India Medical Device Sector Overview
The medical devices industry in India consists of large multinationals as well as small and medium enterprises (SMEs) growing at an unprecedented scale. The current market size of the medical devices industry in India is estimated to be nearly $11 bn.
The Medical device sector has been growing steadily at a CAGR of 15% over the last 3 years.
100% FDI is allowed under the automatic route for both brownfield and greenfield setups. Strong FDI inflows reflect the confidence of global players in the Indian market.
The Medical Device industry is highly capital intensive with a long gestation period and requires development and induction of new technologies. It also requires continuous training of health providers to adapt to new technologies. Most of the hi-tech innovative products originate from a well-developed eco-system and innovation cycle which is yet to be fully developed in India.
The Government of India has taken several steps to ensure the growth of a vibrant ecosystem of medical devices manufacturing in India over the past 5 years, states have committed to set-up dedicated industrial parks where efficient domestic manufacturing at lower costs. The State Government of Himachal Pradesh, Tamil Nadu, Madhya Pradesh and Uttar Pradesh have been given “in-principle” approval to develop Medical Devices Parks & create a robust ecosystem for medical device manufacturing in the country.
The medical devices industry in India is poised for significant growth in the next five years, with the market size expected to reach $50 bn by 2025. Hence, the future of the medical device industry in India is quite promising.