New Delhi, May 19: India’s orthopaedic and cardiac implant sector, including exports, is expected to reach

$4.5 to $5 billion by FY28, driven by strong domestic demand and gradually growing export presence, according to

a report released on Monday. The sector (including exports) stood at $2.4 to $2.7 billion in FY24, according to CareEdge Ratings. The Indian implant manufacturers are making rapid strides in the domestic market and are gradually expanding their

presence in the export market. The report cited that with only 7.5 per cent customs duty on the import of most coronary and orthopaedic implant

products, any potential trade deal with the US resulting in tariff reduction is not likely to materially change the market

dynamics for domestic manufacturers. However, material changes in non-tariff barriers, such as the relaxation of price caps, can significantly alter the

competitive landscape for domestic manufacturers compared to MNCs, it added. Sales of homegrown implant manufacturers have grown at a compound annual growth rate (CAGR) of 28 per cent

(including a CAGR of 37 per cent for exports) during the four years ended FY24, outpacing the sales CAGR of

12 per cent for foreign multinational corporations (MNCs) during the same period. The sales volume growth of domestic entities was even higher, driven by their competitive pricing and increased

participation in government-sponsored insurance schemes. “India's medical implant sector is on a robust growth trajectory, driven by strong domestic demand and growing

exports,” said Krunal Modi, Director at CareEdge Ratings. India’s export growth rate for implants has significantly outpaced the implant imports during the last 5-6 years. Increasing per capita income and affordability, rising healthcare awareness, an ageing population, expansion in

healthcare infrastructure, and increasing insurance penetration are expected to drive the domestic demand for

implants in the long term, said the report. Price caps adversely affected the foreign MNCs’ high-margin products, forcing them to discontinue some of their

premium products from the Indian market. However, it significantly improved affordability, especially for implants manufactured by domestic companies, thereby

enabling them to expand their market share. Schemes like Ayushman Bharat further improved the affordability and

expanded the market, according to the report. (IANS)