Renal dialysis equipment market in India undergoes a fresh
course of progress in 2016. When the Indian finance minister, Arun Jaitley
declared the Budget 2016, he exempted certain segment offerings from previously
applicable import duties. This directly exposed the patients in need of
dialytic procedures to access better healthcare facilities at low non-insured
costs.
As reported in an official release by the Press Information
Bureau (PIB), each year there are around 2.2 lac new additions to the populace
suffering from chronic kidney diseases in India. A majority of these confirmed
that their annual out-of-pocket expenditure for availing dialysis sessions sum
up to a figure of INR 3 lac. The ruling government responded by stepping up to
the expectations of the people with its “National Dialysis Services Program.”
This program aims at providing fund benefits to those families that cannot sustain
the disbursements made towards accessing regular dialytic care for the
suffering member. The government also addressed the issue of these services
being concentrated within a limited number of healthcare centers. The 4,950
hubs, to provide the service, were mostly privately-owned and were kind of
non-sufficient for the millions of patients in critical need of hemodialysis.
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The governing agencies shortened the gap between the
facility and the recipients by placing dialysis services at the district hospitals
all over the country. The funds directed towards the needy patients will be
provided through Public Private Partnership (PPP) Mode. Exemption from custom,
excise, countervailing, and special addition duties will render the expensive
parts of renal dialysis equipment more affordable.
This has struck a fascinating note in the entire renal
dialysis market in India. The administration at privately owned point-of-care
burdens its consumers with added maintenance charges. A huge drift is due from
the said ‘quality care’ at the fancy healthcare centers towards the ‘necessary
care’ at local district alternatives. Considering the density at the lower
limit of the range of patients that suffer from chronic kidney diseases, the
shift will hurt the large corporate names a bit. Although, the cost-reduction,
effective from the current year, will definitely benefit the latter’s growth.
Dr. Rana Mehta, a partner at the Healthcare Division of the
PricewaterhouseCoopers Ltd (PwC) remarked that the program will directly impact
the private and public segment. According to his forecast, a 5% cutback in
final prices of dialysis equipment will boost the present 9% growth rate of
public dialysis facilities and raise it up to 15–17%. While the private
dialysis centers growing at a CAGR of 15% will be pushed further by 2–3%.
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The Indian economy is gradually surfacing with key roles in
the Asia-Pacific region. The success of the aforementioned program will bring a
defining moment for the leading companies and providers in the industry. All
eyes are now on the repercussions of this development on the renal dialysis
equipment market in Asia-Pacific.
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