According to a report jointly done by FICCI and PwC, the market size of the sector in 2008 stood at $2.7 billion (Rs 12,350 crore).
“Strong economic growth, increased burden of diseases, higher public spending and private investments in healthcare and increased penetration of health insurance are the key drivers for the growth in the sector,” the study said. The report reveals that there is a huge scope for innovation in the industry, as there is a big demand for it in the local market.
It said, the epicentre of the innovation in this field is shifting towards emerging economies like India and China, since the advanced economies like USA, UK, Germany, France and Japan do not have the need for frugal innovation.
“Also, the emerging economies will have a higher spending on R&D in the future, which will provide the trigger for innovation, therefore, witnessing more funding from venture capital, private equity,” the study said. The report said, besides, the success in medical technology innovation would depend on factors like a supportive investment community, creating capacity for quality research and demand and supply of health services.
Further, it is important that the government increase public spending in healthcare to three per cent of the country’s GDP from 1 per cent currently and evolve medical technology clusters with common facilities for calibration and testing facilities to benefit small entrepreneurs.