Overview
The Global Medical Device Contract Manufacturing Market is valued at USD 149.4 billion in 2029 from USD 78.9 billion in 2024 at a CAGR of 11.4% (source: Markets and Markets). The current market size of the medical devices industry in India is estimated at $11 Bn and is expected to reach USD 50 billion by 2030 at a CAGR of 16.4% (IBEF & International Data Corporation).
In 2020, China held the largest share of the Medical Device Contract Manufacturing Market (marketsandmarkets.com). But, post COVID-19 multiple uncertainties forced Global Medical Device Developers to look for Contract Manufacturers in alternative locations. Due to multiple reasons, India emerged as the hotspot for Medical Device Manufacturing, especially for USA Medical Device Companies.
What is Make in India for Medical Device Industry?
“Make in India” is the initiative by Govt. of India to promote local manufacturing of Medical Devices and reduce dependencies on import. The efforts of the government to reduce import dependence from 80% to below 30% in next 10 years and ensure self-reliance quotient of 80% in Med-Tech by ensuring Make in India with SMART milestones:
Following the success of Make in India it is envisaged that by 2047
- India will be one amongst Top 5 Global manufacturing hubs in terms of value and technology for Medical Devices
- India will be home to 25 MedTech $Bn companies and home & originator to 25 high end futuristic technologies in MedTech
- India will emerge as champion in critical components, cancer diagnostics, medical imaging, ultrasonic scans, molecular imaging, & PCR technologies
- India will achieve 10-12% of Global Market Share of Medical Devices Sector to arrive at a $100-300 Bn industry
- India will have about 50 Medical Devices Clusters across India for faster clinical testing of Medical Devices to boost product development and innovation
How partnering with India Medical Device Manufacturers beneficial for US Medical Device Developers?
Post Covid-19 many US-based Medical Device Companies have found partnerships with Indian Medical Device Manufacturers beneficial. Here we focus on key reasons why partnering with Indian Medical Device Manufacturers is becoming a preferred choice amongst the US Medical Device Companies.
1) Capture Asia’s 4th largest Medical Device Market with 25% “Make in India”
With new guidelines under “Make in India” initiative the Govt. of India has announced Medical Device Companies with “25% of Make in India” are only eligible to apply for govt. tenders. This means that US Medical Device Companies with Indian Manufacturers automatically get to capture tenders and majority of the Indian Medical Device Market. With new policies, partnering with Indian Manufacturers is a wise move to capture 4th largest Medical Device Market in Asia.
2) Cost-optimized medical device manufacturing
Manufacturing cost in India is lower when compared to other locations. Manufacturing cost in USA, Japan or UK is higher as compared to the manufacturing cost in India. While outsourcing manufacturing in India, you optimize cost in multiple ways including,
- India has availability of Human Resource at optimal cost
- Availability of land and resources at optimal cost
- Power supply at optimal cost
- Procurement from local vendors helps in optimizing design & mass manufacturing cost
- Country geography makes transportation easy and reduces supply chain costs
- While outsourcing you reduce cost on multiple investments including infrastructure, machinery and more
- Regulatory Assistance along with manufacturing eases market penetration across multiple geographies
3) Strong Regulatory Landscape
Medical Device Industry is a highly regulated landscape and missing out on regulatory can delay your product’s Go to Market and increase overhead costs. In the past Indian Medical Device Manufacturers were not equipped to understand regulatory due to lack of resources. But with “Make in India” initiative led benefits, most of the manufacturers are aggressively working to stay in sync with International Regulatory Norms.
Medical Device Manufacturers with enriched experience and diverse portfolio have in house Regulatory and Quality Assurance Teams to ensure every step of the process is in sync with International regulatory guidelines. They also assist you with technical documentation and regulatory requirements to help you expand to multiple geographies.
4) Skilled & talented workforce
India has the fastest growing young population for Technology Development. Engineers from numerous Institutes of Eminence across India are aggressively contributing to strengthen the healthcare landscape in India. From Research to Engineering & Production, skilled and qualified workforce is readily available at Manufacturer’s facility to provide end-to-end manufacturing & development of Medical Devices. Favorable policies of employment in the country increase retention and promote higher productivity levels at Manufacturer’s end.
5) Technologically equipped Medical Device Parks & favorable govt. schemes
Medical Device Parks provide a technologically equipped environment for Medical Device Development. Indian Government has total financial outlay of Rs. 400 Crore and the maximum assistance under the scheme for one Medical Device Park would be limited to Rs. 100 crores in different states of India. SMEs like us, Johari Digital Healthcare Ltd. are expanding to technology hubs to boost manufacturing and development of advanced Medical Devices.
6) Schemes favoring Medical Device outsourcing in India
- PLI (Production Linked Incentive Schemes) – Under the production linked Incentive schemes the manufacturers involved in certain identified categories of Medical Devices shall be given financial incentives. From FY 2020-21 to FY 2027-28, selected companies at the rate of 5% of incremental sales of medical devices manufactured in India and covered under the four Target segments of the scheme, for a period of five (5) years shall be incentivized.
- 100% FDI in Medical Devices – Government has allowed 100% FDI in Medical Devices to attract investments and accelerate the growth of Medical Device Development & Manufacturing.
- Partnerships with Institutions to accelerate R&D – To accelerate commercialization of newer innovations and accelerate the project development companies are partnering with institutions. The institutional partnerships shall boost Research & Development in the Medical Device Domain for accessible healthcare. With multiple favorable government policies and infrastructure, India becomes one of the best destination to outsource your Medical Device Manufacturing.
7) IP Protection
India has second largest English speaking population. This makes communication easy and information comprehensible. The protection of trade data, design documents, and other sensitive data is an important concern for Medical Device OEMs. Medical Device Manufacturers like us ensure 100% IP Protection with multilevel IP protection. We adopt:
- Physical protection
- Decentralized information access
- Transparent communication
- Comprehensibility in communication
8) Scalability
You reduce cost somewhere and, you can use it to scale up in multiple ways. Signing up with a Medical Device Manufacturer automatically brings down costs as you don’t invest in setting up teams, managing production floor and hiring extra resources or installing high end machineries. It helps you to focus on areas like Research & Development, Branding, Marketing and Networking that actually add value and help your business to grow.
9) Geography and Location ease supply chain management
Managing warehouse and tracking shipments is another important aspect. Every country has specific shipping requirements. As Manufacturers in India have regulatory professionals working with them it’s convenient to have packaging and labeling done according to specific geography requirement. The location of the country also allows easy shipping via all modes (Air, Sea and Land) to nearly all the countries with minimal investment in transportation.
Sign up with India’s Most Preferred Medical Device Contract Manufacturing Organization, Johari Digital Healthcare Ltd.
- Extensive experience in diverse technologies
- Center of Excellence at Globally recognized Institute of Eminence, IIT, Jodhpur
- Skilled technology experts with hands-on experience
- 40+ years of Medical Device Manufacturing experience
- MDSAP, ISO:13485 and US FDA recognized manufacturing
- Long term business association with Global MedTech giants
Conclusion
Conclusively, India qualifies on all parameters as a perfect Medical Device Manufacturing destination. With favorable Govt. policies, Cost-optimized resources, and a skilled workforce India is the perfect and most preferred Medical Device Manufacturing Destination. US Medical Devices must consider India as one of the potential Medical Device Manufacturing destination.
References:
https://www.medicaldevice-network.com/comment/indias-medical-device-caps-mean-market/