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What are the challenges Faced by the Medical Devices Market in India?

Author: Andrew Thomas
by Andrew Thomas
Posted: Jun 07, 2019

The med-tech industry is recognized as a sunshine sector in the Government’s Make in India initiative. The medical device industry is facing many opportunities. Creation of manufacturing zones for medical devices, Free Diagnostics Service Initiative, Ayushman Bharat Yojana are all opportunities that will boost this sector.

According to research by a leading market research company, the medical devices market in India has valued at INR 338.62 Bn in 2017, and is expected to reach INR 794.29 Bn by the end of 2023, expanding at a compound annual growth rate (CAGR) of ~15.27% during the 2018-2023 period.

However many uncertainties lie ahead, new standards and regulations are emerging, reimbursement rules are becoming more complex and healthcare dynamics are evolving. Device companies must reduce costs, innovate quickly and streamline their operations more efficiently to survive these challenging times.

Challenges faced by the medical devices market in India

There is a problem of skewed GST on some diagnostic products such as instruments that attract 18% and reagents/consumables at 12%. The rate is too high and must be bought down to 5% in order to benefit the consumers as well as stakeholders.

Another deterrent to the growth of this market is the dependency on imports. Around 70-80% of the medical equipment is imported. The inverted duty structure is the root cause of this. While the medical devices are importable at zero basic customs duty, the components required by domestic manufacturers to manufacturer the same in India are charged 7.5% basic customs duty, therefore penalizing those who make in India. The current inverted customs structure is in favor of imports and is detrimental to the make in India initiative.

Lack of regulatory systems with global standards and lack of quality product testing are hampering this market. At present, medical devices can be imported from anywhere with minimum regulatory checks. Hence the quality of imports is poor and available at low costs. These factors pose a major challenge to domestic manufacturers who find it tough to compete with international brands.

Changes in the global scenario:

Changes in the global regulatory environment have burdened medical device companies with higher costs and lower costs and little or no commercial gain in the end. The FDA introduced Unique Device Identification (UDI) systems aim to improve patient safety and track devices in case of a recall but are complex and costly to implement. Similar legislation is introduced in Europe and other countries around the world, adding to the complexity of running a global operation.

Besides these regulatory challenges, market dynamics are continuously changing. From pacemakers to x-ray tubes to complex imaging equipment, the medical device industry has always embraced innovation to save lives and improve standards of healthcare deliverance. The concept of additive manufacturing or 3D printing is the latest trend in the evolution of the medical devices market in India. 3D printing adds successive layers of material to form a 3D object. This concept allows for the creation of personalized medical devices, models for clinical trials and even 3D printed human organs.

Download the free sample reports: https://www.researchonglobalmarkets.com/pressrelease/post/medical-devices-market-in-india-to-reach.html
About the Author

The author’s interests lie in business administration, market research and blogging about current industry trends. He is currently researching on the Syndicated Market Research Reports.

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Author: Andrew Thomas

Andrew Thomas

Member since: Jun 04, 2019
Published articles: 2

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