Medical devices Cost is acceptable?

India depends on imports to supply its healthcare system with medical technology.  Medical devices industry was valued at US$3.5 billion in 2015 and could expand to approximately US $4.8 billion by 2019. $5.8 billion is the total medical device consumption rate in the country. This is a more profit business than pharma industry.  Telangana Medical Devices Park launched on June 2017 Patancheru mandal in Medak district, 14 companies come forward for this project. 

Though it is a good business opportunity but it pushes consumer into financial crisis.  Hip replacement Imported rate is Rs.25000-Rs.42,000, MRP  is Rs.62,000 to Rs.1,30,000.  The imported hip and knee implants easily see profit margins in the range of 500-1,000%.

Industry experts say the reason as product purchase rate is high and Hospitals take 30% as share. Indian implants too are sold at margins of 200-500%, though surgeons often prefer imported types. 

The cost of intraocular lenses also varies widely depending on the hospital and the operating surgeon.   75% of Medical devices which are imported are currently treated as drugs under the Drugs and Cosmetics Act. Central Drug Standard Control Organization was helpless to segment both the flood of substandard imports as well as the production of poor devices,

Another threat for manufactures in India is competing with low-cost Chinese products.  The government can take several measures to create an effective environment to consolidate the growth of the medical devices sector. Creating an autonomous body to oversee the regulatory framework for medical devices industry is one of the solution should be done by the government.

References

http://timesofindia.indiatimes.com/india/insurers-to-bat-for-cutting-cost-of-stent-ops/articleshow/57261639.cms

https://www.emergogroup.com/resources/market-india
http://www.financialexpress.com/industry/why-2017-is-a-landmark-year-for-the-medical-device-industry-in-india/550425/