The Medical Devices and Equipment industry, valued at US$ 2.5 billion contributes only 6% of India’s US$ 40 billion healthcare sector. Moreover, it is growing at a faster annual rate of 15% than 10-12% growth seen in the health care sector entirely. The Medical Equipment Industry is quite wide with >14000 different products. The products range from wound closure pads to stents and IVD machines of medical devices. Further, it can be reasonably said that Medical Electronics is an area, where Electronics and Information Communication Technology play a decisive role.
Promotion Of The Sector By Government
The government is expected to develop a regulatory structure leading to quality products being developed by manufacturers. However, the current regulatory structure lacks active participation developed by manufacturers. However, the current regulatory structure lacks active developed by manufacturers. However, the current regulatory structure lacks active matter of time. The last few years have seen an increase in domestic manufacturing of medical equipment. With impetus from Government of India schemes, India is beginning to look forward to being recognized as a manufacturing destination for sophisticated medical technology.
The Private and Foreign Investments International companies in this field are also using India as a manufacturing base by either setting up facilities of their own or by acquiring domestic manufacturers. Some examples include 3 M’s manufacturing plant in Pune, Becton Dickinson’s manufacturing facility in Haryana. Hollister’s setting up manufacturing facility in India and Philips Medical Systems’ acquisition of Medtronic’s and Alpha X- Ray Technologies. Medical Technology Parks have been proposed by the Government of India in addition to the existing parks to encourage domestic manufacturing of medical equipment. FDI inflow will spur R&D and manufacturing innovations, in turn increasing the efficiency and effectiveness of medical electronic products. Advancement of medical electronic product quality and associated successful diagnostic rates are expected to create a spurt in adoption.
Role Played by Major Competitors in the Medical Technology Sector Major Competitors in the Medical Technology Sector Medical Technology companies are undertaking a lot of innovations out of India, both for the domestic as well as the overseas markets. Transasia Biomedical has developed in vitrodiagnostic equipment through its R&D base in Mumbai. The Sushrut Adler Group has developed an external fixator for the Indian market. Johnson and Johnson has developed a knee implant suitable for the Indian market as well as a reusable stapler for use in surgeries at price point,which are amenable to the Indian Market. Philips Healthcare is using its recent acquisitions in India to develop and launch a low cost Cath Lab for the Indian market. Roche Diagnostics has developed a screening device for cardio vascular diseases which is suitable for use in rural settings.
1.Low Penetration-Despite the strong growth of the Indian medical industry in the last few years, industries is plagued by low penetration. The per capita spend on medical technology in India is approximately US $ 2 as compared to US$ 5 in China and US $231 for Germany.
2.Affordibility-Since most of the country population can’t afford to pay for health care,providers in turn pay care full attention to cost in making their purchasing decisions.
3.Acessibility-Inequittable access to healthcare delivery has been a key issue with the Indian health care system. Public healthcare system is inefficient and inadequate too,with low investment in infrastructure, including devices and equipment.
4.Awareness-While there is a growing awareness in the country but still a large part of the country in rural sector is unaware about the latest advances.
5.Availibility-Lack of innovation has resulted in scarcity of cost effective products and solution in the medical technological industry. There is a huge gap between what the Indian consumer wants and what is being supplied.
Indian medical technology sector is growing but the per capita spend of US $2 is significantly lower than that of the developed countries and also compared to other emerging economies. Demand in India is predominantly driven from the major cities and penetration in smaller cities/rural/town areas has remained low due to lack of these 4A’S Affordability, Accessibility, Awareness and Availability).