Medical Devices: an Opportunity

The Medical Equipment and devices market offers great potential for the International player looking at India seriously. OMM having vast experience in the field of international medical devices and supplies bought in India today are imported U.S. and other international medical devices should grow steadily well in to the next decade. 

With the Indian government gradually reducing its once high tariffs, deli censing imports and continuing to support this trend of reduction of duties, it facilitates further growth for imports in this sector.

According to a Frost & Sullivan Study, the Indian medical hardware market (equipment and devices) is estimated at INR 65.32 billion ($1.39 billion) in 2001-02. This is almost double the market size in 1993. On a segment –wise basis, the following are the 2001-02 estimates:

General Surgery            INR 30.64 billion  ($652 million)
Imaging                        INR 11.09 billion ($ 235 million)
Clinical Instrument        INR 5.70 billion ($ 121 million)
Critical Care                 INR 3.22 billion ($ 68 million)
Cardiac Surgery           INR 2.62 billion ($ 55 million)
Self Care                     INR 3.0 billion ($ 64 million)
Ophthalmology             INR 2.39 billion ($ 50 million)
Urology                       INR 1.47 billion ($ 31 million)
Others                        INR 5.15 billion ($109 million)

Foreign manufactures with extensive service networks (GE, Philips, Hitachi, Siemens) dominate the high and of the equipment market. Some foreign equipment manufactures have engaged in third party manufacturing in India to avoid import tariffs. The more ambitious have developed their own production facilities, taking advantage  of low manufacturing costs an using India as a platform to supply the Asian market. Opportunities exist for those who can supply hospitals with a high quality, integrated range of products, supported by an extensive service network. Manufactures of innovative, new products must adopt a long term, educative approach to the Indian market. The market for medical plastics and laboratory supplies is growing fast and there is a niche segment for high-end single-use CE marked disposables.

Historically, most Indians had very limited access to any type of modern medical service. Today, however, the situation is much improved, for several reasons. First, there is a growing awareness about health issues within India and in increasing demand for quality care at affordable prices. And third, a growing middle class of 50 to 80 million Indians are demanding more sophisticated medical treatment, a demand largely answered by private institutions.

Indian health- care providers view the FDA-regulated products of U.S. Medical device companies as the best in the world. U.S. manufactures could seize this tremendous advantage and use it as an effective tool for selling their products in this lucrative and growing market.