2024 recap – India’s MedTech industry gears up for a transformative 2025

As we bid farewell to 2024, India’s MedTech and in-vitro diagnostics (IVD) industry continues to be a testament to resilience, growth, and innovation. The sector has experienced considerable development, driven by government initiatives, increased foreign investments, and rapid technological advancements. However, as with any rapidly advancing field, challenges remain, creating opportunities and tasks for the year ahead.

Major achievements in 2024
Government-backed growth initiatives. The production-linked incentive (PLI) scheme has boosted domestic manufacturing in the MedTech sector with a USD 400-million incentive, reducing reliance on imports. By September 2023, it contributed to producing 39 medical devices, advancing India’s self-reliance. The National Medical Devices Policy 2023 further supported the development of medical devices parks in key states, reducing costs and enhancing India’s global competitiveness.

Increased foreign direct investment and domestic production growth. India’s 100-percent foreign direct investment (FDI) policy for greenfield and brownfield MedTech projects has attracted global investors, driving collaborations that bring advanced technologies to the country. Companies like Siemens Healthineers and GE Healthcare have expanded in India, fueling the sector’s growth, which is projected to reach USD 50 billion by 2030.

Promotion of research and development. The government launched the Promotion of Research and Innovation in Pharma MedTech (PRIPM) scheme to foster innovation by funding Centers of Excellence (CoEs) and research in priority areas like medical devices and antimicrobial resistance. With a budget of ₹700 crore for CoEs and ₹4250 crore for research, the scheme aims to advance India’s MedTech ecosystem.

Growth of the IVD market. India’s IVD market is growing rapidly, driven by rising healthcare awareness, preventive care, and lifestyle diseases. It is valued at USD 1.24 billion in 2019 and is projected to reach USD 2.06 billion by 2027, with a 7.5-percent CAGR. Innovations in molecular diagnostics, point-of-care technologies, and broader insurance coverage are making healthcare more accessible.

Unfinished tasks for 2025
Strengthening healthcare access in remote areas. Despite advancements, India faces challenges in extending healthcare to remote areas. Expanding telemedicine, mobile diagnostics, and improving infrastructure are key steps. The government’s focus on medical devices parks could reduce costs, making diagnostics more affordable and accessible.

Environmental sustainability in medical waste management. As the MedTech sector expands, so does the need to address sustainability. India must adopt sustainable manufacturing practices and develop eco-friendly alternatives to manage medical waste, particularly for single-use devices. Initiatives, such as biodegradable materials and reducing single-use plastics, can play a crucial role as global concerns over environmental impacts continue to rise.

Developing a skilled workforce for emerging technologies. The rapid growth of AI-driven diagnostics and telemedicine in India has created a demand for a skilled workforce. Specialized training programs, supported by collaboration among educational institutions, private enterprises, and the government, are essential to meet the sector’s needs.

Enhanced data security and regulatory frameworks. As digital health technologies and AI integration become more prevalent, ensuring data security and patient privacy has become crucial. India’s National Digital Health Mission is leading the way by establishing a secure and interoperable digital health ecosystem. This initiative sets the groundwork for robust regulatory frameworks to protect patient data and promote ethical AI practices within the healthcare sector.

Expectations for 2025
Expansion of local manufacturing and export opportunities. India’s focus on self-reliance, as seen through the Atmanirbhar Bharat program, is expected to bolster local manufacturing efforts further. With an eye on exports, Indian companies increasingly contribute to the global MedTech supply chain. The Indian Brand Equity Foundation (IBEF) projects that the Indian medical devices market will reach USD 50 billion by 2025, presenting a robust platform for expanding into international markets.

Increased adoption of wearable and home diagnostics. The demand for wearable technology and at-home diagnostic solutions is likely to grow. These technologies enable real-time health monitoring and proactive disease prevention. They will play a crucial role in managing India’s rising chronic disease burden, particularly in rural and remote areas where traditional healthcare access is limited.

Strengthened public-private partnerships. Public-private collaborations are expected to expand, particularly in research and innovation. The government’s efforts to foster industry-academia partnerships, such as through the Indian Council of Pharma and MedTech R&D, will accelerate the development of innovative solutions tailored to India’s healthcare challenges. These partnerships are essential for creating a resilient MedTech ecosystem that meets the country’s unique healthcare demands.

Closing thoughts
India’s MedTech and IVD industry made significant strides in 2024, setting the stage for continued growth in 2025. The sector is poised for even more remarkable achievements with strong government support, increased foreign investments, and a heightened focus on research and development. Addressing healthcare access, sustainability, workforce development, and data security will be vital. As India bids farewell to 2024, the future of its MedTech and IVD industry promises innovation, self-reliance, and global competitiveness.

Views expressed are personal.