Coronavirus disease can impact India’s medical devices industry, says GlobalDataMarch 11, 2020
The spread of Covid-19 cases is likely to affect India’s heavily import-dependent medical product supply chain resulting in the shortage of critical medical devices, suggests data and analytics company, GlobalData.
The Indian medical devices market, which accounted for more than 13% of the Asia-Pacific (APAC) medical devices market in 2019, is expected to grow at a compound annual growth rate (CAGR) of 7.5% through 2025, according to the company’s research.
India imports a variety of consumables, disposables and capital equipment including orthopaedic implants, gloves, syringes, bandages, computed tomography and magnetic resonance imaging devices from China.
The huge dependency of the Indian medical devices industry on China for raw materials and electronic components needs to be reduced, says the report.
“Currently, medical device manufacturers across India are struggling to get important raw materials and electronic components from Chinese factories, which were shut for weeks to contain the coronavirus outbreak. Even as some of the factories have reopened, shortages of some critical electronic parts and raw material still persist,” says Rohit Anand, Medical Devices Analyst at GlobalData.
Over the last few months, the shortage has started impacting the margins and profitability of Indian companies importing medical devices and small components to manufacture finished products.
The company urges domestic manufacturers to look for alternative sources to import raw material and electronic components.
‘The Indian government to take measures to reduce dependency on China as it may take longer for the country to come out of this threat. On the other hand, this could be an opportunity for India to become a hub of global medical device manufacturing.” concludes Anand.