The manufacturinggeriatric of medical devices in India depends on various factors such as, increase in the population, scientific advancements, the support of government for programs of healthcare, increase in life expectancy. In addition, the rise in technology, including internet speed, artificial intelligence, and machine learning, enables development in medical device manufacturing in India.
However, due to the rapid changes in the market of these medical devices, their production, costs and needs, it is a challenge for the manufacturers to be competitive. Therefore, to maintain competition, many companies of medical devices turn to outsourcing an essential part of their operations to any well established and settled contract manufacturing organisation.
Countries like China, Ireland and the U.S. have always dominated the market of medical devices. However, OEM\’s are searching for alternative methods of contract manufacturing. It is directed by rising economic and geopolitical challenges. Some of them are :
● Total high cost consisted of labour costs and raw material.
● Complications in supply chains because of fewer supply chains providing value service across the chain.
● Unfavourable policies of trade.
● Rising costs of imported devices provide less growth in return.
India: a Hub of Manufacturing Medical Devices
India has worked well in developing and progressing the sector of health. Therefore, in today\’s time, medical equipment manufacturers in India stand in a good position in the market. India is a desired and suitable destination because of its primary focus on two factors: design-to-cost as well as a robust ecosystem of manufacturing.
The five factors explaining why and how India is becoming an ideal destination for the manufacturing of medical devices in India are as follows:
1) Availability of the Vital and Skilled Resources
OEM\’s of medical devices are searching for partners of product engineering with well-established as well as proven expertise to collaborate with at a global level. In addition, there is a requirement of a skilled and experienced workforce with knowledge about evolving designs of technical instruments that can produce quality equipment. India had all these required factors, which makes it a desired and ideal base.
The growth in this domain between the years 2009-2016 was more than the overall global growth. These kinds of organisations flourish because of the quality experience of the engineers gained throughout development. With all these factors, excellence in communication skills, especially English, makes it desirable for intra articular companies to be partners and work with Indian companies.
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2) Initiatives Taken by the Government and Support Provided to the MedTech Industry
Programs like Make In India boost the manufacturing process benefitting the industries of medical device manufacturing in India. Some particular policies and programs make it easy to partner with the manufacturers changing governments perception from the regulator to facilitator.
GST is also a great support to the industry of medical devices. GOI approved setting up parks of medical devices in various states, Andhra Pradesh, Telangana, Kerala, Tamil Nadu, to help companies in setting up operations for manufacturing. These hubs will make it easy to access the facilities of testing and will be able to reduce production\’s costs.
3) Cost-effectual Operations
The low cost of labour and the raw material is a significant cost advantage to medical device manufacturing. The standard wage for any contract is approximately $3 per hour compared to $9 per hour in China.
Furthermore, due to the progress in acquiring the latest technology in engineering, India stands in a good position in effectively using miniaturised, complex, advanced and connected materials that require sophisticated production processes.
4) Being Sensitive to the Rights of Data Security and Intellectual Property
Indian engineering companies have successfully been considered as reliable outsourcing partners with the help of detailed contracts that outline the privacy and security of data across the globe. Regular audits are available for the system procedures used in the manufacturing of medical devices, and the policies align with the international requirements. They have multilayered and robust security systems which can deal with cyber attacks. India signed the TRIPS agreement as well as amended the Patents Act of 1970 to sync it with the requirements of TRIPS.
5) Strong Ecosystem for Supporting Production
There has been increased adoption of machine learning such as AR/VR. As a result, there is improvement in the production with the help of maintenance schedules to improve the efficiency of the equipment and to find out the best human intervention and technological processes combination.
IoT also played an important role to improve the management of supply chains by setting up better mechanisms for tracking the assets. Raw materials used, synced with the production schedules, make it easy to fulfil commitments of delivery efficiently.
By partnering with an engineering company in India, the manufacturers gain some benefits such as experienced resources, established processes, the expertise of data analysis, and evolving manufacturing ecosystem. This will lead to a better quality of management systems, thus, providing more valid reasons to attract global companies to develop a base of production in India.
To know more about medical equipment manufacturers in India, contact us at Operon Strategist.
