Medical Technology Association of India (MTaI) has said that medical technology industry has registered around 50-85 percent fall in revenue during April-June of FY21 with a decline in surgical procedures at hospitals due to Coronavirus Disease (COVID-19) situation. It said the government should consider reducing tax burden on medical devices in order to revive the sector.
Elaborating on the current situation, MTaI said elective procedures (surgeries) drive a large part of the demand for medical devices and the postponement has severely impacted the revenue streams of the medtech industry. It also said the estimated revenue downfall in the cardiology category is up to 60 percent in the first quarter of the financial year, while in the orthopaedic industry devices segment there is a revenue fall of around 85 percent. Similarly, it said the opthalmology sector has also recorded a fall up to 75 percent in its revenues during April-June. Even the critical care device segment fell to nearly half.
Due to the shrinking margins of the hospitals, it said the channel and service dealership networks, and sub-dealers are already experiencing significant workforce downsizing. It noted that so far the global medtech fraternity have heeded to the government's request of protecting the jobs of its workforce, even while facing significant financial blows. However, if the situation does not improve, these efforts may not be sustainable.
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