With Covid-19 pandemic underlining the need for scaling up local capacity in manufacturing, the $1255.88 million India In-vitro diagnostics market is in the cusp of an exponential growth cycle with a projected annual growth rate of 7.10% till 2026.
Major factors that are driving the growth of the Indian in-vitro diagnostics market are the high prevalence of chronic diseases, increasing use of point-of-care (POC) diagnostics, and rising awareness and acceptance of personalized medicine and companion diagnostics.
Emerging technological innovations in healthcare, such as bio-sensors, lab-on-a-chip, wearable devices, and POC diagnostics are increasingly becoming an important part of the healthcare landscape adding tailwinds to the sector.
Notably, POC testing helps bring testing closer to the patients and get quick results for the healthcare provider to expedite diagnoses and subsequent treatment. This is likely to increase the adoption of in-vitro diagnostics in India. However, stringent regulatory policies and lack of sufficient reimbursement norms are weighing on the market growth of the in-vitro diagnostics sector. However, the sector by and large being dominated by foreign players may have to scale up local presence to get the benefits of incentives under schemes like PLI and Atmanirbhar Bharat Abhiyaan.
“We are of the view that the Indian IVD industry is at an inflection point with high growth visibility and earning potential ever since the outbreak of Covid-19 pandemic. There is more than one reason to believe so. First, the rapid spread of infection has tested the nation’s resolve to diagnose new virus and its variants highlighting the express need to ramp up local capacity. The sector also has to prepare itself for any eventuality as the cycle between the outbreaks of epidemics has been rapidly shrinking,” according to Dr Veeraal Gandhi, Chairman and Managing Director, Voxtur Bio Ltd.
He further added, “Second, there is also a felt need for increased local manufacturing since Covid has taught us the importance of domestic production of testing equipment. We see foreign players with flexible and cutting edge technology seeking out local partners for collaborations to make affordable testing tools going forward. An encouraging regulatory eco-system with the right incentives in place will see this space growing at a rapid pace with faster technology adaptation leading to cost reduction and lower prices. The key, however, is increased localization of production.”
The In Vitro diagnostic Kit business in India has exponentially grown in the last two years. Covid has medically educated individually the importance of blood tests. Even corporates involved in the medical fraternity are now actively thinking of entering in the IVD industry. The importance of IVD businesses now is seriously thought of in India. Now, Indian manufacturers assemble these kits but the day is not far when they will be actively treated as a whole-time manufacturer.
“Indian IVD manufacturers are now also planning to enter in core manufacturing of raw material used for these Kits. More companies have been involved in R&D of these products. Government PLI scheme will certainly boost the morale of this industry. New entrants will certainly utilize the benefit of this scheme and companies existing in this industry will certainly expand exponentially by increasing the production capacity. By promoting such a PLI scheme, the Government will also encourage manufacturers to promote more exports,” said Sachidanand Upadhyay, Founder, Lord’s Mark Industries Pvt. Ltd.
The in-vitro diagnostics market in India is on the cusp of traversing an exponential growth cycle with an annual growth projection of 7.10% till 2026. The COVID-19 pandemic has necessitated the need to scale up local manufacturing capacity with a focus on driving greater operational efficiency. High prevalence of chronic diseases, increase in the use of point-of-care (POC) diagnostics and rising awareness and mass acceptance of personalized medicine have emerged as supportive factors to propel the Indian IVD industry on a high-rise growth trajectory.
“With the Modi government rolling out a PLI scheme for the medical devices manufacturing sector, IVD manufacturers will be incentivized to boost their domestic manufacturing output and improve cost competitiveness of Indian devices in the global market. With a clear focus on reducing import bills, the scheme also offers incentives on incremental sales of products manufactured in India. Healthcare MNCs like Roche and Abbott may need to scale their local presence to leverage the benefits of schemes like PLI and Atmanirbhar Bharat Abhiyaan,” concluded Ankur Gupta, Associate Partner, Singhi Advisors.
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