Indian med devices market to grow at 7.9 per cent CAGR through 2030: GlobalData

To encourage the growth of medical devices manufacturing, India plans to propose a new National Medical Devices Policy 2022. The policy aims to reduce import dependence on high-end medical devices and make the country one of the top global manufacturing hubs. Against this backdrop, the Indian medical devices market is expected to grow at a compound annual growth rate (CAGR) of 7.9 per cent through 2030, forecasts GlobalData.

GlobalData’s research reveals that India was amongst the top three medical devices markets in Asia-Pacific in 2021. The proposed policy also aims to reduce the cost and improve the availability of medical devices for diagnostic, therapeutic and research purposes.

Rohit Anand, Medical Devices Analyst at GlobalData, says, “To achieve these objectives, the government plans to streamline the current complex regulatory framework by providing single-window clearance system to acquire licenses to manufacture or import medical devices. The policy will ensure the availability of quality medical devices at an affordable price by implementing a Uniform Code for Medical Device Marketing Practices (UCMDMP) and making it mandatory to declare MRP.”

Under the ‘Promotion of Medical Device Parks’ scheme several states submitted their proposals to set up parks and some of them such as Madhya Pradesh, Tamil Nadu and Uttar Pradesh have already received approval.

The policy recommends setting up high-quality common infrastructure and NABL accredited laboratories for testing, evaluation, and approval of medical devices in these parks. This will significantly improve cost competitiveness and attract investment from domestic and foreign manufacturers.

The policy proposes to promote research and development activities by providing funds to companies working towards leveraging state-of-the-art technology. Only a handful of global players such as GE Healthcare, Philips, Medtronic have invested in R&D in India. This policy will encourage other large multinational companies and startups to invest in India.

Anand concludes, “The National Medical Devices Policy 2022 looks promising and will provide an opportunity for international players with innovative technologies to consider India as a preferred manufacturing location. The availability of a skilled workforce and favorable government policies will help companies produce devices at a lower cost. This will help them strengthen their presence in the domestic market by providing devices at an affordable price and ensure high-profit margins through exports.”