India… An important emerging medical device market

1The medical device market in India was worth an estimated $3.2 billion in 2011, trailing only Japan, China and South Korea in Asia. The medical device market is currently about 6% of the overall $68 billion Indian healthcare market. It is poised to grow approximately 16% annually, reaching $5.2 billion by 2015.

Approximately 72% of medical devices in India are imported. However, there are no comprehensive regulatory guidelines for medical device usage and standards yet in India. Some medical devices are classified as drugs under India’s old Drugs & Cosmetic Act (DCA) of 1940. More recently, other medical devices require registration, including drug-eluting stents, intraocular lenses, catheters, heart valves, cardiac stents and scalp vein sets. There are thousands of other medical devices which are not covered by the DCA and hence do not require registration.

India is one of the largest emerging medical equipment markets in the world. It is estimated to grow at a rate of 14% Compounded Annual Growth Rate (CAGR) to exceed $4 billion by 2015. The Indian medical equipment market was worth more than $2 billion in 2010. A large part of Indian population does not have access to quality healthcare infrastructure. The healthcare service provider’s view refurbished medical equipments as an alternative to new equipments that drive the costs high.

The demand for refurbished medical equipment is increasing in India, along with the new equipment market. As the service providers are focusing on Indian rural markets coupled with cost sensitivity, the demand for refurbished medical equipment is anticipated to grow. 2

The medical devices sector in India got a boost from the Union Budget 2010-11. A uniform concessional basic duty of 5% for all medical appliances is introduced. Various other concessions like exemption of import duties have been brought about in specialized equipments as well.

At present multinational companies dominate the refurbished medical equipment market in India. Most of the equipments are imported from developed nations namely USA, Germany etc. The domestic players contribute to less than 10% of the market.

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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