A FICCI-Deloitte thought paper has suggested that the non-market factors like development of infrastructure, favourable regulations, FDI inflow, outsourcing of manufacturing and R&D activities to India as well as government initiatives to improve healthcare access through insurance schemes can help Indian medical electronics market reach US $6.5 billion by the year 2020.
Assuming that the current growth rate of about 17 per cent every year is sustained, However, it is believed that there is a strong possibility that the growth may outperform market estimates, the report forecasts.
“The current product affordability of medical technology is a major barrier for the market to be able to achieve its anticipated potential growth. However, prudent innovation methods can reduce manufacturing costs and eventually lower market prices. Additionally, an increased focus and reliance on domestic manufacturing of medical electronics, as opposed to the current dependence on the import market, will also help to improve this overall condition,” said Roopen Roy, MD, Deloitte & Touche Consulting India.
Meanwhile, another study by Frost & Sullivan has found that the key factors restraining health access in India are affordability, availability of health resources and awareness about health. The consultancy firm shared findings of its report titled “Assessment of Factors determining Accessibility of Medical Devices in India”.
“In India health access is simultaneously impacted by factors like availability, affordability, awareness, government spending, and wider availability of technologies,” said Jayant Singh, practice head – medical technologies, Frost & Sullivan. He also added that “working on any single factor without impacting other factors is not going to make a significant change in health outcomes and access”.