The medical device sector is one of the most promising markets in India. In 1993, total medical equipment sales approached $550 million, with almost $350 million of that total accounted for by imports. Domestic production consists primarily of low technology products: demand for high technology devices is met predominantly by imports. Moreover, India's medical device market relies heavily on the government, which accounts for 78% of the country's $1.25 billion in annual R&D spending.

At present, the three leading exporters of medical devices to India are the United States, Japan, and Germany. Although imports constitute over half of the total Indian market, the proliferation of new joint ventures will erode this share slightly. Wipro-GE, Hewlett-Packard, Toshniwal Brothers, Medi Systems, Ltd., and other firms have already signed joint venture agreements. However, there is plenty of opportunity for U.S. device manufacturers to increase their market share over the next few years. Even more alluring than the size of the market is its projected growth: 15% annually through the year 2000. Some of the best sales prospects in the Indian medical device market include cancer diagnostic, medical imaging, ultrasonic scanning, and plastic surgery equipment, as well as polymerase chain reaction technologies. According to the U.S. Commerce Department, the Indian market for ultrasonic scanning equipment topped $21 million in 1994, helped by demand from the new hospitals and clinics opening as part of the national health-care plan. Another promising sector is the $12-million-plus market for cancer diagnostic equipment. Cancer is the sixth-leading cause of death in India, and awareness of the disease has increased greatly in recent years. Imports constitute 80% of the market for cancer diagnostic equipment.