Discover the opportunities and challenges ahead in the rapidly growing medical devices industry.
With the recent surge in COVID-19 cases across several states in India, the central and state governments are taking necessary measures to ensure the availability of resources such as medicines, ICU beds, medical equipment, and medical oxygen in hospitals. However, amidst this chaos, an important industry related to the healthcare sector has been overlooked – the medical device industry.
During the pandemic, this industry proved its worth by producing essential medical equipment like ventilators, RT-PCR kits, IR thermometers, PPE kits, and N-95 masks. However, most of the local production in India still falls at the low end of the technology value chain. The good news is that this presents a massive opportunity for the country to strengthen its medical device manufacturing capabilities and develop more innovative products locally.
Today, let’s look at this rapidly growing industry, explore its potential, and understand its impact on healthcare.
The medical devices segment comprises a vast range of equipment and machines that aid in the prevention, diagnosis, and treatment of diseases.
This segment is further divided into six subsections based on the type of medical application.
- Medical devices such as pacemakers and cardiology devices are used to treat heart conditions.
- The diagnostic imaging segment covers machines and equipment used for diagnosing a wide range of medical conditions.
Apart from this, orthopaedic applications, devices for eye-related conditions, and various products for general and plastic surgery are included in this segment.
The government statistics for 2022 show that there are around 750-800 home medical device manufacturers in India, with an average investment of $2.3-2.7 million and an average turnover of $6.2-6.9 million. Despite this, there is still a significant gap between the demand and supply of medical devices in India.
According to the India Brand Equity Foundation (IBEF), India relies on imports for approximately 70-80% of its medical devices, highlighting a tremendous opportunity for the Indian medical device industry to grow and become self-sufficient.
Challenges at a Glance
The medical device industry is highly capital-intensive, and there is a constant need for investment in scientific facilities to ensure that medical devices meet safety and quality standards set by regulatory bodies. In addition, healthcare providers need continuous training to keep up with new technologies and ensure that they use medical devices safely and effectively.
Developing and testing new medical devices require significant investments in research and development, manufacturing, and clinical trials.
Initiative Taken By the Government of India
Despite the constraints, policies such as the Production Linked Incentive (PLI) scheme, export promotion, incentives for research and development, and support for innovation can significantly boost the medical device industry in India. These policies are crucial to reducing the country’s dependence on imports and strengthening the local manufacturing capabilities of medical devices.
To further promote the growth of the medical device industry, the Government of India has approved the establishment of medical parks in four states. These parks will provide a platform for medical device manufacturers to share knowledge, collaborate, and undertake research and development activities.
In addition, in July 2022, the government prepared a draft for new drugs and medical devices.
The growth potential of India’s medical device industry is significant, as mentioned by Union Health Minister Mansukh Mandaviya, who predicts that it could reach $50 billion by 2030. This growth would represent a substantial increase from the estimated revenue of $5.99 billion for the medical device segment in India in 2023, as per a Statista report.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!