Emerging Opportunity for Medical Equipment Manufacturing in India

 

FDI Inflows in the Medical Equipment Industry

100% Foreign Direct Investment (FDI) is allowed in the medical equipment industry in India for both brownfield and greenfield setups. Market size is to be expected Rs.37,021 crores ($ 50 bn) by 2025. Higher volume of FDI inflow shows the confidence of investors globally in the Indian market. Greenfield is set up when a company builds on its own from the ground up with brand new facilities and when a company purchases or leases an existing facility and gets developed, it is called Greenfield set up.

Self-reliant India

The Prime Minister, Mr. Narendra Modi, started the campaign self-reliant India or Aatma Nirbhar Bharat in this pandemic era that brings several opportunities to many industries in India, prominent is the healthcare industry.

Facts About Medical Equipment Market In India

You can get an idea of emerging opportunities for medical equipment manufacturers in India with the following facts about Medical equipment Indian market:

●      India's medical equipment market is one of the top 20 markets globally.

●      It is one of the fourth largest markets in Asia.

●      The Medical Devices Amendment Rules of 2020 has brought all medical devices under regulation as drugs in India.

●      The current market size of the Healthcare equipment manufacturers is approx Rs.8,145 crores ($ 11 bn).

●      Healthcare Industry companies in India export 75% - 80% of healthcare equipment, consumables and implantable electronic devices to different countries. It will reach Rs. 7,428 crores ($10 bn) by 2025.

Medical Devices Financing 2020

The government has implied funds in the industry to remove budget restrictions that will help manufacturers to reduce the manufacturing cost of medical devices.

●      Common Infrastructure Facilities - Rs.400 crores

●      Grant-in-aid for states - Rs.100 crore

Opportunities in the Healthcare Manufacturing Industry

A survey shows that the power has been relocated from the pharmaceutical to the medical device industry. Market entrants are seeing the following opportunities in the medical equipment industry:

Partnerships and alliances 

The medical industry is attracting increasing amounts of investments. There is abundant potential to surge profits in the medical devices manufacturing sector as it brings partnership opportunities from overseas. 

Technology And Security

The security breach in the healthcare computer systems in the year 2017 was an alert for all the nations in the world. A hacker can access the medical devices and evacuate the battery system or issue improper cardiac commands. Technological advancements are constantly evolving as the cybersecurity of medical devices has become more of a concern.

Increasing Demand 

The worldwide pandemic COVID and rapid increase in health awareness are leading to increasing demand for preventative healthcare products. Healthcare products manufacturers are increasing considerable productivity to meet the national and overseas demands.

Product Design Development

There is an increasing emphasis on continuous innovation and design simplicity driven by software and technologies. Government is supporting new product designs and development.

Increased Legal Certainty

Mandated medical device regulations bring even more credibility and simpler administrative tasks to the manufacturing sector and increased legal certainty. There is increased legal certainty in the overall medical device system.

Technology and Manufacturing Challenges

It has been discovered that in today’s digital world around 60% of healthcare consumers are using technology to track their health. Data is being collected using technology. The data being collected enables the manufacturer to produce more effective and the required number of innovative devices. Data-driven decision-making is more impactful to inspect the conditions and to manage the supply chain also. A top medical device entity has reported that there is an annual cost reduction of $1.2 million within a year digital transformation solutions such as electronic trial master file (eTMF) system. 

So, you must have understood how the medical sector is working in this challenging time and evolving various opportunities.

Source: https://www.investindia.gov.in/sector/medical-devices