India Expands Market Share in Germany’s MRI Sector as Bilateral Pharma Ties Strengthen

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India’s pharmaceutical and medical technology sectors are making significant strides in Germany, with recent data highlighting a surge in the export of Magnetic Resonance Imaging (MRI) apparatus to the European giant.

According to a recent report by the Press Trust of India (PTI), citing data from the Ministry of Commerce, India has significantly expanded its market share in Germany’s Magnetic Resonance Imaging (MRI) apparatus sector. In 2023, India’s export share in the German MRI market rose to 1.7% from a modest 0.45% in 2022. This substantial growth is marked by an increase in the value of exported MRI machines, soaring from USD 2.93 million in 2022 to USD 13.02 million in 2023. 

India’s emergence as the sixth-largest exporter of MRI apparatus highlights its growing influence in the global medical technology arena, where the United Kingdom currently leads with exports valued at USD 460 million. This rise in exports is aligned with India’s broader focus on expanding its footprint in the pharmaceutical and medical device manufacturing sectors, both of which are prioritized under the government’s Production-Linked Incentive (PLI) scheme. 

India-Germany Pharmaceutical Market Dynamics

The pharmaceutical industry is a cornerstone of India’s “Make in India” initiative, which aims to bolster domestic manufacturing and attract foreign investment. Germany, with its advanced healthcare sector, represents a critical market for Indian exports. 

In 2023, Germany imported pharmaceutical products from India worth USD 1.02 billion, according to the United Nations COMTRADE database on international trade. Germany’s healthcare sector is one of the most lucrative in Europe, with current healthcare expenditure reaching €474.1 billion in 2021. 

This marked a 7.5% increase from the previous year, underscoring the growing demand for healthcare services and products. As the population ages and chronic diseases become more prevalent, the need for advanced medical technologies, including MRI apparatus, continues to rise. India’s growing population and expanding healthcare needs make it an attractive market for German pharmaceutical companies. 

The bilateral trade relationship between India and Germany, already the strongest between India and any EU member state, is poised for further growth, particularly in the medical and health technology sectors. 

German Pharmaceutical Presence in India: A Growing Investment Landscape

Several German pharmaceutical companies have established a strong foothold in India, leveraging the country’s vast market potential and skilled workforce to drive growth and innovation. This collaboration is increasingly crucial, given Germany’s substantial healthcare expenditure, which reached €474.1 billion in 2021—up by 7.5% from the previous year. This surge reflects the rising demand for healthcare services and advanced medical technologies as the population ages and chronic diseases become more prevalent. 

SCHOTT AG has significantly increased its investment in India, particularly in the pharmaceutical glass manufacturing sector. The company inaugurated a new melting tank in Gujarat, with an investment of approximately €25 million. This expansion is part of SCHOTT’s broader commitment to invest over €47 million in its Indian operations, aiming to double production capacity to meet the rising demand for pharmaceutical packaging. In fact, SCHOTT glass has been responsible for almost 95% of COVID-19 vaccine packaging in India.

Merck Group, a leading global player in pharmaceuticals, chemicals, and life sciences, has been operational in India since 1967. With production sites in Goa, Bangalore, and Maharashtra, Merck has recently expanded its infrastructure to cater to India’s growing pharmaceutical market. The company’s collaboration with the Heavy Water Board is set to drive growth in the production of deuterated compounds, a market estimated to be worth around $100 million with significant potential over the next decade. 

Boehringer Ingelheim, one of the fastest-growing multinational pharmaceutical companies in India, has been operating in the country since 2003. Ranking 8th among multinational corporations (MNCs) in India, Boehringer Ingelheim operates across three main business areas: Human Pharmaceuticals, Animal Health, and Clinical Operations. The company has entered into strategic alliances with Indian pharmaceutical giants Lupin Ltd and Torrent Pharma Ltd. to enhance diabetes management through the sale and co-marketing of innovative products like Empagliflozin and Linagliptin. 

These partnerships have transformed the lives of over 2 million patients annually by improving access to advanced diabetes treatments. Boehringer Ingelheim’s commitment to research and innovation continues to drive the introduction of new products in India, addressing unmet medical needs and fostering a robust healthcare ecosystem. 

In a recent initiative, Boehringer Ingelheim India partnered with the Startup Incubation and Innovation Centre (SIIC) at the Indian Institute of Technology Kanpur (IITK) to strengthen their collaboration on healthcare innovations. The company has also been recognized as a “Top Employer 2024” for the second consecutive year, an accolade awarded by the Top Employers Institute, which acknowledges excellence in people practices and organizational culture.

Human Diagnostic Tools has been a key player in the Indian diagnostic market since the 1990s, offering a wide range of in-vitro diagnostic products. In a recent joint venture with Medsource Ozone Biomedicals, the company launched Human Diagnostics India (P) Ltd. The venture aims to enhance the availability of high-quality diagnostic products in India, aligning with the government’s ‘Make in India’ initiative. 

Fresenius SE & Co. KGaA, known for its expertise in kidney care and clinical nutrition, has been operating in India since 1995. With production facilities in Maharashtra and Goa, Fresenius Kabi, a subsidiary of Fresenius SE, continues to be a leading supplier of essential drugs and medical devices in the Indian market. 

Conclusion

As India’s market share in Germany’s MRI apparatus sector continues to grow, so too does the broader pharmaceutical and medical technology relationship between the two nations. The collaboration between India and Germany, exemplified by significant investments from German pharmaceutical companies, is set to drive innovation and growth in both countries’ healthcare sectors. 

With Germany’s healthcare expenditure on the rise and India’s burgeoning market demand, the future of Indo-German cooperation in this sector looks increasingly promising. As both countries continue to invest in their healthcare sectors, this partnership is set to foster innovation, improve patient outcomes, and drive economic growth in both markets.