A brief overview of the Indian Healthcare market is explained in this Blog. The importance of the Private sector and the import dependent Indian healthcare Industry makes India an attractive investment option
Indian Healthcare Market – An Overview:
The recent political changes resulting in a pro-business environment has made manufacturers from the Healthcare industry stand up and take notice of India. Promising economic growth, rising disposable incomes, large pool of English speaking and talented human resources, shift from communicable diseases to lifestyle related diseases has made the Indian Healthcare industry an attractive investment option. Growth is seen across all sectors of healthcare: medical devices, pharmaceuticals, labs, hospitals, IT services and other providers. The healthcare sector’s rapid growth is driven by expanding coverage, services, and increased spending by both public and private entities.
The healthcare system in India is split into public and private sectors, with the private sector occupying 70% of the market share. Attractive pricing and competitive rates for high quality surgical procedures and treatments have increased the popularity of India as a Medical Tourism destination. This industry is growing fast and currently valued at US$ 7.69 billion and is expected to grow to US$ 14.31 billion by 2029. Recognizing the immense opportunities in this space, Morulaa has set up an independent division: Holiday Healer.
In 2023, the Indian healthcare industry reached a value of US$ 372 billion reflecting its expansive growth and the strategic pricing models employed by healthcare providers and distributors. The healthcare sector employs approximately 7.5 million people, with advancements in telemedicine and data analytics expected to create millions of new tech jobs. Public healthcare spending rose to 2.2% of GDP in FY22.
The hospital market was valued at nearly US$ 99 billion in 2023 and is projected to grow at a CAGR of 8% to reach US$ 193.59 billion by 2032. Health insurance premiums totaled Rs. 2,63,082 crore (US$ 31.84 billion) in FY24, with health insurance making up 33.33% of total gross written premiums.
India Medical Device Market – An Overview
The Indian medical device sector has seen significant growth, becoming an independent industry and a “sunrise” sector under the Make in India initiative in 2014. India imports 70-80% of its medical devices from countries such as the US, China, and Germany through a network of established distributors who ensure a steady supply of these devices. The market size, valued at Rs. 90,000 crore (US$ 11 billion) in 2022, is projected to reach US$ 50 billion by 2030 with a CAGR of 16.4 %.
Some of the noteworthy statistics of the Indian medical device market which makes India an attractive market for Healthcare business growth and dominance.
- India is the 4th largest medical device market in Asia and ranks among the top 20 globally.
- In 2022-23, India exported US$ 3.39 billion worth of medical devices and imported US$ 7.49 billion, reflecting their pricing dynamics in the international market.
- The diagnostic equipment market is expected to reach US$ 6 billion by 2027.
- The medical and surgical appliances sector in India has attracted US$ 3.28 billion in FDI from April 2000 to March 2024
- The Indian government’s National Medical Policy, introduced in November 2023, allows 100% FDI in the medical devices sector. The sector has attracted US$ 3.26 billion in FDI from April 2000 to December 2023.
- The Interim Budget 2024-25 allocated Rs. 98,461 crore (US$ 11.85 billion) for the pharmaceutical and healthcare sector (AYUSH) .
- The expansion of medical facilities in Indian healthcare industry is driving a growing demand for medical devices. Government initiatives like the PLI (Production Linked Incentive) Scheme and establishment of medical parks (established four medical devices parks in Andhra Pradesh, Telangana, Tamil Nadu and Kerala) aim to stabilize prices and enhance the availability of high-quality medical devices..
- Key trends are Big Data, Start-ups, Robotics, Wearables and New Devices with AI integration
Registration of medical devices in India is regulated by the Central Drug Standard Control Organization (CDSCO). To boost the the medical devices market in India, the Ministry of Health and Family Welfare (MOHFW) and Central Drugs Standard Control Organisation (CDSCO) have undertaken several initiatives:
- Introducing online SUGAM portal to ensure transparency between manufacturers, distributors and CDSCO, and ease of approvals / registration across all the departments
- Updating and Aligning new Medical Device Rules, (MDR 2017) to international standards in order to ensure structure and clear guidance on risk based compliance
- Clarifying guidelines on materiovigilance for adverse event reporting
- Compiling a comprehensive list of medical devices and their intended use to assist manufacturers and distributors in determining the risk classification of their medical device.
How can Morulaa Help
Morulaa HealthTech as successful regulatory consultants has delivered high level professionalism and quality towards our clients. Contact Harshita Gupta for additional consultation or information
Source: IBEF Healthcare and Medical Device Industry Report, May 2024