According to a report prepared by CII-Deloitte, the medical technology sector, which is presently valued at USD 4.9 billion is growing at a CAGR of 17% will be a force multiplier in covering the healthcare gaps in India. However, with a per capita consumption of USD 3, the market is untapped and efforts to unbundle the huge market will reduce considerably India’s dependence on imports and over a period of time create exportable surpluses.
The Report, which was released at the 10th Medical Technology Conference organized by CII today in New Delhi has identified four core areas to unlock the huge latent potential, such as creating an enabling regulatory landscape, incentivizing investment, identifying the right verticals for manufacturing and importantly focusing on innovation and design products suitable to India.
With less than 1 physician per 1000 population, the CII-Deloitte report points out that India is well behind its peer countries. It needs an additional 3.6 million hospital beds to reach the recommended capacity. Only about 27% of India’s population is covered around any form of health insurance and the out of pocket expenditure on health is 62.4% in India as compared to the world average of 18.2%. “ Our effort should be to close these gaps to make the healthcare accessible and affordable to masses and medical devices that can ensure wellness of the people within the paying capacity of the people,” says CII.
“Medical technology plays a critical role at all stages of the healthcare continuum including diagnostics, treatment & monitoring. The modern medical technology breakthroughs including remote diagnosis & monitoring, E-ICU’s and 3D printing can help us fulfill the objectives of equity, affordability, quality and preventive health– all of which are enshrined in India’s new National Health Policy of 2017”, says Ms. Charu Sehgal, Partner | Leader, Life Sciences & Health Care, DeloitteToucheTohmatsu India LLP.
The CII- Deloitte report titled “Medical Technology Shaping Healthcare for all in India”, is an outcome of an extensive research and several rounds of deliberations with medical device industry experts talks about the key steps to be taken by two pivotal stakeholders – government and industry to ensure that medical technology industry to progress on its growth path.
“The removal of existing barriers for growth will ultimately lead to increased investment in Indian Med Tech sector in the form of local manufacturing.The shift should be towards make in India for the world”, says Mr. Himanshu Baid, Chairman, CII Medical Technology Division.
The report also highlighted how to leverage the disruptive technology to make healthcare accessible and affordable. That will help medical technology to bridge the gap between healthcare provider and patient, ingrain the concept of wellness and importantly overcoming the constraints rendered by infrastructure, geographical and affordability constraints.
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About CII – MTD
CII Medical Technology Division (MTD) has been proactively working on the key industry issues with the government, involving all the stakeholders of the medical electronics, devices, equipment and technology Industry. The division has been a nodal point of reference, providing a forum for dialogue with the government and companies from the healthcare technology sector.
The CII MTD, which represents 70% of Med Tech manufacturers in India, has very active participation of medical technology companies from India and abroad. It is dedicated to the advancement of medical technology, improvement in patient care and driving high-quality cost effective health care technologies for India.
The division is working with a vision of expanding access to quality healthcare, generating employment, manufacture, boosting exports and increasing further foreign exchange inflows, thus advancing economic growth and social outcomes.
For long, India has struggled to provide quality affordable healthcare to all its citizens. While the reasons for this are well known, adopting the conventional route of creating adequate physical infrastructure, building a medical and paramedical resource base and maintaining high quality standards at the same time would require huge investments and timelines that a developing country like India can ill afford.
The disruptive power of technology has completely transformed landscape in various spheres of life. It has changed the ways humans communicate, travel, socialize, store, and access information and many more. Medical technology has the potential to do the same for healthcare by helping overcome the current infrastructural and affordability constraints.
Medical Technology can bridge the distance between the caregiver and the patient thereby helping patients in remote areas access specialist and specialized equipment present in large cities far away. Technological advancements in the fields of health monitoring and diagnostics help detect health issues early on thereby reducing overall cost of care and enhancing wellness levels of the society. Similarly, technological interventions are rapidly increasing the precision and efficacy of treatment modalities thereby improving clinical outcomes.
However, to realize this opportunity both the government and the industry will need to make concerted efforts.
The government should streamline the regulatory and business ecosystem in a manner that makes operating in India more attractive and simpler for both the medical devices players as well as investors. The industry needs to customize their business models to suit Indian markets. Medical devices segments which provide a sizeable opportunities and require moderate level of technological expertise to produce should be prioritized for manufacturing in India. Finally, India should embrace the path of innovation in the MedTech industry that makes its products and solutions tailored-made for the opportunities and constraints of the country.
If India is able to be self-reliant in Medical Technology sector and capitalize on this Medical Technology revolution, which could be achieved if all stakeholders play their respective roles, it would stand a good chance of realizing its vision of providing healthcare to all its citizens.