MTaI pitches for Japan as alternative to China for medtech imports

Medical Technology Association of India (MTaI) is pitching Japan as an alternative source to China for the import of critical healthcare equipment.

MTaI, which represents research-based medical technology companies, stated that India, like most countries, including leading manufacturing hubs like the US, Japan, and Europe, meets a significant portion of its medical technology needs through imports.

However, the increasing value of medical technology imports from China is becoming a growing concern, and alternatives must be explored on priority, it noted.

At present, India has developed adequate manufacturing capacity for some categories of medical equipment; but for more complex technologies it is reliant mostly on imports from the west like the US, Europe, the UK, China, Japan and Singapore, it added.

While importing quality and advanced medical technology is not difficult, one growing concern is the increasing value of imports from China, MTaI said.

Despite border disputes and rocky diplomatic ties between the two countries, the imports from China of major categories of medical devices increased by 57 per cent from USD 327 billion in FY20-21 to USD 515 billion in FY 21-22, which is an alarming increase from a rival nation, it added.

''India's vision of attaining self-sufficiency in the MedTech sector through the introduction of incentivizing schemes like Production Linked Incentive (PLI), is worthwhile but will have its own gestation period. Therefore, India should urgently explore alternatives to imports from China,'' MTaI Chairman Pavan Choudary said in a statement.

One route to achieve this is to be self-sufficient in segments where India has or can develop manufacturing capacity in the near term, MTaI noted.

For segments where India can acquire the capacity to produce only in the mid to long term, India can adopt a two-pronged approach: meet its needs by sourcing from the West, who have historically been reliable partners, and adopt a China+1 strategy for sourcing from Asia, it added.

“The China + 1 alternative for imports from Asia could be Japan, as both India and Japan have a rich history of amicable bilateral relations, similar market & political systems and a shared history of peace,'' Choudary said.

If an attractive FTA is signed with Japan, it could help India in getting technical expertise and financial aid in healthcare social impact programs, he claimed.

As per MTaI, India imported various kinds of products like ultrasound scanning, pulse oximeter, flame photometer, surgical instruments and appliances from China between 2017-2022.

India's imports from Japan for medical devices stand at around USD 131 million, while China's imports for these categories alone are around USD 887 million over the last five years.

''Renewing the FTA with Japan, last implemented in 2011, would be a good starting point to facilitate Indo-Japan MedTech collaboration. Lower customs duty and a simpler customs clearance process for trade with Japan would encourage MedTech players and hospitals to shift their sourcing base for advanced technologies from China to Japan,'' Choudary said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)