India is the new frontier for growth for American medical device companies. This is driven by
- A spiral caused by a growing middle class whose income is also rising
- Increased presence of third party insurance companies and employer paid health
- A massive government program to provide basic hospital care for the poorest 500 million Indians
The Indian market for medical equipment and diagnostics is estimated to be ₹ 89,171 crores in 2020-21, representing a 15% increase over the previous year’s 8% growth. The diagnostic imaging market is expected to grow at a CAGR of 13.5% between 2020 and 25.
In India, the healthcare and medical device industries have risen dramatically during the previous decade. After Japan, China, and South Korea, India is the fourth biggest Asian medical device market and is in the top 20 medical device markets worldwide.
Imports from nations such as the United States, China, and Germany account for 75-80% of the Indian medical equipment market by revenue.
Trade Opportunities with the USA:
In comparison to other industries, India imports approximately 75% of its medical gadgets, and entry barriers are limited to some categories. Many types of medical gadgets continue to be imported into India, notably higher-end items such as cancer diagnostics, medical imaging, ultrasonic scanning, and PCR technology. Imports are fast increasing as world-class hospital companies such as Max, Hinduja Group, Fortis, and Apollo construct high-end facilities and open India to medical tourism, which currently contributes $2 billion to the Indian healthcare market.
A supply of equipment and medical consumables will also present important opportunities for US firms. Several major U.S. suppliers of medical equipment and supplies have established Indian operations to serve this expanding market.
Top Foreign Medical Devices Companies in India:
- Johnson & Johnson (which is present in medical devices, pharma and consumer producs. However that are the largest player in medical devices alone)
- Novartis AG
- Abbott Laboratories
- Medtronic PLC
- Baxter International
- Danaher Corporation via its subsidiaries
- GE Healthcare
- 3M Company (via its medical disposables businesss)
- Siemens Healthineers
- Stryker Corporation
- Zimmer Biomet
- Boston Scientific
- Toshiba Medical
- Philips
Market Growth Drivers Include:
The government of India, as well as various private groups, have taken steps to enhance the country’s public health. Such cooperation has resulted in the expansion of the healthcare sector, enablingthe medical equipment industry in India to thrive.
The Indian government has permitted 100 percent FDI in the medical device business. Inflows of FDI are predicted to stimulate R&D efforts and manufacturing advancements, which would assist drive the expansion of India’s medical devices industry.
Impediments to Market Growth:
In some categories such as mainstream cardiac stents and certain orthopedic implants, India has imposed price controls.
India has its own regulatory agency and regulations have been streamlines over time. But some innovative products require specific clinical trials in country and this can slow the entry of some devices that are badly needed by Indian patients
