The number of clinics and hospitals have increased almost four times than in the 1950‘s. India's health care sector is becoming increasingly lucrative for U.S. medical device manufacturers. India is home to nearly one billion people, and its economy is slowly opening its doors to market capitalism. The growing middle class, estimated at 150 million, is increasingly demanding better access to health care. Responding to this demand, the Indian private sector is building hospitals equipped with advanced technologies in the areas of cardiology, neurosciences, radiology, oncology, etc. One such hospital chain is Apollo. In the next five to seven years, the private sector is expected to invest about $1.5 billion in speciality hospitals in India. These hospitals may be investing approximately $200-250 million in medical equipment after construction is completed. Annually, the new hospitals are expected to invest an estimated $20-25 million in medical supplies.

 

This has also increased the demand for medical equipments which has made the medical device sector as one of the most promising markets in India. The demand for medical equipments is rising annually at an impressive rate of 15 %. The Indian Healthcare sector has seen progressive increase in investments in healthcare infrastructure and facilities, especially hi-tech medical devices.Most Indian healthcare institutes use foreign medical equipments for the purpose of surgery, diagnosis of cancer and medical imaging.  The government has identified healthcare as a priority section and hence have taken some measures to promote one of its most important segment “Medical Device Market”.. Import license requirements have been cancelled, majority-owned subsidiaries are possible, and dividends can be paid out abroad. 

Some other policy  measures introduced are: 

1.  Reduction in import duty on medical equipment from 25 per cent to 5 per cent. 
2.  Depreciation limit on such equipment rose to 40 per cent from 25 per cent, to encourage medical equipment imports. 
3.  Customs duty reduced to 8 per cent from 16 per cent for medical, surgical, dental and veterinary furniture. 
4.  Customs duty on as many as 24 medical equipments, which include X-ray, goniometry and teletherapy stimulator machines, has been reduced to 5 per cent. 

 
Indian medical device market potential: 

1.  Cancer diagnostic, 
2.  Medical imaging, 
3.  Ultrasonic scanning, 
4.  Plastic surgery equipment, 
5.  Polymerase chain reaction technologies