“Low research and development (R&D) spends, lack of innovation promotion including low medical device funding from Department of Science and Technology/Department of Biotechnology, inadequate quality standards and others are significant challenges faced by the industry.”
If the aforesaid challenges are addressed effectively and efficiently, the medical device industry in India is expected to touch $5 billion mark thereby clocking a compounded annual growth rate (CAGR) of about 15 per cent, further noted the ASSOCHAM study.
“The Indian medical device industry is highly fragmented with close to 1000 domestic firms primarily manufacturing low technology products,” the study added. “However, of late companies have expanded operations to produce cost-effective, medium-end medical devices thereby signaling a paradigm shift in the industry players’ approach as more and more Indian companies are becoming technology intensive thereby producing high quality and cost-effective medical devices.”
The present landscape in Indian medical device industry is primarily import driven with imports contributing close to 75 per cent of the market, noted the ASSOCHAM study. “The domestic market caters to low-value disposables and supplies space, whereas importers dominate the costly and high-end medical equipments with extensive service networks.”
Owing to huge cost pressures and competition from China and Asia-Pacific countries, Indian companies have started transitioning up the value chain into the ‘medium technology’ segment, highlighted the ASSOCHAM study.
“This augurs well for medical devices’ future in India as this would imply technology innovation and high margin product portfolio and the ‘high value’ space would still be governed by MNCs and these products would be primarily imported into India.”