India’s Orthopaedic and Cardiac Implant Sector Poised to Touch $5 Billion by FY28: CareEdge Ratings

Mumbai: According to CareEdge Ratings, India’s orthopaedic and cardiac implant sector, including exports, which stood at ~$2.4 to $2.7 billion in FY24, is expected to reach ~$4.5 to $5.0 billion by FY28, driven by strong domestic demand and gradually growing export presence.

Foreign MNCs, with their long track record of safety and efficacy, have built trust among medical practitioners, which has led to their dominance in the Indian market. However, Indian implant manufacturers are making rapid strides in the domestic market and are gradually expanding their presence in the export market. CareEdge Ratings cited that with only 7.5% 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.

Homegrown companies are gaining share and expanding in the export market

Foreign MNCs had a dominant market share of more than 90% in value terms in India’s orthopaedic and cardiac implant market during the pre-COVID period. However, India is gradually reducing its dependence on imports. Sales of homegrown implant manufacturers have grown at a compound annual growth rate (CAGR) of 28% (including a CAGR of 37% for exports) during the four years ended FY24, outpacing the sales CAGR of 12% 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.