India's medical equipment manufacturing sector is rapidly expanding, driven by increased healthcare demand and a growing focus on technological innovation. The sector benefits from a robust infrastructure, cost-effective production, and a skilled workforce. However, companies must navigate complex regulatory requirements and ensure high standards of quality and safety.
Tecnova supports businesses in this sector by providing expert guidance on regulatory compliance, market entry strategies, and operational optimization. We assist with navigating India’s regulatory landscape, identifying reliable manufacturing partners, and ensuring adherence to international standards, helping companies successfully establish and expand their medical equipment operations in India.
Medical Equipment Manufacturing: Growth Opportunities for Foreign Investors to Venture, Expand and Flourish
The nationwide COVID-19 lockdown coupled with the Indian Prime Minister’s “Aatma Nirbhar” or self-reliant scheme has opened a sea of opportunities for several sectors. The primary among them is the medical equipment manufacturing in India, which has witnessed robust growth since 2020.
Nevertheless, there is a huge difference in the present demand and supply of medical equipment in India.
As India faces a significant shortage of medical gear, this is the right time for potential foreign investors to explore this sector. And this is where medical devices consultants in India play a significant role. Such firms can help take care of the necessary documentation work as well, such as medical device registration in India.
Current Market Scenario
India is among the top 20 countries for medical equipment throughout the world. In 2020, India’s total medical equipment market stood at USD 11 billion, and the figure is expected to touch USD 65 billion by 2024 as per a survey.
The present scenario of demand and supply-chain dynamics provides a rich opportunity for foreign investors to manufacture medical gear in India. A reliable medical device regulatory consultant in India is the best bet for foreign inventors to ride the tide and establish their presence in this lucrative market.
In 2019-2020, China exported medical equipment worth approximately USD 612.7 million (INR 4560 Cr.) to India. With initiatives, such as the Ayushman Bharat scheme by the Central GOI, this sector is expected to reach USD 50 billion within 5 years, as per the Economic Times.
Moreover, India is the fourth largest medical equipment market in Asia, after Japan, China and South Korea, capable of growing at a CAGR of 28%.
Industry Scenario
Consumables and Disposables Market in India
With the increasing surge in COVID-19 cases, the demand for medical PPE kits and disposables in combating the pandemic has also significantly increased. From 0, India currently manufactures about 450,000 PPE kits daily. According to reports, in just 60 days, the Indian PPE industry witnessed 56 times growth.
In January 2020, there were only 275,000 available PPE kits. To combat this humongous shortage of consumables and disposables, the Indian Ministry of Textiles took charge of monitoring the supply of indigenous PPE kits and other disposables.
However, the demand is still huge and calls for potential foreign investors with medical equipment business plans India to venture into this market. But to build their foundation on Indian soil, foreign investors require a reliable medical device regulatory consultant India or a healthcare business plan consultant India.
Such consultancies assist them through this market, as there is enormous competition to venture successfully into the lucrative field.
I-V Diagnostic Medical Device: Market Scenario
In 2019, the Indian In-Vitro diagnostics market was valued at USD 1.24 billion and this figure is expected to reach USD 2.06 billion by 2027.
Factors like the ageing population, increasing health awareness, lifestyle diseases, and POC diagnostics, to name a few, will continue increasing the demand in the Indian market for these devices.
.jpg)
Diagnostic Imaging
The Indian Diagnostic Imaging equipment market is projected to register a 12.4% CAGR from 2021 to 2026. This sector will grow due to the rise of chronic diseases, increasing geriatric population, and adopting advanced technologies.
Since this market is pretty innovative, heterogeneous, and dynamic due to imaging technology, a healthcare consulting firm India, like Tecnova, can help foreign investors launch innovative equipment and expand the business meticulously.
Likewise, the Orthotics and Prosthetics and Dental products markets are witnessing robust growth as well. This is inviting foreign investors to expand their businesses and attain sustainable development.
However, to thrive in this already competitive market, investors must partner with medical devices consultants in India.
Export Opportunities
India currently has a 75-80% dependency on imports of medical equipment, with exports registering at USD 2.1 billion. By 2025, this figure is expected to reach USD 10 billion at a 29.7% CAGR.
And to increase this export of medical equipment, the Indian Ministry of Health and Family Welfare, along with Central Drugs Standard Control Organisation, has devised several initiatives.
Moreover, the GOI does not impose any restriction on foreign investments in healthcare sectors. Under the ‘Open General’ category import regulations, foreign investors can import medical equipment.
Besides, customs duty imposed on imported medical devices has been brought down from 25% to 20.4%.
This is the perfect time for foreign investors willing to venture into this Indian market. And only the best healthcare consulting firm India can be of help. It can care of everything from strong market entry to medical device registration in India.
Government Policies
To further bring in investments in the medical equipment manufacturing sector, the government formulated incentivisation plans of USD 4.9 billion for 5 years. These funds will roll out only to investors manufacturing medical equipment.
With the various Government schemes to improve the medical equipment sector, the emphasis is on R&D and 100% FDI for medical instruments. According to reports, the FDI inflow in surgical and medical appliances sector was marked at USD 2.18 billion in December 2020.
Also, to attract investments and boost domestic manufacturing, the PLI scheme has been commenced by the department of pharmaceuticals. Total disbursement of funds stood at an impressive USD 468.78 million for FY21-FY28.
%20(1).jpg)
A Roaring Demand in the Medical Equipment Manufacturing Market: Opportunity for Foreign Investors
With the growing demand in this industry, foreign organizations with medical equipment business plans India should step in.
Foreign investors can cement their position in this Indian market with a clear-cut and 100% effective strategy from the best healthcare consulting firm India and achieve a competitive edge.
One such leading healthcare business plan consultant India, Tecnova, provides customized India-centric strategy and manufacturing facility set-up support to foreign firms.
Such a healthcare business plan consultant India offers a spectrum of services, like:
- 360 degree competitive assessment
- Expansion and growth advisory
- Regulatory compliances
- Vendor and distributor acquisition
- Retail rollout
- Partner search
- In-Licensing and Out-Licensing of Products (Medical device registration in India)
- Setting up off-shore R&D Labs in India
- Comprehensive merger and acquisition support
- Project management for setting up Greenfield/Brownfield, etc.
Currently, India imports 85-90% of medical equipment from foreign countries, China being one of the prominent of all. The GOI aims to increase domestic production capacity. Therefore, this is the perfect time for overseas investors with medical equipment business plans India to enter this booming sector.
Reference Links:
https://bit.ly/3B2yyI1
https://bit.ly/37Y6l8x
https://bit.ly/3swCUUB
https://bit.ly/3y4jVlx
https://bit.ly/3mmN8FZ
.png)
.png)
.png)
.jpg)
.jpg)
