Medical devices companies in India are facing the onslaught of cheap Chinese imports. The Chinese products are 30-40 per cent cheaper than the Indian products.
According to estimates by the Association of Indian Medical Device Industry (AIMED), the medical tech and devices industry in India has doubled from Rs 31,900 crore in 2013-14 to over Rs 60,000 crore in 2016; however, about 80 per cent of them are being imported.
Besides, there are 30 products that are facing tough competition from cheap Chinese imports.
“Indian manufacturers are caught in the middle. For many government orders, they are unable to even bid as tender specifications are designed to suit US bidders by having a mandatory US FDA approved compliance clause which many Indian manufacturers may not have, so they lose out on perceived quality deficiency. On the other hand, they lose out to cheap low-priced Chinese imports, which are backed by Chinese govern ment subsidies. The government needs to come out with a clearly-defined preference purchase policy for ‘Made in India’ products based on indigenous content,” Rajiv Nath, Forum Coordinator, AIMED was quoted as saying.
Several Indian companies are compelled to lower prices to compete with the imported product, which is usually unprofitable and de-motivating.
Source: Media Reports & TOI