According to a survey issued on Monday, robust local demand and steadily increasing export presence are likely to propel India’s orthopedic and cardiac implant market, including exports, to reach $4.5 to $5 billion by FY28.

According to CareEdge Ratings, the industry (including exports) was valued between $2.4 and $2.7 billion in FY24.

Indian implant producers are steadily increasing their market share in the export industry while making quick progress in the home market.

According to the analysis, any prospective trade agreement with the US that results in a decrease of tariffs is unlikely to significantly alter the market dynamics for local producers since the majority of coronary and orthopedic implant goods are imported with a customs charge of just 7.5%.

It also said that substantial adjustments to non-tariff barriers, including lowering price ceilings, might drastically impact the competitive environment for local producers in comparison to multinational corporations.

Over the four years ending in FY24, the compound annual growth rate (CAGR) of domestic implant makers’ sales increased by 28% (including 37% for exports), surpassing the 12% CAGR of overseas multinational corporations’ (MNCs’) sales during the same time frame.

Due to their competitive pricing and more involvement in government-sponsored insurance programs, domestic firms saw an even greater gain in sales volume.

Director of CareEdge Ratings Krunal Modi said, “India’s medical implant industry is on a robust growth trajectory, driven by strong domestic demand and growing exports.”

Over the last five to six years, India’s implant export growth rate has far exceeded its implant import growth rate.

Long-term domestic demand for implants is anticipated to be driven by factors such as increased healthcare awareness, an aging population, expanding healthcare infrastructure, rising per capita income and affordability, and rising insurance penetration, according to the research.

Foreign multinational corporations were forced to withdraw some of their high-end items from the Indian market as a result of price limits negatively impacting their high-margin products.

Nonetheless, it greatly increased affordability, particularly for implants made by local businesses, which allowed them to increase their market share. According to the research, programs like Ayushman Bharat increased market size and further enhanced affordability.