The 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.
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.