Singapore, Aug 24, 2010: As the GDP growth rate in India nears 9 percent, diagnostic manufacturers are gearing up to collect their share of the IVD market, which, according to healthcare market research publisher Kalorama Information, is expected to enjoy a 15 percent growth rate through 2014. Private companies are marching ahead of the public sector, as laboratory chains prepare to meet the growing medical needs of the 1.18 billion people living in India. However, the report notes that such strong growth is producing a shortage of reagents on the market.

Low costs and a readily available talent pool are promoting growth efforts in the IVD market –— mainly low cost and speedy registration of new products and an exponentially increasing number of university graduates. According to Kalorama, notable companies, such as SRL Ranbaxy, Dr Lal PathLabs, and Quest are building new laboratories, often engaging in partnerships with the public sector. This immense cycle of growth is leading to a shortage in the availability of reagents, as private and public sectors compete for supplies from a growing reagent rental program.

"It's not surprising to see a shortage of reagents in the market," said Mr Bruce Carlson, publisher of Kalorama Information. "With the considerable growth in India, there is likely to be a shortage of some medical supplies at various times."

Metropolitan growth in India has led many of India's rural citizens to flock to its new urban centers, increasing prosperity, insurance availability and the number of individuals willing to pay for healthcare. The Kalorama report also notes government activity, which has made strides in promoting medical tourism, attracting foreign patients interested in paying less for similar healthcare services offered in the west.