2. Figure 1: Indian Healthcare Market (Billion US$),
2012-2017
Source: RNCOS
75
86
98
113
129
2012 2013 2014 2015 2016
CAGR - 14.9%
Infrastructure Indicators
• 12,760 hospitals; 5,76,793 beds
• Shortage of around 2 Million hospital beds
• 50,000 diagnostic labs
• Under AYUSH there are 24,465 dispensaries
and 3,408 hospitals
• 148,124 sub-centers, 23,887 PHCs and
4,809 CHCs
• 2,445 licensed blood banks
India Healthcare Sector: A Snapshot
Table 1: Burden of Major Diseases
Disease Incidence (‘000)
Diarrheal Diseases 88,
Mental Disorders 80,
Cardiovascular Diseases 64,
COPD and Asthma 59,
Diabetes 46,
HIV/AIDS 19,
Blindness 13,
Cancer 1,0
Source: Report of the National Commission on
Macroeconomics and Health, National Health Profile
2010 - Central Bureau of Health Intelligence
: Indian Healthcare Market (Billion US$),
Figure 2: Share of Players by Source of Investment
(%), 2012
Source: RNCOS
s
129
150
2016 2017
20%
Private Government
Drivers
• Increase in average life expectancy
• Rise in average income levels
• Rising awareness for health insurance
• Growing lifestyle related health issues
• Cheaper costs for treatment
• Thrust in medical tourism
• Government initiatives and focus on
Public Private Partnership (PPP) models
Infrastructure Indicators
Shortage of around 2 Million hospital beds
Under AYUSH there are 24,465 dispensaries
centers, 23,887 PHCs and
India Healthcare Sector: A Snapshot
: Burden of Major Diseases (2015)
Incidence (‘000)
,000
,000
,000
,600
,000
,000
,000
000
the National Commission on
Macroeconomics and Health, National Health Profile
Central Bureau of Health Intelligence
Table 2: Leading Players in the Indian Healthcare
Market
Company
Apollo Hospitals
Manipal Group of Hospitals
Fortis Healthcare Ltd
Aarvind Eye Hospitals
CARE Hospitals
Max Hospitals
Source: RNCOS
: Share of Players by Source of Investment
80%
Government
Increase in average life expectancy
Rise in average income levels
Rising awareness for health insurance
Growing lifestyle related health issues
Cheaper costs for treatment
Thrust in medical tourism
Government initiatives and focus on
Public Private Partnership (PPP) models
: Leading Players in the Indian Healthcare
Market
No. of beds
8,500
7,000
5,050
3,650
1,400
800
3. Meanwhile, the low to medium-end Medical
Disposables and Supplies (Medical Gloves,
Bandages, Syringes, Condoms, Contact Lenses,
Disinfectants etc.) is largely catered by several
domestic players.
India is the 4th
largest medical device market
Asia, accounting for around 7% of its
healthcare market, trailing only Japan, China
and South Korea. With over 700 medical device
makers, it ranks among the world’s top 20.
Figure 3: Indian Medical Device Market (Billion
US$), 2012-2017
Source: RNCOS
5.1
5.9
6.8
7.9
9.2
2012 2013 2014 2015 2016
Medical Device Market in India
CAGR - 15.8%
When it comes to areas requiring higher
technological sophistication in both the
Medical and Diagnostic Equipments
(Ultrasound, MRI, PET, CT scanners
Dialysis Machines, ECG, EEG; blood, urine and
gene analyzers etc.) and Medical Implants
(Stents, Artificial joints, Heart defibrillators
Prosthetics etc.) markets, there are a limited
number of domestic players, and the sector is
dominated by multinationals.
end Medical
Medical Gloves,
, Contact Lenses,
is largely catered by several
Figure 5: Medical Device Market by Segments
2017
Source: RNCOS
25%
19%
Medical and Diagnostic Equipments
Medical Implants
Medical Disposables and Supplies
medical device market in
accounting for around 7% of its
trailing only Japan, China
700 medical device
among the world’s top 20.
: Indian Medical Device Market (Billion
9.2
10.7
2016 2017
in India
When it comes to areas requiring higher
technological sophistication in both the
Medical and Diagnostic Equipments
CT scanners, X-ray,
; blood, urine and
and Medical Implants
eart defibrillators,
markets, there are a limited
and the sector is
Our study reveals that by 2017, Medical and
Diagnostic Equipments market is expected to
bolster at a significant growth rate of over
17% and become a US$ 6 Billion market by
2017.
: Medical Device Market by Segments (%),
56%
Medical and Diagnostic Equipments
Medical Disposables and Supplies
Our study reveals that by 2017, Medical and
market is expected to
bolster at a significant growth rate of over
17% and become a US$ 6 Billion market by
4. Currently almost 72% of the medical devices
sold in India are imported. This high percentage
can be attributed to the taxation system in the
country that is highly skewed to favor imports.
Import duty on medical devices averages about
10% which is usually passed on to the
customers.
Figure 6: Medical Device Market: Import v/s
Domestic Production (%), 2012
Source: RNCOS
As the product is imported on a SICOI (sale in
course of import) basis, value added tax (VAT) is
not applicable. However, if parts and
equipment were imported for the manufacture
of medical devices domestically, a similar
import duty would apply, plus excise and
This means taxation on domestically
products is much higher than the 10% duty paid
on finished, imported medical goods
Table 3: Leading Players in the Indian Medical
Device Market
S. No. Company
1 3 M
2 Abbott Vascular
3 Baxter
4 Becton Dickinson
5 Boston Scientific
6 GE Healthcare
7 India Medtronic
8 Johnson & Johnson
9 Philips Medical
10 St. Jude Medical
72%
28%
Import Domestic
Currently almost 72% of the medical devices
sold in India are imported. This high percentage
system in the
country that is highly skewed to favor imports.
Import duty on medical devices averages about
10% which is usually passed on to the
: Medical Device Market: Import v/s
, 2012
product is imported on a SICOI (sale in
course of import) basis, value added tax (VAT) is
not applicable. However, if parts and
equipment were imported for the manufacture
of medical devices domestically, a similar
import duty would apply, plus excise and VAT.
This means taxation on domestically-produced
products is much higher than the 10% duty paid
on finished, imported medical goods.
: Leading Players in the Indian Medical
Company
72%
-Economic Growth Leading to Higher
Disposable Incomes
-Increased Private Investment in Primary
Healthcare
-Rise in Medical Tourism
-Increased Penetration of Health Insurance
-Growth in Telemedicine
-Low Penetration
-High Dependence on Imports
-Lack of Funding in R&D
-Nascent Regulatory Environment
R
E
S
T
R
A
I
N
S
D
R
I
V
E
R
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Economic Growth Leading to Higher
Increased Private Investment in Primary
Rise in Medical Tourism
Increased Penetration of Health Insurance
Growth in Telemedicine
Low Penetration
High Dependence on Imports
Lack of Funding in R&D
Nascent Regulatory Environment
5. Regulatory Environment: What You Must Know to Enter India?
*Verification of compliance with a Global Harmonization Task Force member regulator’s requirements is expected by CDSCO. Foreign
manufacturers should enclose applicant and product information, product regulatory status, device master file
information, and post market surveillance data. Additional information is required for drug-eluting combination products. Acceptable
documents include device master files, certificates of quality system compliance, ISO 14971 risk assessments and clinical research data.
R
E
S
T
R
A
I
N
Is your device an IVD, or does it fall on the list of “Notified Medical Devices” that requires registration in
India?
Blood Component Bags, Blood Grouping Sera, Bone Cements, Cardiac Stents, Catheters, Condoms, Disposable
Hypodermic Needles, Disposable Hypodermic Syringes, Disposable Perfusion Sets, Drug Eluting Stents,
Heart Valves, I.V. Cannulae, Internal Prosthetic Replacements, Intra Ocular Lenses, Intra Uterine Devices, IVD
Devices for HIV, HBsAG and HCV, Orthopedic Implants, Scalp Vein Sets, Skin Ligatures, Surgical Dressings,
Sutures and Staplers, Tubal Rings, Umbilical Tapes
No Yes, it’s an IVD, but
NOT
listed above
Yes, it’s a medical device or IVD listed above
Appoint an India Authorized Agent to interact with
the CDSCO on your behalf. Agent must have valid
wholesale license (Forms 20B and 21B)
File application* for Device Registration
Certificate to CDSCO using Form 40, including
Schedules D-1 and D-2 as part of the application
Obtain Registration Certificate Form 41 from
CDSCO. Certificate is valid for 3 years
Identify your distributor (holding Forms 20B and 21B)
Apply for Import License using Forms 8 and 9 available from CDSCO
Obtain Import License (Form 10) from CDSCO. License is valid for 3 years
Import and market your product in India
6. Looking for an in-depth study
Our Proposition
RNCOS is a leading Business Consultancy firm helping its clients to enter new geographies and in attaining growth
by developing market strategies for them.
Critical questions that businesses need to address:
• Where should you set up your business?
• Who should be your distributors?
• What is the current market structure & size?
• Who should be your customers?
We understand your immediate needs and your long-term goals and objective and work with you on how to
accomplish them.
RNCOS blends the best of strategy consulting with the best of market research to provide organizations with
accurate, succinct answers to their most important business questions.
Our offerings
Market Insights
• What is the market size
• Structure of the market
• Who are buyers
• Buyers’ buying behavior
• Expectations from the product
Identification
• Most suitable distributors and
channels for your business.
• Analyzing their strength, credibility,
scale of operations.
• Assisting in distributor selection
Product Segments
• Similar products in the market
• Features, attributes & market share
of these products
• Customer preferences
• Price range of these products
Competitive Assessment
• Financial & strategic analysis of
existing competition
• Acceptance level among customers
• Emerging competitors
• New market entrants
GROWTH PARTNER
We help you make informed decisions through
the practical application of research, hand
holding you to your success…
7. For more information on how we can work with you
Contact
VARTIKA SEHGAL
Sr. Research Specialist
RNCOS
E mail: vartika.sehgal@rncos.com
Website: www.rncos.com
Phone: +91 120 4224700 /01 / 02/ 03
Address: B 129, Sector 6,
Noida, Uttar Pradesh
India - 201301
