Indian medical tech equipment mkt to touch $5 bn by 2012.

The medical technology equipment market in India is pegged to touch $5 billion (around Rs 23,300 crore) by 2012, growing at an annual rate of nearly 15 per cent, on rising demand from urban customers, says a report.

According to the report -- Medical Technology Industry in India, by industry chamber CII and consulting firm Deloitte, the medical technology equipment market in India was valued at $2.76 billion in 2008, a growth of about 14 per cent over 2007.

"The market is estimated to reach $5 billion by 2012, with an annual growth rate of nearly 15 per cent," it said.

Explaining the growth drivers of the segment it said: "The Indian consumer, especially in the urban areas is increasingly becoming more aware about the latest medical technologies available in the market and consequently demanding the same."

At the same time awareness among providers is also increasing due to training and education workshops and seminars being conducted by industry members. This has driven up demand for new medical technologies, the report added.

Majority of Indian medical technology equipment market is dominated by medical instruments and appliances used in specialties such as ophthalmic, dental and other psychological classes.

"This segment accounts for about 25 per cent of the market, followed by orthopaedic, prosthetic segment accounting for 20 per cent of the total market," it said.

The remaining segment includes endoscopy, cardiovascular control and healthcare IT equipment.

High end medical technology equipment products are largely imported into India, with imports constituting about 75 per cent of the total market, the report said.

"It is interesting to note that while India's medical technology industry is primarily import dependent, at the same time nearly 60 per cent of what is being manufactured is being exported," it added.

Source : Business Standard