Medical Device Shortage Risk in India
India’s medical device industry is facing rising production challenges due to the sharp increase in polypropylene (PP) prices, a key raw material used in manufacturing syringes, IV bags, blood bags, catheter components, and surgical drapes. The surge is linked to ongoing geopolitical tensions in the Middle East, which are disrupting global supply chains.
Industry experts report that PP prices have increased by over ₹55 per kg since December, with a steep rise observed in March. In the past 10–12 days alone, plastic raw material prices have jumped by 25–35%, creating significant pressure on manufacturers.
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The impact is expected to be most severe on small and medium enterprises (SMEs), which make up nearly 90% of India’s medical device manufacturing sector. These companies operate on tight margins while producing essential medical disposables such as syringes, IV sets, and catheters.
In addition to rising raw material costs, manufacturers are also facing a gas supply shortage. Gas supplier Adani Total Gas has limited supply to only 40% of the contracted daily quantity, which may force companies to shift to more expensive alternative fuels such as diesel. This could further increase production costs and affect manufacturing efficiency.
Industry bodies have urged the Ministry of Commerce, Department of Pharmaceuticals, and Ministry of Health and Family Welfare to take immediate action, including faster customs clearances for alternative supply routes, subsidies on critical inputs, and measures to prevent freight cost escalation.
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Role of Operon Strategist
Operon Strategist supports medical device manufacturers in managing such industry challenges through:
- Supply Chain Risk Assessment: Helping manufacturers identify alternative sourcing strategies and mitigate disruptions.
- Regulatory Compliance Support: Assisting companies in meeting global regulatory requirements while adapting to supply chain changes.
- Market Access Strategy: Guiding manufacturers in expanding to new markets and maintaining compliance during global uncertainties.
- Operational Advisory: Supporting businesses in improving manufacturing efficiency and managing rising input costs.
