India has the fourth largest medical devices market in Asia and is one of the top 20 markets in the world. The current market size of the medical devices sector is estimated to be USD 11 billion, and it is growing at an unprecedented scale. The industry is projected to register a CAGR of 14.8% and develop into a USD 65 billion industry by 2024. In the last five years, this sector saw a record foreign investment of USD 600 million, with countries like Singapore, United States, Europe and Japan emerging as the key investors. Within the sector, equipment, instruments, consumables and implants have attracted the most FDI.
With growing demand, the country continues to offer distinct advantages for medical devices companies including a high level of technical expertise and government funding for R&D investment. The medical devices sector has been recognised as one of the ‘priority sectors’ under the government’s flagship 'Make in India' programme. USD 55 million has also been allocated as financial assistance to develop four 'Medical Device Parks' across India. The growing role of technology has once again shone the spotlight on this sector coupled with the growing role of diagnostics and NCDs such as cancer that rely heavily on medical devices.
We work with large medical device manufacturers to build national and state level engagement strategies. Mapped policy developments, analysed business implications and engaged with stakeholders. Covering 18 states, we bring in depth expertise in crafting public private partnerships for healthcare and creating multi stakeholder collaborations with a focus on access and business expansion.
Considered the ‘Pharmacy of the World’, the domestic pharmaceuticals sector is valued at USD 41 billion, with a potential to reach USD 65 billion by 2024 and USD 130 billion by 2030. The sector recorded an export value of USD 24.44 billion for April 2020-March 2021, with 18.71% growth amid a global downturn. For 2021-22, the growth of the sector is further fuelled by the production of COVID-19 drugs, vaccines, anti-infectives, vitamins and minerals amongst others.
The sector is an area of focus and the government has announced multiple schemes including under the AtmaNirbhar (self-reliant) agenda, where it has announced a massive USD 2.5 billion Production Linked Incentive (PLI) scheme as well as bulk drugs park scheme to boost the domestic production of APIs, KSMs, and bulk drugs. Further impetus is being provided through easing of regulatory requirements including the New Drugs and Clinical Trials Rules 2019 towards accelerating timelines for the processing of the applications. Given the potential of technology for healthcare, the E Pharmacy sector is expected to see growth. The segment is likely to reach 70 million households by FY25 from the current 9 million in FY20 and USD 2.7 billion by FY23.
We have in depth expertise having engaged with biopharmaceutical companies, in improving access to critical drugs in the areas of communicable and non-communicable diseases through collaborative partnerships with various levels of government. We have also supported clients in identifying and executing market expansion opportunities for existing and future pipeline products, working at the intersection of policy, business, and marketing support.
India’s education sector is estimated at USD 180 billion for FY20, expecting to reach USD 225 billion by FY25. India’s education system is one of the largest ecosystems in the world. The K-12 education ecosystem has 1.5 million schools, with 9.4 million teachers, and ~250 million students, while the higher education system has 53,620 institutions, 1.4 million teachers, and 35 million students. The internet penetration from the current 622 million users in India to an estimated 900 million by 2025 has further spurred the use of technology in education delivery.
The government is looking closely at this sector with the recently announced National Education Policy (NEP) which is expected to spur investment and introduce new opportunities for engagement and partnership. Amongst this, the NEP 2020 lays down the legislative framework for foreign universities to open Indian campuses, including possibly tackling legacy issues like repatriation of profits. The higher education segment in India is estimated to touch USD 35 billion by 2025. The India ed – tech market has also seen a boost with the K-12 ed-tech market expecting 6.3 times the growth between 2019-2022, while the post K-12 ed-tech market is expecting a 3.7 times growth in the same period. The sector is estimated to grow to USD 300 billion by 2031, as against its current size of USD 700-800 million.
We have supported market leaders in identifying relevant opportunities while addressing assessment challenges in K-12, higher education, and the workforce. We assist clients build their brands in India through identified policy engagements with various Central and State government agencies shaping their assessment framework for education and skill development. Looked carefully at the intersection of research, training and assessment – built coalitions and executed wining propositions.
In recent years, the infrastructure sector in India has been propelled by the Government through policy initiatives that ensure time-bound creation of sustainable infrastructure in the country. Covering power, bridges, dams, roads, and urban infrastructure, the sector has been a cornerstone of partnerships. It is estimated that by 2022, India is slated to becomes the construction capital of the world. The government has also continued to show its commitment to newer avenues such as renewable energy with a share of 23% in total installed generation capacity in 2020; a revamped, reforms-based and result-linked new power distribution sector scheme and a commitment to enhance transport infrastructure with a focus on technology.
The Government also announced the ambitious National Infrastructure Pipeline, with an allocation of USD 1.4 trillion for the years 2019-25. With over 7400 projects across sectors such as energy, roads, urban dvelopment and railways that amount to nearly 71% of the projected infrastructure investments in India, the NIP is the biggest infrastructure push exercise in India. There has been a continued attempt to explore newer avenues to fund India’s infrastructure needs including the setting up of the National Bank for Financing Infrastructure and Development and the launch of Infrastructure Investment Trusts as a new instrument of raising capital.
Working with large investors, providing strategic advisory on the impact of political, regulatory and business developments on investment opportunities. Mapping the Indian investment landscape across roads (national & state), renewable energy, technology, mobility, power (generation, transmission & distribution) and working closely with Urban Local Bodies (ULBs).
Sustainability is fast gaining traction in India with corporates becoming more conscious to the environmental impact of their operations. Recent regulatory developments have also attempted to inculcate this holistic view around reporting requirements. Programs, including those with a focus on Clean India and rejuvenating urban spaces continue to provide opportunities for public private partnership.
Programs such as Swachh Bharat (Clean India) Mission and the Smart Cities Mission present opportunities for the waste management sector. The Government has announced that the urban Swachh Bharat Mission 2.0 will be implemented between 2021-26 with a total financial allocation of approximately USD 20 billion. As per some estimates, proper management of plastic waste alone represents an opportunity of over USD 2 billion. The government has also reiterated its commitment to rebuild India as a circular economy. India produces over 60 million tonnes of plastic waste annually, of which approximately 45 million tonnes are untreated. At present, India recycles only 60% of the total plastic waste produced in the country. India’s Waste Management Market is expected to reach USD 14 billion by 2025 with an annual growth rate of over 7%.
Leveraging our industry experience and network to help international funds navigate the India opportunity. Identifying India partners and structuring business opportunities with a focus on the circular economy and waste management, paving the way for impact investment and environmental sustainability. Strengthened triple bottom line reporting of Indian corporates via sustainability programs.
Nutrition is a critical element of an integrated public health response. The Government of India, in its continued focus is committed to addressing aspects such as malnutrition and ensuring synergies across various schemes - in achieving targets laid down under programs such as Poshan Abhiyan. Fortification, Sustainable Practices through kitchen gardens are some such areas that are bringing together partners towards achieving a holistic vision for nutrition in India.
The Nutraceuticals market has also seen growth in recent times, especially on the back of the recent COVID pandemic. Various reports have estimated that the nutraceutical market in India is likely to grow from USD 4bn in 2017 to USD 18bn in 2025. Many start-ups that use technology to improve nutrition outcomes for the consumer through targeted nutrition, online delivery of meals and overall improvements in the value chain are also emerging.
Worked on areas ranging from childhood malnutrition to food fortification and community participation. Worked towards informed policy making in the space of food supplements and nutraceuticals. Worked on biodiversity preservation assisting nutraceutical (and cosmetics) companies adhere to regulations and building positive voice coalition around critical issues.
The Food & Beverages industry accounts for 3% of India's GDP and is the single largest employer with a 7.3 million workforce. The food and grocery market alone constitutes almost 65 per cent of the total retail market in India. This sector has over 39,000 registered units with fixed capital of USD 32 billion and aggregate output of around USD 158 billion. Revenue in this segment is expected to show an annual growth rate of 10.36% and a projected market volume of USD 11 billion.
By 2030, India is slated to become the 5th largest consumer in the world. With abundant raw material and a huge domestic market for processed food, the opportunities in this industry are set to rise. In addition, rural and semi-urban India has seen a growing demand for processed foods, leading to the potential for growth in allied industries like food processing, logistics, cold storage etc. Under the flagship 'Mega Food Parks' Scheme, 21 food parks are in operation, and 134 more food processing projects have been sanctioned across different states. In addition, a 'Food Processing Fund' of approximately USD 265 million has also been set up by the government for extending credit to designated food parks and individual food processing units.
We have worked with leading brands, in the areas as diverse as business continuity, tracking, meeting regulatory requirements including nutrition standards, labelling, and packaging regulations.
Digital India has been a cornerstone of India’s policy focus covering the IT sector, Digital Villages, Smart Cities, Blockchain and AI. Emerging technologies and optimal regulatory changes now offer new opportunities for companies. India’s IT industry is expected to contribute 10% to India’s GDP by 2025, up from 8% in 2020. IT exports alone in 2020 stood at USD 150 billion. Indian companies are making a mark by integrating themselves in global supply chains with the aim to increase revenue two-fold to USD 350 billion by 2025.
The Government has announced a slew of Programs in its vision to transform India into a digitally empowered society and knowledge economy. The focus on three pillars - Digital Infrastructure as a Core Utility to Every Citizen; Governance & Services on Demand and Digital Empowerment of Citizens. Given the ambitious vision, there is opportunity for interesting partnerships bringing together public and private sector stakeholders.
We have assisted tech giants better appreciate some of the nuanced approaches required while engaging with policy makers. Importantly we have worked at the intersection of tech and allied verticals such as health and fintech. Supporting the discussion on IT Sustainability and carbon footprint reduction.
Global cooperation has grown in its importance over recent years with a focus on international partnerships and strong trade cooperation. At the country level, there have been innovative partnerships to promote global progress, achieve shared goals while trying to overcome all sorts of barriers.
As a natural consequence, companies are less limited by geographical borders and the world is increasingly becoming a large but complicated market. This has allowed companies to explore these new markets, new revenue streams and partnerships that grow businesses strategically.
We have worked on market development for Indian companies via introductions at the Board, CXO and other senior levels globally. Supported compliance and addressed multiple challenges like tariffs in countries across South East Asia and areas as afar as Latin America.