocham.

Of the total number of 65 factories in medical and dental instruments and supplies segment in Gujarat, 58 such factories were under operation as of 2011-12.

However, with an output worth just about Rs 439 crore, Gujarat is ranked fourth with a meagre 8.2 per cent share in the total output worth about Rs 5,300 crore of medical and dental instruments and supplies sector generated across India. The state, however, had third highest share of 10.1 per cent in terms of direct employment generated by medical and dental instrument factories operating throughout the country.

Clocking a compounded annual growth rate (CAGR) of over 15 per cent, imports of medical devices and equipments in India is likely to cross $4 billion mark by 2018-19 from a level of about $2.3 billion as of 2013-14, as per Assocham.

"Growth of medical goods' exports to India is expected to continue as a result of our burgeoning middle class, growing medical tourism industry, swelling private sector healthcare investment, aging population and heightened government commitment to provide health services to the rural population," noted a study titled 'Indian Medical Devices Industry: The way ahead,' conducted by Assocham.

"As currently much of the medical devices in India are imported therefore, going forward it is imperative for India to focus on development of domestic manufacturing capabilities for ensuring the nation's health security," said DS Rawat, secretary general of Assocham while releasing the findings of the chamber's study.

He further added that "Absence of a clear and consistent regulatory framework, lack of adequate incentives and funding for manufacturing devices, absence of medical devices' specific legislation, dearth of trained workforce for maintenance of medical devices, insufficient financing and lack of co-ordination between diverse stakeholders are certain key constraints faced in establishing this industry in India.There is a need for infrastructure creation for setting up green-field medical devices and equipment parks"

Over 18,100 people were employed in 316 factories under operation in medical and dental instruments and supplies sector in India producing a total output worth over Rs 5,300 crore as of ASI survey of 2011-12, highlighted the Assocham study.

Maharashtra had second highest share in of over 12 per cent in the total number of factories in the aforesaid sector while Uttar Pradesh (UP) had the second highest share of 10.4 per cent in total number of factories under operation followed by Maharashtra (10.1 per cent). Karnataka alone had over one-fourth share with over Rs 1,360 crore worth of output generated across 25 operating factories in medical and dental instruments and supplies segment in the state.While Haryana had highest share of over 25 per cent in terms of direct employment generated by medical and dental instruments' manufacturers across India followed by UP (11.6 per cent).

In its study, Assocham has suggested that Government needs to expedite the process of relaxing FDI policy for cash-starved medical devices sector attract more investments and boost domestic manufacturing. "FDI inflow is expected to spur research and development (R&D) and manufacturing innovations, in turn increasing the efficiency and effectiveness of medical devices," it said. It has further recommended to encourage innovative financing mechanisms and funding sources and to establish a large scale medical devices capital fund to invest in needed, viable, medical devices development and commercialisation, besides the fund would also support a national medical devices network.