Challenges of Supply Chain and Regulation in the Medical Technology Sector
Overview of Medtech Sector Challenges
Despite India's $10 billion medtech market potential, growing businesses in this field remains difficult. Experts attribute these challenges to an underdeveloped supply chain, regulatory hurdles, and talent shortages.
Supply Chain Issues
One of the key issues is the lack of a robust local supply chain, which was highlighted at the annual health conference 'Scale-Up Health 2024'. Indian medtech companies face a shortage of component suppliers that limits their ability to scale operations and compete on pricing.
- Anish Bafna, MD and CEO of Healthium Medtech, emphasized the urgent need for more component suppliers.
- Lack of a developed ecosystem forces companies to import components, increasing costs and affecting competitive pricing.
Regulatory Hurdles
Regulatory issues are also significant obstacles. India's medtech regulatory framework is still evolving and leads to a complex landscape. Companies must comply with varying standards from different government agencies.
- Anu Moturi, CEO of Kriya Medical Technologies, noted the need for clarity and industry input in developing regulations.
- Regulatory bodies are adapting rapidly but face challenges in implementing changing standards.
Talent Shortages
Another pressing challenge is the lack of qualified talent, particularly in research and development.
- Companies struggle with insufficient specialized training, leading to investments in internal employee training.
- Kriya Medical Technologies addresses this through internal training programs and providing international exposure for employees.
Government Initiatives
Promising initiatives are emerging to support the medtech sector, such as:
- Production Linked Incentive (PLI) scheme.
- Establishment of medical device parks.
These initiatives aim to enhance infrastructure, facilitate research, and attract foreign direct investment to bolster domestic manufacturing capabilities.
Opportunities in Global Manufacturing
With multinational companies diversifying their supply chains away from China, India is poised to benefit significantly from this shift, enhancing its global market presence.
As medical devices gain recognition under the 'Make in India' campaign, Indian companies are showing that despite challenges, they can compete effectively on a global scale.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.