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Medical Device Sector Exponential Growth Ahead

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Medical Device Market Size, Demand and Investments by Government to boost Growth

Twitter Handle: @shuchi_nahar 
Indian medical devices market stood at Rs. 77,539 crore (US$ 11 billion) in 2020. The market is expected to increase at a CAGR of 35.4% from 2020 to 2025, reaching Rs. 352,450 crore (US$ 50 billion). Moreover, it is growing at a faster annual rate of 15% than 10-12% growth was seen in the Healthcare sector in its entirety. A rise in the number of hospitals and the increased requirement for healthcare facilities creates a need for sophisticated devices and equipment, which can provide accurate treatment to individuals.

The Medical Equipment industry is quite wide with > 14,000 different products types, as per the Global Medical Device Nomenclature (GMDN). The products range from wound closure pads to stents and IVD machines of medical devices. Further, it can be reasonably said that Medical Electronics is an area, where Electronics and Information Communication Technology play a decisive role.
Shuchi Nahar's Weekend Blog
India is among the top 20 markets for medical devices worldwide and its medical devices market is expected to increase by a 35.4% CAGR to reach Rs. 352,450 (US$ 50 billion) in 2025 from Rs. 77,539 crore (US$ 11 billion) in 2020.

The medical devices sector in India comprises largely multinationals, small and midsized companies.
The Government of India (GOI) has commenced various initiatives to strengthen the medical devices sector, with emphasis on research and development (R&D) and 100% FDI for medical devices to boost the market.

India has a 75-80% import dependency on medical devices, with exports at Rs. 14,802 crore (US$ 2.1 billion) in 2019 and is expected to increase at a CARG of 29.7% to reach Rs. 70,490 crore (US$ 10 billion) in 2025. 
Shuchi Nahar's Weekend Blog

The US, Germany, China, Brazil, Iran, etc., are a few key countries that import Indian medical devices. Gujarat, Maharashtra, Karnataka, Haryana, Andhra Pradesh, and Tamil Nadu are the manufacturing hubs for medical devices in India.

Medical devices consist of instruments, apparatus, machines, implants, in-vitro reagents among others that are intended for use in the diagnosis of other conditions. These devices are also used in the process of cure, treatment, or prevention of disease in man or other animals. Large- and small-scale medical device companies play a role in the development of new medical devices. Thus, owing to these developments medical device industry is projected to witness significant growth in the upcoming years.

The rising number of medical facilities will boost the demand for medical devices in the market. Various government initiatives such as ‘Production Linked Incentives (PLI) Scheme for Medica Devices 2020’ and establishing medical parks will augment demand.
The Indian medical device is driven by 75- 80% imports from countries such as the US, China, and Germany.

The government is planning to develop/create a manufacturing base for medical devices in India and encourage exports, as it recognizes this sector as a sunrise sector.
Shuchi Nahar's Weekend Blog
Major Investments in Medical Sector
The medical Device sector has attracted significant investments over the years. The government plans to invest significantly in establishing medical devices parks in four states of India - Andhra Pradesh, Telangana, Tamil Nadu and Kerala.

100% FDI will boost investments from private companies in this sector to further incentivize investments in the manufacturing of medical devices, in May 2020, the Central Government of India announced incentivization plans of at least Rs. 3,420 crore (US$ 4.9 billion) over a period of five years and these funds will be offered to manufacturers only if they invest in set-ups to produce key medical devices.

In May 2020, AiMeD (an Umbrella Association of Indian Manufacturers of Medical Devices) invited Japanese investors who were interested in setting up a manufacturing base for medical devices (including medical electronics & IVD) in India. As a part of the initiative, India is targeting 1200 technical collaborations with Indian investors for JPY 600 billion (US$ 5746.7 million) and above, 200 joint ventures with foreign investors for JPY 200 billion (US$ 1903.8 million) and above, and 50 MNCs for JPY 200 billion (US$ $ 1903.8 million) and above.

In September 2020, Thiruvananthapuram-based Sree Chitra Tirunal Institute for Medical Sciences and Technology announced that it will collaborate with the Kerala government to set up an Rs. 260 crore (US$ 35.44 million) medical devices park in Thonnakkal (Thiruvanthapuram).
Sources: GMinsights
-IBEF
-KPMG
-Nureca
-Polymedicure
Disclaimer: The information provided on Shuchi Nahar’s Weekend Blog is for educational purposes only. The articles may contain external links, references, and a compilation of various publicly available articles. Hence all the authors are given due credit for the same. All copyrights and trademarks of images belong to their respective owners and are used for Fair Educational Purpose only.

Twitter Handle: @shuchi_nahar

Comments

  1. Rajat BanerjeeJuly 25, 2021 at 8:12 PM

    Very nicely written. Well-researched. Thank you. Would you mind to name a few Indian companies in this space?

    ReplyDelete
  2. Universal MachinesAugust 4, 2021 at 3:36 PM

    This comment has been removed by the author.

    ReplyDelete
  3. Universal MachinesAugust 4, 2021 at 3:38 PM

    Thank You for the informative blog. We manufacture and supply highly durable and power saving meat cutting machine in coimbatore

    ReplyDelete
  4. Legal & Compliance ServicesDecember 9, 2024 at 3:33 PM

    Great article! Understanding the process of obtaining a medical device import license India is crucial for ensuring compliance and seamless operations in the healthcare industry. Your detailed explanation of the regulatory requirements and step-by-step guide is very helpful for businesses looking to enter the Indian market. Thanks for sharing this valuable information!

    ReplyDelete

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