India’s economy is expected to grow 7.5% in the year ahead, driven by ever-growing demand for energy, infrastructure, and technology and high-quality healthcare. I’ve traveled to India to see what’s happening.
On my first visit to India, which was structured by prominent serial entrepreneur, Ritika Hiranandani, I had the opportunity to interact with that nation’s \leading experts in healthcare and technology. I had an incredible experience- learning the Indian culture, seeing the hard working and enthusiastic embracers of democracy, witnessing a clearly growing Indian economy. I really enjoyed the path of learning the intricate nuances of doing business in India.
The healthcare sector of India was estimated to be $75 billion during fiscal year 2012-13 and it is projected to reach $300 billion by 2020. Within the healthcare industry, the life science, biotechnology, pharmaceutical and diagnostics play an important roles in attracting foreign players to India.
India is already an extremely attractive market opportunity for global medical device manufacturers: 70% of India’s medical devices and equipment are outsourced from other countries, particularly from the U.S. Medical device companies that have been approved in the U.S., Europe, Canada, Japan or Australia can legally sell in India.
Importantly for U.S. companies, India’s medical devices industry this year will be opened up to 100% foreign direct investment. With healthcare being one of the most dynamic and growing sectors, the decision to change the investment route should have an instant impact on the shares of domestic Indian medical device manufacturers.
The new FDI cap should increase foreign investment in India’s domestic medical device industry. However, companies should be prudent when planning their India strategy. Having the right relationships is obviously important early on.
The type of entity to choose to do business with, and knowledge of doing business in India, along with the medical devices industry’s regulations is absolutely necessary. I am clearly already looking forward to my next trip to India.