2017 promises to be an action-packed year for investors, notwithstanding the headwinds from the government’s recent demonetization move and weak global cues from Brexit and USA, where Donald Trump delivers the most American speech at his swearing-in ceremony while the rest of the world prepares for a rough ride.
While Indian MedTech market is anticipated to grow from Rs.25,595 crore in 2016 to Rs.36,456 crore in 2020, reflecting a five-year CAGR of 9.6 percent, the industry may find itself in a not-so-comfortable situation this year. With Trump’s quest for a strong dollar and higher interest rates undermining all emerging market currencies, including the rupee, the highly import-dependent MedTech industry could be in for a setback.
Medical tourism is also in for attack with studies being released showing India as the country from where travelers are most likely to return with digestive tracts colonized by ESBL-producing bacteria and also displaying antimicrobial resistance.
However, the medical fraternity is not to be deterred. Various hospitals have announced their expansion plans. Odisha government is planning to invest Rs.424 crore and build six hospitals; Rs.200 crore have been allocated by the government for setting up a digital campus of NIMHANS in Bengaluru; a Rs.75-crore facility is being set up by the state government in Jharsuguda; three primary health centers are being set up by the Punjab government in Gurdaspur, Tarn Taran, and Dhariwal Uddar; a 300-bed medical college and hospital is planned at Gurgaon; Apollo Hospitals Enterprise is raising Rs.200 crore; and Prathima Hospitals is planning a Rs.350-crore expansion.
AIIMS is poised to lead the way as it leapfrogs the technology divide by adopting cutting-edge processes and technology in all aspects of its operations. The overall budget for AIIMS in 2017-18 will exceed Rs.4500 crore. Of this, Rs.3000 crore will be on infrastructure development and equipment purchases. This is in addition to the machinery and equipment procurement for National Cancer Institute at AIIMS Delhi’s second campus at Jajjhar amounting to Rs.729 crore being planned for procurement this year.