India Now - page 37

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FEBRUARY-MARCH 2015
adoption of health insur-
ance, emergence of new
models of healthcare deliv-
ery, alarming rise in the
number of people affected
by lifestyle diseases, etc.
A KPMG-FICCI report in
2014 forecast that the the
healthcare sector in India,
which has emerged as one
of the largest sectors in
the country, will grow at
a CAGR of 15 per cent to
reach nearly US$ 158 bil-
lion by 2017.
The Indian hospital
industry’s market size
reached US$ 66.7 billion in 2013-14 and is expected to touch
US$ 100 billion by 2016-17. Similarly, the size of the medical
devices segment is likely to move up to
`
498 crore by 2016,
the report said. A FICCI-Deloitte report in 2011, titled
Indian
Medical Electronics Industry Outlook 2020
, stated that the
Indian medical electronics industry constituted sales of US$
1 billion of the approximately US$ 2.5 billion medical devices
industry market. According to another recent report by
AdvaMed, the Indian medical devices industry has the poten-
tial to touch the US$ 30 billion mark in the next 10 years if
a proper regulatory framework is provided to
the sector. AdvaMed is an association of medi-
cal devices makers representing 80 per cent
of medical technology firms in the US and its
member companies produce more than 40 per
cent of medical devices used annually around
the world.
Growth Enablers
India’s medical device market, with 700
medical device makers, is the fourth largest in
Asia, and ranks among the top 20 countries
M E D I C A L D E V I C E S
S EC TORAL UPDAT E
Poised for a Leap
Sound government policies and market potential portend
a brighter future for the innovation led Indian medical
devices and equipment sector.
BY SANJAY K OJHA
T
he Indian
healthcare
industry has
been exhibit-
ing a brisk
growth trajectory for the
past one decade and the
rising demand for health-
care services, is pushing
the Indian medical devices
industry to double-digit
growth. As per a Grant
Thornton India report of
2013, the Indian medical
devices and equipment
market is expected to reach
a size of US$ 7.8 billion by
2016, growing at a CAGR of 15.5 per cent.
India offers tremendous growth opportunities in the
medical devices sector ranging from traditional applications
such as ultrasound machines, magnetic resonance imaging
and computed tomography scans to emerging ones, such as
home health monitoring, ECG machines and other devices,
automated pathology equipment, etc. “I feel that the position
of the medical devices segment will be very strong over the
decade with more recent technology adoptions on the way.
With new technology advancements, healthcare and treat-
ment will become cheaper and more progres-
sive. The Indian medical industry has a high
innovation potential and is widely recognised
for the treatment of various diseases across the
globe,” said M N Vidyashankar, President, Indi-
an Electronics & Semiconductor Association
(IESA). The other factors driving the growth
of the sector are higher disposable incomes of
Indians, increase in the middle age population
group which is prone to spend more on health-
care, increased government spending and pri-
vate investment in the healthcare sector, greater
MEDICAL DEVICES
PHOTO BY ISTOCKPHOTO.COM
US$
7.8
billion
Size of Indian
medical devices
industry by 2016
Source: Grant
Thornton
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