By addressing regulatory concerns, enhancing supply chains, fostering R&D, and investing in infrastructure and skills, India can emerge as a global leader in medical devices’ manufacturing. The potential for exponential growth is within our reach.
Healthcare is the primary right of each citizen. Our healthcare needs should be covered by the state. Unfortunately, India’s healthcare infrastructure is so poor, and government insurance coverage is so limited and underpenetrated, that a middle class family ends up spending a hefty amount. We all remember how Covid exposed the heath infrastructure of India and the country’s far from readiness to handle such pandemics.
India now has a population of over 1.4 billion, surpassing China, and is home to 18% of the world’s population. According to the Human Development Report 2020, out of 167 countries, India ranks 155th on bed availability per 10,000 population. India has just 5 beds per 10,000 people, compared to the WHO recommendation of 30 beds. Our government spending on healthcare is only 3% of GDP, compared to the world average of 11%. This clearly indicates that India has a huge deficit of hospitals and medical devices.
The primary drivers of the medical device industry are described below.
The current total available market (TAM) for medical devices in India is US$12 billion and is expected to grow annually at 12.5%. It is projected to reach US$40 billion in a decade’s time, which is a higher growth rate than the global average of 5% (IBEF). The exports of medical devices from India stood at US$2.9 billion in FY22 and are expected to rise to US$10 billion by 2025.
The growing per capita income of India, focus on preventive care and wellness, and the aging population will further contribute to the demand for healthcare delivery.