A visit that pays off!

• The medical technology sector in India is projected to reach US$ 50 billion by 2025 and the rising number of medical facilities will boost the demand for medical devices in the market.
• Various government initiatives such as 'Production Linked Incentives (PLI) Scheme for Medical Devices 2020' and establishing medical parks will augment demand.

India has a 75-80% import dependency on medical devices. Exports stood at (US$ 2.51 billion) in 2019-20 and are expected to rise at to US$ 10 billion by 2025. Imports from countries such as the US, China and Germany. Medical devices are a highly attractive export area for US firms.

To increase export of medical devices in the country, the Indian Ministry of Health and Family Welfare (MOHFW) and Central Drugs Standard Control Organisation (CDSCO) implemented various initiatives.

• In the Union Budget 2022-23, Rs. 86,200 crores (US$ 11.3 billion) was allocated as a budget for the pharmaceutical and healthcare sector.
  
  
• To boost domestic manufacturing of medical devices and attract huge investments in India, the department of pharmaceuticals launched a PLI scheme for domestic manufacturing of medical devices, with a total outlay of funds worth Rs. 3,420 crore (US$ 468.78 million) for the period FY21-FY28.
  
  
• The government also approved applications for nine eligible projects that are expected to lead to a total committed investment of ~Rs. 729.63 crore (US$ 100.01 million) and generate ~2,304 jobs.

• India is among the top 20 markets for medical devices worldwide. The market is expected to increase at a 37% CAGR to reach US$ 50 billion in 2025, from Rs. 75,611 crore (US$ 10.36 billion) in 2020. The medical devices sector in India comprises large multinationals and small and midsized companies.
  
  
• The Government of India (GOI) has commenced various initiatives to strengthen the medical devices sector, with emphasis on research and development (R&D) and 100% FDI for medical devices to boost the market.
  
  
• About 80% of the sales in value terms is generated through imported medical devices signalling a significant presence of multinational companies in the Indian medical device market.
  
  
• The diagnostics industry in India is currently valued at $4 bn. The share of the organized sector is almost 25% in this segment (15% in labs and 10% in radiology). Between 2020 and 2025, diagnostic imaging is likely to expand at a CAGR of 13.5%.

Sources: IBEF - www.ibef.org, Invest India - www.investindia.gov.in, www.business-standard.com, www.medgadget.com