India is currently growing as a key market for medical devices and diagnostics. According to reports, emerging markets will play an essential role in the global medical device industry and India as an emerging market will continue to be important for the global Medtech industry. Current scenario: the untapped market?
India has seen growth in terms of the increase of hospitals as well as the medical devices market. According to a white paper by EEPC (Engineering Export Promotion Council) India , Medical device Industry in India, the Indian Medical industry is currently the fourth largest market in Asia and valued at `30, 000 crore. It is expected to grow at a Compounded Annual growth Rate (CAGR) of 15 percent.
The Indian medical device is currently fragmented with close to 1,000 domestic firms primarily manufacturing low tech products, whereas importers dominate the costly and high end medical equipment with extensive service networks.
However, domestic companies seem to be transitioning from producing devices in the low technology segment to the medium technology segment.
According to the CII-BCG report, currently the sector is import driven with more than 70 percent of the devices are exported and the sector remains highly underpenetrated contributing 7-8 percent of the healthcare spends compared to pharmaceuticals at 18 percent. The challenges: Perhaps the biggest drawback of the industry is the lack of recognition as a separate sector. It is currently included in the Drugs and Cosmetics Act 1940 and comes under pharmaceuticals. The passage of the drugs and amendments bill might be for the better.