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Mexico, Brazil, the UK, Poland and Canada have emerged as high-growth markets for medical equipment, but India's export share in these markets remains modest, creating an opportunity for Indian manufacturers to expand their presence, according to a study by India Exim Bank, a government-owned financial institution that finances and promotes India's international trade.
The study identified overseas markets where medical device imports grew above the global average during 2022-2024 and where the countries accounted for at least a 1 per cent share of global imports in relevant categories. For medical equipment, Mexico, Brazil, the UK, Poland and Canada were identified as the top five high-growth markets. For orthopaedic equipment, the high-growth markets included Mexico, Ireland, Poland, Russia and the US. The study also identified Hungary, Turkey, Vietnam, Hong Kong and Mexico as high-growth markets for personal protective equipment, while Australia, the UK, Saudi Arabia, Italy and Singapore were identified as high-growth markets for consumables and disposables. The report said the gap between rising import requirements in these markets and India's limited presence offers scope for Indian manufacturers to expand exports and diversify their markets. "The identified markets show strong demand, but Indias export share in their imports remains modest. The gap between their rising import needs and Indias limited presence offers potential to expand to these markets," the study said. It suggested targeted efforts, including regulatory alignment, support for country-specific compliance and focused trade promotion, to help Indian manufacturers enter these markets and strengthen India's position in global medical device value chains. The export opportunity comes against the backdrop of continued import dependence in India's medical device industry. The study said India's medical devices trade deficit stood at USD 4.9 billion in 2024. India's export basket remains skewed towards low- and medium-tech products, while imports are dominated by high-tech medical devices. The study said increasing domestic production of components, electronics, advanced materials and IVD inputs could help reduce supply-chain risks and strengthen domestic manufacturing capabilities. Research and development remains another area requiring greater attention. India's R&D spending is at 0.7 per cent of GDP, and the study said low public and private funding, inadequate infrastructure and limited industry-academia collaboration restrict the ability to develop innovative medical technologies. The report further highlighted the need for skilled workers with expertise in advanced engineering, artificial intelligence, Internet of Things integration, precision engineering and regulatory compliance. It said an industry-oriented curriculum would be required to upskill and reskill workers to meet global standards, including FDA and CE requirements and GMP practices. India's recent free trade agreements provide an opportunity to expand medical device exports, with the study citing access to markets including the UK, UAE, New Zealand, Oman, EFTA members and the EU. India's global medical device export share was 1 per cent in 2024, while the National Medical Devices Policy 2023 aims for India to reach a 10-12 per cent global market share by 2047. The study said India needs to move towards a technology-driven, high-value medical device manufacturing hub by deepening component manufacturing, scaling R&D, improving skills, strengthening quality infrastructure and aligning regulations with global standards. (ANI)
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