India bears 17% of the world’s population and with it 20% of the global disease burden but only spends on about 1.3% of its GDP on healthcare. Indian Medical Device Industry is evaluated at around $5 billion and has been growing at a CAGR of 16% in the past 4 years. There are only 60 domestic Medical Device manufacturers with a revenue of $10 million. Therefore, the industry has high potential for investments.
India currently accounts for 1.3% of the global Medical Devices market of $335 billion and is projected to grow to $8.6 billion by 2020. In the year 2015, the investment in the Medical Equipment sector grew up to $161 million from the annual average of $60 million after the announcement of 100% FDI under the automatic route.
The Medical Technology Association of India (MTaI) constitutes multinationals companies like Johnson & Johnson, Bausch & Lomb, Boston Scientific, among others who have made significant investment and have R&D base in India. The association is considering to partner with the Indian Government to map out a growth plan for the Medical Device Industry by attracting more investments through the ‘Make in India’ campaign and by up-gradation and dissemination of technology. MTaI urges on quality, consistency and patient safety in the sector and appreciates the contribution of manufacturers in innovation and development of low cost basic devices for the domestic market as well as exports. They also believe the policy makers and regulators need to consider both domestic and international players while framing policies, thus, to ensure growth and success of ‘Make in India’ in the sector.
The multinational companies in the medical technology sector are urging authorities in India to remove restrictions on the import of pre-owned Medical Devices since the import of refurbished devices would help buying these at a lower cost and help to meet demands. Countries, such as UK, USA, Singapore and Japan already use refurbished Medical Equipment.
The Government recently approved land leases (330.10 acres) in Chennai for PSU HLL Lifecare for the local production of hi-end Medical Equipment. In an effort to promote local manufacturing at significantly lower cost, this will be India’s first Medipark project to manufacture Medical Equipment. The Medical Device manufacturing sector in India is at a very nascent stage and the creation of this Medipark would result in further development of this sector and reduce the imports dependency. Subsequently, this will generate more employment opportunities and affordable healthcare in the country. HLL will further sublease the land at subsidized rates for the Medical Device and equipment manufacturing industry to attract other prospective investors.
Recently, the world’s largest European Union (EU) certified body for all type of Medical Devices, TÜV SÜD, has announced a range of services for the medical services manufacturing sector in India. The organization will provide updated information to manufactures via modes like webinars, whitepapers and information fact sheets and invites all Medical Device manufactures in India to partner with them in order to improve their acceptability in the global market.
Fujifilm India is also planning to do business in the Medical Device sector aiming on both the domestic and export market. They are expecting a growth of 15% for Medical Equipment business. The company will launch high-end screening machines and will export their products to the global market.
If the Government and the Indian industry groups in the medical technology sector focus towards promoting business and technological development, the scenario for this sector will completely change in the coming 5 years. Considering the Medical Device market’s growth prospect, with the appropriate thrust and direction, the growth can proceed steeper and will result in an increased contribution to the country’s GDP.
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