India’s Medical Device Companies Eyeing the Global Market Post-COVID

The COVID-19 pandemic reshaped the global healthcare landscape, creating significant demand for medical devices. Indian medical device companies, buoyed by their performance during the pandemic, are increasingly focusing on expanding their footprint in international markets. By leveraging their cost competitiveness, innovative capabilities, and growing domestic expertise, Indian manufacturers are positioning themselves as key players in the global medical device industry.

1. Post-COVID Impact on the Indian Medical Device Industry:

A. Accelerated Growth During the Pandemic:

• Indian manufacturers ramped up production of critical devices such as ventilators, oxygen concentrators, and diagnostic kits to meet surging domestic and global demand.
• Export of COVID-19 testing kits and PPE positioned India as a reliable supplier during the global crisis.

B. Strengthened Manufacturing Ecosystem:

• The pandemic highlighted the importance of domestic manufacturing, leading to government incentives like the Production Linked Incentive (PLI) Scheme and development of medical device parks.

C. Enhanced Reputation:

• India’s ability to scale up production during a global emergency enhanced its reputation as a trusted manufacturing partner.

2. Key Opportunities in the Global Market:

A. Growing Global Demand:

• Increasing healthcare spending in developed and emerging economies is driving demand for affordable medical devices.
• Chronic diseases like diabetes, cardiovascular disorders, and cancer create sustained demand for diagnostic and therapeutic devices.

B. Niche Segments:

• Portable Devices: Portable ECG machines, handheld ultrasound devices, and point-of-care diagnostics are in demand globally.
• IoT-Enabled Devices: Remote monitoring tools and wearable devices are gaining traction as telemedicine adoption increases.
• Affordable Innovation: Frugal innovations tailored to price-sensitive markets in Africa, Southeast Asia, and Latin America.

C. Export to Emerging Markets:

• India’s cost-effective solutions align well with the needs of emerging markets seeking affordable and scalable healthcare technologies.

D. Partnership Opportunities:

• Collaborations with global manufacturers and distributors provide access to advanced markets like the U.S., Europe, and Japan.

3. Challenges to Global Expansion:

A. Regulatory Compliance:

• Meeting stringent regulatory standards like FDA (U.S.) and CE Mark (Europe) is resource-intensive.
• Variability in standards across different countries complicates market entry.

B. Competition from Established Players:

• Global giants like Medtronic, Philips, and GE dominate high-value segments, making it challenging for new entrants to compete.

C. Supply Chain Dependencies:

• Heavy reliance on imported components and raw materials increases production costs and exposes manufacturers to global disruptions.

D. Brand Perception:

• Indian medical devices are sometimes perceived as lower quality compared to products from established global players.

E. Limited R&D Investment:

• Indian companies still lag in R&D spending compared to their global counterparts, limiting innovation in high-end devices.

4. Strategies for Indian Companies to Succeed Globally:

A. Enhancing Product Quality and Certification:

• Invest in quality assurance to meet international standards like FDA, CE, and ISO 13485.
• Establish dedicated quality testing labs to streamline compliance processes.

B. Strengthening R&D Capabilities:

• Focus on developing innovative devices tailored for specific global needs, such as portable and wearable solutions.
• Collaborate with academic institutions and research organizations for cutting-edge development.

C. Leveraging Cost Competitiveness:

• Emphasize India’s ability to produce high-quality devices at lower costs, appealing to price-sensitive markets.
• Promote frugal innovations as solutions for healthcare challenges in low- and middle-income countries.

D. Building Global Partnerships:

• Form joint ventures with established international players to leverage their market expertise and distribution networks.
• Partner with global distributors to enhance market reach and customer trust.

E. Expanding Manufacturing Capabilities:

• Use government incentives under the PLI scheme to build state-of-the-art manufacturing facilities.
• Develop localized supply chains to reduce dependency on imports and improve production efficiency.

F. Branding and Marketing:

• Invest in global marketing campaigns to promote the “Made in India” brand as a symbol of affordability and reliability.
• Showcase products at international trade fairs and expos.

5. Government and Policy Support:

A. Production Linked Incentive (PLI) Scheme:

• Provides financial incentives to manufacturers of high-value medical devices like imaging systems and implants.

B. Medical Device Parks:

• Four medical device parks in Andhra Pradesh, Telangana, Tamil Nadu, and Himachal Pradesh offer shared infrastructure to reduce production costs.

C. Trade Agreements:

• Bilateral and multilateral trade agreements to reduce tariffs and facilitate market entry for Indian exporters.

D. Export Incentives:

• Tax benefits and subsidies for companies focused on global exports.

E. Regulatory Simplification:

• Streamlined regulatory processes for manufacturers targeting international markets.

6. Success Stories:

A. Diagnostics:

• Indian manufacturers exported millions of affordable COVID-19 testing kits to over 100 countries during the pandemic.

B. Ventilators and Oxygen Concentrators:

• Companies like Bharat Electronics and AgVa Healthcare scaled up production to meet global demands during COVID-19.

C. Orthopedic Implants:

• Indian orthopedic implants are gaining popularity in emerging markets due to their cost-effectiveness and compliance with global standards.

D. Wearables and IoT-Enabled Devices:

• Startups like BeatO and HealthifyMe are exporting wearable health monitors and IoT-enabled devices to developed markets.