While the government is egging on multinational medical device manufacturers to make in India, domestic manufacturers say they are a neglected lot. Regulations, lack of government support, tax structure and price control are squeezing margins and growth, besides competition from MNCs. The Rs 40,000 crore industry is 80 per controlled by MNCs. The remaining Rs 8,000 crore is shared between thousands of unorganised Indian companies who make low-end products ranging from hospital beds to cotton buds.
Only two Indian companies have a turnover above Rs 500 crore - Chennai-based Trivitron and Transasia Biomedical. The largest player Trivitron is operating at less than 10 per cent capacity, says Chairman and MD G.S.K. Velu. Another 10 companies have a turnover ranging from Rs 200-250 crore and another 25 companies have turnover of above Rs 100 crore. In contrast, China has a system to promote local manufacturing. India should also enforce tariff barriers, trade protection provisions and give incentives for research and development.