U.S.-India Business Council concludes successful talks with Government of India on Medical Device Investment
Led by Boston Scientific and the Boston Consulting Group, talks focused on concrete recommendations: to Make in India, the industry must also Innovate in India
NEW DELHI – The U.S.-India Business Council (USIBC) concluded its Medical Device Trade Mission to New Delhi on 22 December 2015. The delegation, led by Maulik Nanavanty, Senior Vice President and President for Neuromodulation at Boston Scientific, comprised of representatives from Boston Scientific, The Boston Consulting Group (BCG), Abbott, Medtronic, Johnson and Johnson, Varian Medical, GE Healthcare, Underwriters Laboratory and other U.S.-based companies. The delegation expressed its commitment to working with the Indian government to create the proper ecosystem to incentivize investment in the medical technology sector (MedTech) and ensure better health outcomes across the country.
BCG’s analysis provides insight into the unique nature of the MedTech industry relative to biopharmaceuticals and other industries. The report notes the crucial role local R&D plays alongside testing, clinical trials and manufacturing as growth drivers in the industry and noted that in order to “Make in India”, an ecosystem must first be created to “Innovate in India.” The analysis also highlights the relationship between MedTech exports and the size of local MedTech market, with the exception of jurisdictions with significant tax advantages.
The delegation encouraged the Indian government to move forward on focused R&D investment with the goal of developing “fit-for-market” products against pressing disease states in India and emerging markets. They believe this will lead to industry growth through development of a local MedTech ecosystem and a manufacturing base to satisfy domestic and global demand.
The delegation also highlighted short-term policy measures required to unlock the industry’s potential including the creation of a strong and independent MedTech regulatory body and adoption of internationally harmonized standards (e.g. labeling requirements) in close coordination between all stakeholders including Indian clinicians, regulators, industry bodies, and multinational companies. Longer-term recommendations centered on expansion of health care coverage in India and tax incentives to promote manufacturing.
Meetings with the Government of India included Ministry of Health, Ministry of Chemicals and Fertilizers, Department of Commerce, Ministry of Finance, Ministry of External Affairs, and others.
“We were pleased to engage in productive discussions over the past few days on the roadmap outlined by BCG toward accelerating investment in India’s MedTech sector. BCG’s recommendations build on India’s many strengths, including top-notch engineering talent and success in IT innovation, and suggest creating the necessary ecosystem to make India a hub for research and development and market-appropriate product innovation in India. The time is now for public-private collaboration to fulfill India’s potential in this space,” said Nanavaty.
Colm Foley from Boston Consulting Group said that “MedTech is an attractive industry for India – one in which India can leverage its competitive advantages to build a unique position the ecosystem. We see great opportunities for “win-win” collaboration via private-public partnerships between the Indian government, Indian researchers, Indian clinicians, and US-based MNCs. R&D is one place where all parties are incentivized to work together and we believe a focus on innovation in India can help drive ‘Make in India.'”
“USIBC is pleased to support BCG’s analysis as a path forward and has encouraged the adoption of many of the recommendations. For example, a high priority for our members continues to be the passage of legislation that would provide specific regulations for medical devices, which are currently treated as pharmaceuticals under India’s Drug & Cosmetics Act. Our medical device members are excited about the opportunities in India and look forward to continuing to work with the Indian government on investment incentives and improved health outcomes” said Amy Hariani, Director and Legal Policy Council at the U.S.-India Business Council.
About U.S.-India Business Council:
Formed in 1975 at the request of the U.S. and Indian governments, the U.S.-India Business Council is the premier business advocacy organization, comprised of more than 300 top-tier U.S. and Indian companies advancing U.S.-India commercial ties. USIBC is the largest bilateral trade association in the United States, with liaison presence in New York, Silicon Valley, and New Delhi.
About The Boston Consulting Group:
The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 82 offices in 46 countries.