The Indian Healthcare Industry has grown to one of the largest sectors in the country both in terms of revenue and employment. The Industry is expected to touch $160 billion by 2017 accounting for about 4.2% of the GDP. The Medical Device Industry is currently in the spot light with the industry and government looking towards foreign investments and technological innovations for advancement of the Indian industry.

For industry statistics, industry events and more news on the Healthcare Industry in India, click Healthcare Industry Expertise.

Ongoing digitalization in Healthcare, medical tourism and AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homeopathy) treatment spurt the growth of India’s Healthcare Industry. The government has budgeted around $28 billion on public health spending for FY2017-18. This year, the central government is expected to fund 28% of the total public expenditures on health, states will contribute the remaining 72%. With Government spending on health remain low; the public is increasingly turning to the private health sector. The private Healthcare Industry will experience a steady growth.

In this regard, the World Bank, think tank Niti Aayog and the Health Ministry have proposed a public-private partnership model to provide diagnosis and treatment for three non-communicable diseases in cardiac sciences, oncology and pulmonary sciences in non-metro cities. According to the proposal, each state would identify six facilities in order to test the viability of the model which is said to run in district hospitals in Tier 2 or 3 cities. In a response to criticism, a ministry official said: “Treatment of non-communicable diseases is expensive and is often unavailable at district level hospitals. The model contract has been drawn with a view to make such sophisticated services available to patients at local levels and at a government determined price.”

The Indian Medical Devices market is the 4th largest in Asia and is rapidly growing. Currently valued at around $4.9 billion, around 75% of the Medical Devices market in India is imported. In order to support the industry, the Federation of Indian Chambers of Commerce & Industry (FICCI) suggested the government to look at a 4 pillars medical devices policy.

  • Prioritizing on Universal Health Care Access by careful evaluation based selection of certain targeted medical devices that can be manufactured in India under the Make in India program
  • Focus on building India’s global medical devices export competitiveness rather than purely seeking import substitution
  • Adopting a sub-segmented policy approach for medical devices into simple engineering and complex engineering, and apply distinct policy treatment
  • Facilitating an ecosystem that supports innovation

The Medical Electronics Devices Sector (a sub-sector of the Medical Devices Industry) is relatively small in India, and currently contributing less than 6% of the Healthcare Market.  However, the sector has constantly been growing in recent years and is expected to reach $7 billion by 2020, becoming more attractive for domestic as well as international manufacturers. There is a huge growth potential due to the rapid digitalization of the Healthcare Sector as well as lacking domestic manufacturing.

With growth rates of 22-25%, Medical Tourism is booming in India. The industry is expected to double its size from $3 billion in 2017 to $6 billion by 2018. Rising Private Healthcare spending, awareness and demand for quality Healthcare, and expanding medical tourism calls for innovative and advanced Medical Devices. As part of the ‘Make in India’ campaign, the Medical Device Sector is looking towards self-sufficiency in the near future. Since India still lacks behind on manufacturing skills and capabilities, focus is on creating an attractive ecosystem for foreign investors who would being in advancements in the Industry.

For industry statistics, industry events and more news on the Healthcare Industry in India, click Healthcare Industry Expertise.