Medical Device Industry of India: Growth Dynamics and Key Challenges

Medical devices are one of the most crucial segment of a country’s healthcare system. This paper reviews the demand and supply side factors, including socio-economic, market-enabling, technological and policy instruments, that could drive the growth of the medical device industry. It highlights some key issues and challenges the sector is grappling with. Despite there being several enabling factors for the sector’s growth, India primarily manufactures medical equipment within the low-tech segment, from consumable to implantable devices. This leaves domestic requirements unmet in other segments, pushing the country to import expensive equipment in the advanced technology segment. This drives up the cost of medical equipment, leading to higher diagnostic test fees for end-users, which in turn places a significant out-of-pocket financial payment burden on households for diagnostic services.