For over 40 years, Tecnova has been helping global businesses establish and grow in India. We offer customized India-centric solutions, supported by a dedicated team of consultants. From family businesses to multinational corporations, we help companies navigate the Indian market and capitalize on its vast opportunities.
How Tecnova Helps
Tecnova provides expert guidance in market entry, business expansion, local manufacturing, and product sourcing. With our expertise, we ensure smooth regulatory compliance and strategic partnerships, driving your success in the Indian market.
Life Sciences are a category encompassing the wide range of industries related to biological sciences. By and large this industry is related to human healthcare, including pharmaceuticals, diagnosis, healthcare facilities, medical devices and policy making.
THE PHARMA STORY IN INDIA
The Indian pharmaceutical industry’s year-on-year revenue growth is back on track, as per top healthcare consulting firms in India. While the global pharmaceutical market stood at $934.8 billion in 2017 and will reach $1.17 trillion in 2021, the domestic industry was estimated at $33 billion in the same year.
India is the largest provider of generic drugs globally and caters to over 50% of global demand for various vaccines, 40% of generic demand in the U.S., and 25% of all medicines in the U.K.
OVERVIEW OF THE MEDICAL DEVICES INDUSTRY IN INDIA
The Medical Devices industry in India is presently valued at USD 5.2 billion and contributes 4-5% to the USD 96.7 billion Indian health care industry. Consulting firms in India have cited the following statistics that put India high up on the global map.
- The industry has steadily grown and witnessed a surge from USD 2.02 billion in 2009 to USD 3.9 billion in 2015 at a CAGR of 15.8%
- As per industry estimates, the Indian medical devices market will grow to USD 50 billion by 2025
- Currently, India is counted among the top 20 global medical devices market
- India is the 4th largest medical devices market in Asia after Japan, China and South Korea
- The estimated market size of the consumer and durable segment is USD 1404 million
HEALTHCARE IN INDIA
Ayushman Bharat is the largest government funded healthcare program in the world. Technology is playing a key role of equaliser in taking preventive healthcare to second and third wave of demography across geography and class.
Road Ahead for Healthcare
- By 2020, the healthcare information technology market is expected to grow 1.5 times from current $1 bn
- By 2022, the diagnostics market is expected to grow at a CAGR of 20.4% to reach $ 32 bn from $ 5 bn in 2012
- 100% FDI is allowed under the automatic route of greenfield projects
- For investments in brownfield projects upto 100% FDI is permitted under the government route
FOREGIN COMPANIES COULD LOOK TO INVEST IN THESE SEGMENTS IN INDIA
Hospitals
There is tremendous demand for tertiary care hospitals and specialty hospitals in India. Most healthcare players have been setting up additional facilities to cater to critical care or super-speciality healthcare and some leading hospital players are aggressively raising funds for their. Recently, Fortis Healthcare Ltd. accepted the proposal from Malaysia’s IHH Healthcare Berhad to invest INR 4,000 crores in the Indian Hospital Chain.
MEDICAL DEVICES AND EQUIPMENTS
Investment in the medical equipment-manufacturing sector is one of the most attractive areas for foreign companies. This sector has seen a significant flow of foreign investments over the past few years. Business consultancy services in India have given a thumbs up to the medical equipment manufacturing industry which is expected to grow in tandem with the hospital sector, touching nearly USD 60 billion
DIAGNOSTICS
Diagnostic centres are proving to be a lucrative business/investment opportunity for foreign companies. These centres have expanded their service to include all kinds of diagnostic services including cardiology and neurology.
TECHNOLOGY DRIVEN SERVICES
Tele-medicine and e-Healthcare and Tele-radiology have emerged very fast with an increasing number of foreign hospitals active in this space. Many hospitals have adopted the foreign partnership route to render these services.
HEALTH INSURANCE
HEALTH INSURANCE
The domestic health insurance business at INR 12,606 crore (USD 2.03 billion), accounts for about a quarter of the total non-life insurance business in the country. New products that also cover certain ailments not covered earlier are seeing more buyers of such insurance policies.
SOME SUCCESSFUL MNC INVESTMENTS IN INDIA
ABBOTT
US-based global healthcare and research company Abbott Laboratories has a strong presence in therapeutic, Gastroenterology, Diabetes and women’s health category in India.
GLAXOSMITHKLINE
GlaxoSmithKline is one of the world’s top research-based health management and pharmaceutical companies in India. It’s market capitalisation stood at Rs. 27,522.55 crore on June 2015.
ADVANTAGE INDIA
- 100% FDI in health
- Large domestic market
- Rising affordability
- Availability of skilled and qualified Human Resources
- Enabling environment – growing GDP and FDI
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