LONDON, UK (GlobalData), 2 October 2013 - Driven by the country’s growing economy and population income, the Indian pharmaceutical market will increase significantly from approximately $21 billion in 2013 to $56 billion in 2020, at a Compound Annual Growth Rate (CAGR) of 15%, forecasts research and consulting firm GlobalData.
According to the company’s latest report*, the medical device sector will also experience steady growth from $7.5 billion in 2013 to $15.3 billion in 2020, at a CAGR of 11%. In 2012, the main segments were ophthalmic devices (38.3%), In-Vitro Diagnostics devices (9%), hospital supplies (8.9%) and cardiovascular devices (8.1%).
Joshua Owide, Director of Healthcare Industry Dynamics, says: “India is an emerging healthcare market that has remained unsaturated due to the limited penetration of healthcare insurance and poor access to healthcare facilities, especially in rural areas. However, an increasing demand for high-quality services, affordability, and a growing medical tourism industry will provide the necessary momentum for the growth of the pharmaceutical market.”
Still, the lack of transparency in the Indian drug regulatory system and weak patent laws are a major challenge for foreign multinational companies attempting to enter or expand in the Indian healthcare market.
“In order to increase transparency in the regulatory system, the Ministry of Health and Family Welfare is planning to introduce a bill into parliament in 2013, to create the Central Drug Authority (CDA), which will replace the current Central Drug Standard Control Organization. Once the CDA is formed, it will greatly improve the regulatory environment for pharmaceuticals, medical devices and clinical trials,” says Owide.
However, there is also a need for India to improve its healthcare infrastructure in rural areas and expand its universal health coverage, since 80.6% of the population was not covered by any form of health insurance in 2012 - a factor which could hinder further growth of the market.
*CountryFocus: Healthcare, Regulatory and Reimbursement Landscape - India
This report provides information and analysis on India’s healthcare, regulatory and reimbursement landscape. It identifies the key trends in the healthcare market and provides insights into the demographic, regulatory and reimbursement landscape and healthcare infrastructure. Most importantly, it provides valuable insights into the trends and segmentation of the pharmaceutical and medical device markets.
This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.
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