BioSpectrum India Magazine November issue BioSpectrum India Magazine | Page 27

www.biospectrumindia.com
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November 2017
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BioSpectrum
COVERStory
INDIAN MEDICAL DEVICES MARKET
The Indian medical devices market is currently
valued at around $10 billion and has been growing
at an average rate of 15 per cent for the past couple
of years. As per the market estimates, the industry is
expected to reach close to $25 billion by 2025.
Indian medical device industry comprises of over
800 Indian manufacturers of which close to 65 per cent
of companies have turnover of over Rs 10 crore ($1.5
million) and 2 per cent companies with a turnover of
more than Rs 500 crore ($73 million).
Source: www.ibef.org
FOREIGN DIRECT INVESTMENTS
(FDI) INFLOWS
As per official data, the
medical and surgical equipment
sector received a total of
Rs 8,344 crore (approx. $
1452 million) Foreign Direct
Investments (FDI) inflows between 2000 and 20162.
In 2013 alone, the FDI inflow was almost Rs 920 crore
(approx. $ 138 million). In 2015, this number jumped
to a new high of Rs 1,019 crore (approx. $ 153 million).
Source: http://www.nishithdesai.com
Sharing his views Viral
Gandhi, Chairman, Voxtur
Bio said, “The “Make in India”
campaign could spawn the
creation of a home-grown medical
device industry with reduced
or no dependence on imports.
If India is to assert its rightful
position as a powerful player
in the global medical devices
industry, impetus needs to be placed on developing
localized technologies to design high-tech devices. With
the domestic medical devices industry at an inflexion
point, the “Make in India” initiative could change the
operational paradigms of the sector and fast-pace its
indigenization. He further said that to enable medical
technology companies to create manufacturing hubs
in the country, the government should provide players
in the domain with a tax holiday. This will not only
help the players to build and consolidate critical core
competencies but also benefit from economies of scale.
Re-organizing the operational algorithms of the domestic
device sector remains a key challenge area which needs to
be overcome by the government by allocating a fair share
of the “Startup India” funds to the industry.
Potential Opportunities
As per the recent survey by Finpro, the Indian healthcare
pyramid consists of approximately 1.6 lakhs of primary
healthcare centres, 10,000 secondary healthcare
hospitals and about 2000 tertiary hospitals. In spite
of more than 75% of the qualifying Doctors practice in
the urban areas, there are ample opportunities in the
rural areas as well. The growth drivers of the Indian
IVD market is by the increase in healthcare awareness
and demand for quality healthcare and increase in
corporate hospitals, and laboratory services, and
expansion of diagnostic services to the rural areas.
With more and more people getting educated and
the availability of several insurance coverage, the
healthcare sector is bound to expand with leaps and
bound. Opportunities are plenty but challenges are
more. Healthcare industry particularly diagnostics is
growing fast at the rate of 15-20% on CAGR. Newer
technologies are being introduced or being developed.
This is particularly more in the areas of Point of Care
(POC). “Pretty soon we may be able to perform many of
the diagnostic tests sitting at home by using our smart
phones with some attachments. Challenges are with
the competition and financial supports for the product
developments. Unlike software or e-commerce, many
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