The Indian medical devices and Pharmaceutical industry is heavily dependent on China for raw materials, APIs and electronic components. Indian medical devices market is expected to grow at a compound annual growth rate (CAGR) of 7.5% and reach $50 bn from $11 bn by 2025 says GlobalData. Medical devices industry in India has the potential to grow at 28% p.a. to reach $ 50 bn by 2025India imports a variety of consumables, disposables and capital equipment including orthopedic implants, gloves, syringes, bandages, computed tomography and magnetic resonance imaging devices from China. India depends heavily on Chinese sources for active pharmaceutical ingredient (API) and key starting materials (KSMs).
Demand for face masks (most of which are sourced from China) and hand sanitizers has significantly increased. Individuals and governments alike are stocking up on these supplies, causing a significant spike in demand. Logistical challenges are another issue to keep an eye on as transportation capacity has been taken away. While pharma has relatively higher levels of inventory, this is something that needs to be monitored.
There are 750–800 domestic medical devices manufacturers in India, with an average investment of $ 2.3–2.7 mn and an average turnover of $ 6.2–6.9 mn. Around 65% of the manufacturers are mostly domestic players operating in the consumables segment and catering to local consumption with limited exports.
Key market shares out of the total medical devices industry (2016)
Diagnostic imaging - 30%
Other medical devices - 24%
Consumables – 16%
IV Diagnostics - 10%
Patient aids - 9%
Orthopaedic prosthetics - 8%
Dental products – 3%
As part of India's war against COVID-19, the Ministry of Civil Aviation has launched "Lifeline Udan" flights for movement of medical and essential supplies across the country and beyond. A total of 74 flights have been operated as of April 1, 2020 for transporting medical cargo across the country.