National Institute of Pharmaceutical Education and Research [NIPER] has come out with a report on medical devices and supplies in India. The market is estimated to touch $1.7 billion in 2010 with an annual growth rate of 23%. One more market size figure spoken about is $3 billion. Medical diagnostic equipment, surgical equipment, and imaging & electronic treatment devices form the major crux of the industry.
Trends
Indian medical devices supply is heavily dependant on the imports from other countries like the US, Japan, the UK, France, Finland, and Germany. It is estimated that around 50% of India’s medical devices sales is through imports. Most imported products have high gross margins. Currently, the high value imported products include cancer diagnostic, medical imaging, ultrasonic scanning, plastic surgery equipment and polymerase chain reaction technologies.
Domestic production is mostly restricted to low technology products like surgical textiles.
The level of R&D spending in the medical device and diagnostics industry, as a percentage of its sales, has been consistently increasing from 5.4% in 1990, to 8.4% in 1995, to 12.9% post 2000.
Meanwhile, the medical devices market in India is becoming increasingly competitive due to:
1. Low entry barriers (for MNCs),
2. Increasing number of players and
3. Expanding consumer base.
Trends
Indian medical devices supply is heavily dependant on the imports from other countries like the US, Japan, the UK, France, Finland, and Germany. It is estimated that around 50% of India’s medical devices sales is through imports. Most imported products have high gross margins. Currently, the high value imported products include cancer diagnostic, medical imaging, ultrasonic scanning, plastic surgery equipment and polymerase chain reaction technologies.
Domestic production is mostly restricted to low technology products like surgical textiles.
The level of R&D spending in the medical device and diagnostics industry, as a percentage of its sales, has been consistently increasing from 5.4% in 1990, to 8.4% in 1995, to 12.9% post 2000.
Meanwhile, the medical devices market in India is becoming increasingly competitive due to:
1. Low entry barriers (for MNCs),
2. Increasing number of players and
3. Expanding consumer base.
Prominent MNC’s operating in the Indian market include B Braun, Becton, Dickinson and company, Bayer, Johnson and Johnson, Phillips ,Roche, Siemens and GE.
Some of the Indian players present in the sector include, BPL Healthcare, Godrej Healthcare, Nicholas Piramal India Ltd., Opto Circuits India Ltd. and Advanced Micronic Devices Ltd.
Some of the Indian players present in the sector include, BPL Healthcare, Godrej Healthcare, Nicholas Piramal India Ltd., Opto Circuits India Ltd. and Advanced Micronic Devices Ltd.
Growth Drivers
The report lists the primary drivers boosting the growth of medical devices industry in India:
1. Affordability by patients,
2. increased awareness on health care,
3. improved hospital infrastructure and
4. the increased disease patterns
5. Investment in health infrastructure
Challenges
Despite strong growth, the medical devices market in India remains disproportionately small. It is ranked 20 in the world but with a very low per capita spending.
Major challenges facing the industry are:
1. India’s dependency on imports for supply of medical devices
2. Strict industry regulatory environment
3. Low level of healthcare insurance
4. Low level of healthcare facilities and awareness-especially in rural areas.
5. Unfavorable budgetary tax measures in addition to an already existing anomalous customs tariff structure
Experts feel that India has a lot to offer to the global medical devices market in terms of providing a low cost manufacturing base for complex and low-to-medium value medical devices.
The report lists the primary drivers boosting the growth of medical devices industry in India:
1. Affordability by patients,
2. increased awareness on health care,
3. improved hospital infrastructure and
4. the increased disease patterns
5. Investment in health infrastructure
Challenges
Despite strong growth, the medical devices market in India remains disproportionately small. It is ranked 20 in the world but with a very low per capita spending.
Major challenges facing the industry are:
1. India’s dependency on imports for supply of medical devices
2. Strict industry regulatory environment
3. Low level of healthcare insurance
4. Low level of healthcare facilities and awareness-especially in rural areas.
5. Unfavorable budgetary tax measures in addition to an already existing anomalous customs tariff structure
Experts feel that India has a lot to offer to the global medical devices market in terms of providing a low cost manufacturing base for complex and low-to-medium value medical devices.
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