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THE INDIAN MEDICAL DEVICES INDUSTRY

HE Indian medical devices indus- Figure6: Major growth drivers of the Indian medical devices industry
try was valued at $10 billion in 2017
Tand is expected to reach $25 billion
by 2025, growing at an average annual rate Increase in healthcare
of 15 percent.3 In terms of market size it expenditure
is among the top 20 in the world and also Chronic lifestyle
fourth-largest in Asia following Japan, Medical tourism diseases
China, and South Korea. As per a recent
KPMG report, the Indian medical devic-
es industry is expected to become one of Penetration of DEMAN Aging
the top five markets by 2030.4 Owing to its health insurance D population
high growth potential, this sector is expect- DRIVERS
ed to attract significant investment in the
future. Hence it has been proclaimed as the Higher disposable Technological
Sunrise segment of the healthcare industry. income advancement
There are several factors that are cur-
rently driving the growth of this market in
India such as increase in public spending
on healthcare, rising income and innova- Table1: Major medical devices clusters
tion in healthcare technology. State Product segments

Structure of the industry Haryana Medical consumables, Dental equipment
The medical devices industry is highly Delhi Medtech innovators
fragmented with a significant number of Tamil Nadu Diagnostics, Critical life support systems,
MNCs dominating the business. However, Ophthalmology
manufacturing is mostly limited to SMEs Karnataka Insulin pens, Skanray, Bigtech labs
whereas the MNCs are mostly involved in
distribution of imported devices. It needs Gujarat Stent manufacturing
to be mentioned that the market is mostly Source: https://www.advamed.org/sites/default/files/resource/medical_industry_in_india_-_the_evolving_
dominated by imported products which landscape_oppurtunities_and_challenges_white_paper.pdf
comprise around 80 percent of the total Figure6: Trade trends for Indian medical devices sector ($ million)
domestic sales. Also most of the device
exports pertain to the consumables and Export Import Trade balance
disposables segment. Technology-wise the 5.29
industry is still at a nascent stage with ma- 4.13 4.67
jor production happening in the consumer 3.95
durables segment followed by diagnostic
imaging.
In terms of manufacturing the industry 1.09 1.20 1.27 1.54
has over 800 manufacturers located in five
clusters across the country, only 10 percent
of whom have a turnover of more than $8 2015-16 2016-17 2017-18 2018-19
million. Apart from these the government
has also aimed at building medical devices
parks to encourage manufacturing. Some -2.86 -2.93
of the major medical devices clusters are -3.40 -3.75
listed in Table1. Source: DGCI&S

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