Cover Story

Indian MedTech Industry Ecosystem : Facilitating Growth

Mr. Jitesh Shah Managing Director Suru International Pvt. Ltd.

Global Medical Devices Market :

• The global medical device market was estimated at USD 228 bn in 2015 (INR 14.82 lakh crores) which has grown tremendously since then

• Industry estimates suggest that the global medical device market will grow at a CAGR of 7.8% from 2010 to 2020.

• The market is expected to reach USD 332 bn (INR 21.58 lakh crores) by 2021.

• The global medical device market is categorized mainly into seven segments as listed below.

• Diagnostic imaging

• Orthopedic and prosthetic devices

• Patient aids

• Consumables

• Dental products

• IV diagnostics

• Others

• Diagnostics imaging is the largest segment constituting 26% of the medical device market

Limitation of Medical Device Industry in India :

• Not Organized in terms of Manufacturing, very less information currently complied and available in Public domain

• Difficulties in understanding International Standards and Indian Regulatory Requirements, lack of professional experience in understanding regulatory requirements

• Financing Factory setting up cost – complications in land acquisition

• Difficulties in getting CE approval and its maintenance - specially in the areas of Risk Management, Post Marketing Surveillance and Clinical Evaluation, manpower management, understanding ever changing regulatory requirements

• Use of Older Technology in manufacturing and packing

• More than 70 to 75 % Import dependent – for components as well as semi assembled products

• Lot of unhealthy internal competition between manufacturers leads to manufacturing inferior quality of the products or they are left with not enough margin for plant up gradation / future expansion

• Delays from State Govt. in releasing payments for supplies made makes working capital management very difficult for companies engaged specially in supply to state Govt.

• Most of the manufacturing is now restricted to low end devices

• Use of Old methods in manufacturing compared to Chinese companies with regard to scale and technology

• Very limited knowledge of patents and copyrights.