Thanks to our Indian Prime Minister for his kind support for Make In India drive & Policy.
Medical devices industry in India has the potential to reach $50 bn by 2025
Medical devices are segregated into six major segments:
Consumables & Disposables include needles and syringes, etc
Diagnostic Imaging includes MRI, X-Ray, Ultrasounds, etc
Dental Products includes dentures, braces, etc
Orthopedics & Prosthetic include knee implants, artificial joints
Patient Aids include hearing aids and pacemakers, etc
Around 65% of the manufacturers in India are mostly domestic players operating in the consumables segment and catering to local consumption with limited exports. Large Multinational Corporations lead the high technology end of the Medical Devices market with extensive service networks.
There are 750–800 domestic Medical Devices manufacturers in India, with an average investment of $2.3–2.7 mn and an average turnover of $6.2-6.9 mn.
The manufacturing is developing in its scale and geography: there are six Medical devices manufacturing “clusters” in the country .
Clusters have “Medical Device Parks” developing around them: states have committed to set-up dedicated industrial parks where efficient domestic manufacturing at lower costs. In 2019, Andhra Pradesh, Telangana, Tamil Nadu, and Kerala have got in-principle approval from Government of India for new medical devices parks.
India among the top-20 markets for medical devices in the world
Market size expected to reach $ 50 bn by 2025
India is the 4th largest market for medical devices in Asia.
Nascent industry Importing more than 90% of sophisticated devices, the domestic industry has a huge scope for R&D capacity
Demographics Ageing population, life expectancy to cross 70 years by 2022, thereby requiring home-based healthcare devices
Increasing disposable income 8% Indians will earn more than $ 12,000 p.a. by 2026
Industrial Parks 4 medical devices parks in India are under-development
Government commitment New rules and regulatory processes for the medical devices sector, 100% FDI allowed, measures to correct unfavorable duty structure undertaken
The six medical device clusters are into following states divided into zones as below :-
Western India = Gujarat [ @ Ahmedabad & Vapi ] For Pharmaceuticals
& Maharashtra ( Mumbai , Pune, Nagpur ] For Pharmaceuticals
North India = Haryana = [ Chandigarh, Ballabhgarh, Faridabad, Manesar ] For Low end medical consumables.
South India = Karnataka [ Bengaluru ,Mangalore ] For Insulin Pens, Stents & Implants ,Medical Electronics.
Andha Pradesh & Telengana [ Hyderabad, Vishakhapattanam, Sultanpur ] For Medical Electronics.
Tamilnadu [ HLL Medipark, Chennai ] Medical Electronics.
East India = So far NIL
North East India = So far NIL
With the above figures, with 100% FDI approved now, many investors are expected to come specially when you have the above favorable data about India.
Time to think about approaching both Central & State government for approval of few more clusters in East & North East if possible. Medical devices call for lots of plastics parts manufacturing and these can be a good opportunity to invest into plastics component manufacturing and supply to both local and Multi national companies.
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