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Healthcare Products Industry in India is on an Upward Swing

06 Jul 2022

The global market for smart healthcare was valued at $153 billion in 2021. The industry is expected to grow at 13% CAGR in the period 2022-2030.

Till the ‘70s Indian healthcare products sector was dominated by MNCs who accounted for 90% of the market share. After the Indian Patent Act-1970 came into force, coupled with Drug Price Control Order, Indian medical product manufacturers started increasing.

With the overall Indian healthcare sector scheduled to cross $370 billion by 2022, it’s no surprise that the medical devices market is also growing at an impressive rate. India is among the top 20 countries in medical devices. The industry is set to grow by 37% CAGR to touch the magical $50 billion mark by 2025.

Amidst numerous initiatives for research and development taken by the Government of India to add impetus to this sector, allowing 100% FDI in medical devices has been a big boon for the industry. Both diagnostic imaging and the wearable market is set for significant growth in the next 3 years.

Healthcare products manufacturers have multiple reasons to smile. Some of the favourable market trends are:

- Supportive Government Policies: Apart from the FDI drive, the Indian government has been providing incentives for Indian manufacturers through ‘Make in India’ and ‘Atmanirbhar Bharat’ projects.

Growing Domestic Market: Life expectancy in India has grown appreciably in the last few decades. Hence, India with its vast population represents a great domestic market for medical equipment.
Increase In Insurance Penetration: Rural and semi-urban populations are coming under the purview of medical insurance, thus increasing the demand for healthcare products.
Better Medical Infrastructure: Advanced medical infrastructure has made India a medical tourism destination as well. The healthcare products industry is gaining from this too.
Large Corporations Entering The Market: With cash-rich corporate giants expanding their presence across the sector, the entire healthcare industry is benefiting from increased competition.
Adoption of New Technologies: Modern techniques and technology are transforming the shape of the Indian healthcare industry. Advanced medical products are getting manufactured in India that caters to the growing demand in the market.

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