Segment 

Market Size (USD billion) 

CAGR (%) 

Surgical Instruments 

202.8 

6.1 

Medical Devices 

174.3 

4.9 

Implants 

105.9 

5.4 

Prosthetics 

54.7 

6.3 

Consumables 

50.6 

5.9 

Diagnostics 

24.4 

4.7 

Region 

Market Share (%) 

CAGR (%) 

North America 

39.8 

4.8 

Europe 

29.2 

5.2 

Asia Pacific 

21.4 

7.1 

Latin America 

5.3 

6.4 

Middle East and Africa 

4.3 

5.6 

Drivers 

Challenges 

Large and growing demand for healthcare services, especially in the rural and semi-urban areas. India has a population of over 1.3 billion, with a high burden of communicable and non-communicable diseases, and a low penetration of healthcare facilities and professionals. This creates a huge gap and opportunity for the surgical and medical products to cater to the unmet needs of the population. 

High dependence on imports, especially for high-end and critical products. India imports about 80% of its medical devices, mainly from the US, Germany, China, and Singapore. This makes the industry vulnerable to the fluctuations in the exchange rates, tariffs, and supply chain disruptions. It also affects the competitiveness and profitability of the domestic manufacturers. 

Increasing awareness and affordability of the consumers, especially in the middle and upper income segments. India has a growing middle class, with a rising disposable income and spending on healthcare. The consumers are also becoming more aware of the quality and benefits of the surgical and medical products, and are willing to pay for them. This creates a favorable market for the premium and branded products. 

Lack of adequate infrastructure, testing facilities, and skilled manpower. India has a poor infrastructure for the manufacturing and distribution of the surgical and medical products, such as power, water, roads, and ports. The country also lacks the testing and certification facilities for the quality and safety of the products, and relies on the foreign agencies for the same. The industry also faces a shortage of skilled and trained manpower, such as engineers, technicians, and managers. 

Rising medical tourism, attracting patients from across the world for quality and affordable treatment. India is one of the leading destinations for medical tourism, with a large number of patients coming from the neighboring countries, the Middle East, Africa, and Europe. The country offers a range of medical services, such as cardiac, orthopedic, dental, and cosmetic, at a fraction of the cost of the developed countries. This creates a demand for the surgical and medical products, especially in the private and specialty hospitals. 

Complex and stringent regulatory framework, leading to delays and uncertainties. India has a complex and evolving regulatory framework for the surgical and medical products, involving multiple agencies, such as the Central Drugs Standard Control Organization, the Drug Controller General of India, and the National Pharmaceutical Pricing Authority. The regulations are often unclear, inconsistent, and unpredictable, leading to delays and uncertainties for the manufacturers and importers. The regulations also impose price controls and caps on some of the products, affecting their viability and sustainability. 

Supportive policies and incentives of the government, such as the PLI scheme, the medical device park scheme, and the Make in India initiative. The government has launched several schemes and initiatives to support the development and growth of the surgical and medical industries in the country, such as the Production Linked Incentive (PLI) scheme, the Medical Device Park scheme, and the Make in India initiative. These schemes and initiatives aim to provide financial and technical assistance, infrastructure and common facilities, tax and duty exemptions, and ease of doing business to the industry. 

Intense price competition, especially from the low-cost and sub-standard products. The industry faces intense price competition, especially from the low-cost and sub-standard products, mainly from China and other Asian countries. These products often undercut the prices of the domestic manufacturers, and capture a large share of the market, especially in the rural and semi-urban areas. These products also compromise the quality and safety of the products, and erode the trust and confidence of the consumers. 

Innovation and research activities, leading to the development of new and improved products. The industry is witnessing a surge in the innovation and research activities, leading to the development of new and improved products, such as smart and wearable devices, biodegradable and bioresorbable implants, and point-of-care diagnostics. These products offer better performance, convenience, and outcomes to the users, and create a differentiation and value proposition in the market. 

Intellectual property rights issues, leading to the infringement and imitation of the patented products. The industry faces intellectual property rights issues, such as the infringement and imitation of the patented products, mainly by the competitors from China and other countries. These issues affect the innovation and research activities of the industry, and reduce the returns and incentives for the same. They also affect the reputation and credibility of the industry, and expose it to legal disputes and challenges. 

Strengths 

Weaknesses 

Availability of land, water, power, and other resources at competitive rates. The states have abundant and cheap land, water, power, and other resources for the industry, and offer them at subsidized and concessional rates. The states also have a stable and reliable power supply, with minimal outages and interruptions. 

Lack of adequate cold chain and storage facilities for the temperature-sensitive products. The states lack the adequate cold chain and storage facilities for the temperature-sensitive products, such as vaccines, insulin, and blood products. These products require a controlled and monitored temperature and humidity, and are prone to spoilage and wastage. 

Presence of well-developed industrial parks, clusters, and zones, with common facilities and incentives. The states have well-developed industrial parks, clusters, and zones, dedicated to the surgical and medical industries, such as the MedTech Valley in Andhra Pradesh and the Medical Devices Park in Telangana. These parks, clusters, and zones provide common facilities, such as testing, sterilization, warehousing, and logistics, and incentives, such as tax and duty exemptions, subsidies, and reimbursements, to the industry. 

Lack of strong linkages and collaborations among the industry, academia, and research institutions. The states lack the strong linkages and collaborations among the industry, academia, and research institutions, which are essential for the innovation and development of the surgical and medical products. The states have a limited number of educational and research institutions, such as the Indian Institute of Technology, the Indian Institute of Science, and the Council of Scientific and Industrial Research, which are engaged in the surgical and medical fields. 

Availability of skilled and semi-skilled manpower, with expertise in engineering, biotechnology, and pharmacy. The states have a large pool of skilled and semi-skilled manpower, with expertise in engineering, biotechnology, and pharmacy, which are relevant for the surgical and medical industries. The states also have a number of vocational and technical institutes, such as the Industrial Training Institutes, the Polytechnics, and the Engineering Colleges, which provide training and education to the manpower. 

Lack of awareness and adoption of the quality standards and best practices in the industry. The states lack the awareness and adoption of the quality standards and best practices in the industry, such as the ISO, CE, and FDA certifications, which are required for the domestic and export markets. The industry also faces a lack of awareness and compliance with the regulatory and environmental norms, such as the Medical Device Rules, the Biomedical Waste Management Rules, and the Hazardous Waste Management Rules, which are essential for the quality and safety of the products. 

Proximity and connectivity to the major domestic and international markets, such as Hyderabad, Chennai, Bengaluru, and Mumbai. The states have a strategic location and connectivity to the major domestic and international markets, such as Hyderabad, Chennai, Bengaluru, and Mumbai, which are the hubs for the healthcare and pharmaceutical sectors. The states also have a good road, rail, air, and sea connectivity, which facilitates the transportation and distribution of the products. 

Lack of diversification and innovation in the product portfolio, with a focus on the low and medium-end products. The states lack the diversification and innovation in the product portfolio, with a focus on the low and medium-end products, such as surgical instruments, syringes, and needles. The states have a limited presence in the high-end and niche products, such as implants, prosthetics, and diagnostics, which have a higher value and demand in the market. The states also have a low level of research and development expenditure and output, compared to the other states and countries. 

Opportunities 

Threats 

Increasing demand for the surgical and medical products, both in the domestic and export markets. The states have an opportunity to tap into the increasing demand for the surgical and medical products, both in the domestic and export markets, driven by the factors such as the growing population, the rising healthcare expenditure, the increasing medical tourism, and the supportive government policies. The states can also leverage their strengths, such as the low cost of production, the availability of resources and manpower, and the proximity and connectivity to the markets, to enhance their market share and penetration. 

Increasing competition from the other states and countries, especially in the high-end and niche segments. The states face increasing competition from the other states and countries, especially in the high-end and niche segments, such as implants, prosthetics, and diagnostics, which have a higher value and demand in the market. The competitors, such as Gujarat, Maharashtra, Tamil Nadu, Kerala, Karnataka, China, Taiwan, South Korea, and Singapore, have an edge over the states in terms of the technology, quality, innovation, and branding of the products. 

Increasing scope for the public-private partnerships, especially in the areas of infrastructure, testing, and research. The states have an opportunity to increase the scope for the public-private partnerships, especially in the areas of infrastructure, testing, and research, which are essential for the development and growth of the surgical and medical industries. The states can collaborate with the private sector, such as the industry associations, the chambers of commerce, the corporates, and the NGOs, to create and improve the infrastructure, testing, and research facilities for the industry, and to share the costs and benefits of the same. 

Increasing regulatory and environmental compliances, especially in the areas of safety, quality, and disposal. The states face increasing regulatory and environmental compliances, especially in the areas of safety, quality, and disposal, which are essential for the quality and safety of the products, and the protection of the environment and public health. The states have to comply with the various norms and standards, such as the Medical Device Rules, the Biomedical Waste Management Rules, the Hazardous Waste Management Rules, the ISO, CE, and FDA certifications, and the price controls and caps, which may increase the cost and complexity of the production and distribution of the products. 

Increasing potential for the value addition, product differentiation, and branding, especially in the segments of implants, prosthetics, and diagnostics. The states have an opportunity to increase the potential for the value addition, product differentiation, and branding, especially in the segments of implants, prosthetics, and diagnostics, which have a higher value and demand in the market. The states can invest in the research and development, technology transfer, and innovation activities, to create and improve the products, which offer better performance, convenience, and outcomes to the users, and create a differentiation and value proposition in the market. The states can also invest in the marketing and promotion activities, to create and enhance the brand image and reputation of the products, and to attract and retain the customers. 

Increasing pressure on the margins and profitability, especially due to the price controls and taxation policies. The states face increasing pressure on the margins and profitability, especially due to the price controls and taxation policies, which affect the viability and sustainability of the products. The states have to deal with the price controls and caps imposed by the government on some of the products, such as stents, knee implants, and masks, which reduce the revenue and profit of the products. The states also have to deal with the taxation policies, such as the goods and services tax, the customs duty, and the income tax, which increase the cost and burden of the products. 

Increasing opportunities for the collaboration and integration, especially with the other related industries, such as pharmaceuticals, biotechnology, and IT. The states have an opportunity to increase the opportunities for the collaboration and integration, especially with the other related industries, such as pharmaceuticals, biotechnology, and IT, which are complementary and synergistic to the surgical and medical industries. The states can collaborate and integrate with the other industries, to create and improve the products, which offer better functionality, compatibility, and interoperability to the users, and create a competitive advantage in the market. The states can also leverage the strengths and expertise of the other industries, such as the research and development, technology, quality, and innovation, to enhance their capabilities and performance. 

Increasing risks and uncertainties, especially due to the pandemic, natural disasters, and geopolitical issues. The states face increasing risks and uncertainties, especially due to the pandemic, natural disasters, and geopolitical issues, which affect the production and distribution of the products, and the demand and supply of the market. The states have to deal with the pandemic, such as the COVID-19, which has disrupted the supply chain, affected the demand, and increased the safety and hygiene requirements of the products. The states also have to deal with the natural disasters, such as floods, cyclones, and droughts, which have damaged the infrastructure, affected the availability of resources, and increased the relief and rehabilitation needs of the products. The states also have to deal with the geopolitical issues, such as the trade wars, sanctions, and conflicts, which have affected the relations, regulations, and opportunities of the products. 

Production Scale (kg/hour) 

Investment (Rupees) 

500 

1.5 crore 

1000 

3 crore 

1500 

4.5 crore 

2000 

6 crore