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International medical device OEMs should consider setting up shop in India.
Ames Gross and Momoko Hirose
It may sound intimidating, but if
foreign companies are willing to
do the legwork, there are many
good reasons to consider launching a medical device plant in
India. Few statistics on the country’s device market are available
but, with the help of our medical
partner who has been in business
in India for more than 10 years,
we estimate the market to be
about $2 billion, growing at 15%
per year. The market’s growth
has been driven by an increase
in both government and private
sector expenditures in healthcare,
increased coverage of medical
insurance, and rising incomes.
There is also a need to cater
to a price-sensitive market. Our
company estimates that more
than 60% of India’s sophisticated medical devices are
imported. Indian manufacturers, which in general are
small and undercapitalized, struggle to meet this demand.
International companies looking to corner this market will
find a good availability of raw materials and equipment in
India, as well as a trained labor force with technical and
managerial personnel.
Another source of encouragement is the recent introduction of product registration for certain implants and other
devices. International-level standards for drug and device
manufacturing have also been mandated. All of these factors, combined with the desire of the Indian government to
promote domestic manufacture, should enable international
companies to start device-manufacturing plants in India.
Ames Gross is president and founder of Pacific Bridge
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Incentives for Companies
To reduce its dependence on imports, the Indian government allows a foreign company to set up a 100% subsidiary
or a joint venture in India for manufacturing. Manufactured medical devices can be sold in India or overseas, and
the patenting of devices and registration of trademarks are
permitted. As of now, there are no mandatory medical device price controls. A foreign-owned but Indian-registered
company is treated the same as any other company in India
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