Bid goodbye to 2024, and welcome 2025!

The medical device sector is a sunrise sector for the Indian economy. It seeks priority and attention along with other innovations and advancements, as well as building a robust research and development sector to match the emerging needs of the community constantly. Andhra Pradesh MedTech Zone Ltd (AMTZ) is a cornerstone in achieving the targets set for the Indian medical device industry.

The Indian medical device market, valued at USD 11.46 billion, is poised for significant growth and is projected to reach approximately USD 50 billion by 2030. Despite ranking among the top global markets, the industry is predominantly import-driven, constituting around 80 percent of total sales. This import dependency underscores the need for strategic interventions to boost domestic manufacturing and innovation.

AMTZ envisions a self-sufficient medical device ecosystem in India, focusing on building a robust research and development framework along with the government’s Make in India initiative, which aims to decrease import dependency and enhance the export potential of domestically produced medical devices. AMTZ is the only campus in the world that proudly houses the WHO Collaborating Centre for Health Innovation and the World Trade Centre AMTZ (WTC-AMTZ), which would be the crown jewel for trade in Andhra Pradesh.

Key findings

• The total value of medical device exports and imports in India amounts to ₹94,910 crores, or USD 11.46 billion.
• Projections indicate that imports will continue to rise to ₹1,16,105 crore and exports to ₹57,040 crore by 2029-30, leading to an estimated total market size of ₹1,73,145 crore, or USD 21 billion.
• The export-to-import ratio for India’s medical device trade from 2018-19 to 2023-24 demonstrates varying trends by increasing to 45 percent.
• The imports lead with Magnetic Resonance Imaging (MRI) Apparatus, valued at ₹2,630.85 crore. This apparatus is essential for diagnosing conditions such as brain tumors, strokes, and multiple sclerosis.
• Sacks and polyethylene bags (under HS Code 39232100) reached ₹8,523.47 crores (USD 1.03 billion), leading exports with a CAGR of 7 percent.
• Instruments and appliances exhibit the most substantial import growth with a Compound Annual Growth Rate (CAGR) of 14.41 percent.
• The implants segment demonstrated the most remarkable growth, with exports rising from ₹335.24 crores to ₹1,089.53 crores, achieving a CAGR of 27.14 percent.
• Government initiatives like the Production-Linked Incentives (PLI) Scheme and the Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) enhance domestic manufacturing and innovation.
• India’s healthcare and life sciences sector is witnessing significant growth and innovation; there are 19,290 startups, of which 8,504 are recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).

The rise of startups in the MedTech space in India
India’s MedTech industry is on the cusp of explosive growth, driven by robust government initiatives, increased foreign investment, and a rapidly expanding startup ecosystem. While India currently holds 1.5 percent of the global MedTech market, projections show the sector growing at an annual rate of 28 percent, potentially reaching USD 50 billion by 2030. Initiatives like the Meditech Stackathon 2024, PLI Scheme, and the National Medical Devices Policy 2023 are positioning India to become a global leader in medical technology.

Government initiatives. The Indian government has played a pivotal role in driving the growth of the MedTech sector by implementing key policies. Meditech Stackathon 2024 is a transformative initiative to reduce import dependence, promote domestic manufacturing, and address regulatory challenges across eight critical medical device segments, including cancer therapy and diagnostic imaging. The Production-Linked Incentive (PLI) Scheme and the National Medical Devices Policy 2023 are designed to expand the sector to USD 50 billion by 2030, ensuring the highest safety, quality, and innovation standards are upheld.

Investment surge
India’s MedTech sector draws substantial investments from domestic and international players. In 2024, Medtronic announced a USD 362.8 million investment to expand its R&D center in Hyderabad. Similarly, Wipro GE Healthcare is increasing its manufacturing capabilities under the Production-Linked Incentive (PLI) Scheme. Additionally, MedTech hubs like the Andhra Pradesh MedTech Zone (AMTZ) in Vizag, which supports over 145 companies, are helping to position India as a global leader in the MedTech industry.

Challenges and opportunities for startups
Despite the positive outlook, Indian MedTech startups face several challenges. These include limited access to hospitals for testing and deploying new technologies and the need for patient capital—long-term funding that supports the slow product development cycles typical of medical technology. However, initiatives like the Atal Innovation Mission, the National Biopharma Mission, the Meditech Stackathon 2024, and government-backed programs are addressing these bottlenecks. These initiatives foster a collaborative environment that encourages innovation and streamlines regulatory processes.

Role of innovation
Innovation is at the heart of India’s MedTech growth. Indian startups focus on breakthrough solutions in cancer treatment, diagnostic imaging, and assistive devices. Government initiatives like BIRAC and Startup India enable startups to scale their operations and compete globally. Furthermore, partnerships between the public and private sectors and academic institutions are driving research and development (R&D). A prime example of innovation can be seen in AMTZ, which has supported over 120 MedTech startups through its incubators Medivalley and Biovalley, helping them advance and commercialize cutting-edge technologies.

Outlook
With a projected annual growth rate of 28 percent, India’s MedTech sector is set to reach USD 50 billion by 2030. Government initiatives such as the MedTech Mission by the Department of Science & Technology (DST), Ayushman Bharat, and the National Single Window System are expected to streamline regulatory processes further and reduce production costs. As startups continue to innovate and the government maintains its commitment to building infrastructure and fostering partnerships, India is on the path to becoming a major global player in the MedTech industry.
India’s MedTech sector is on the brink of transformative growth. With strong government support, increasing foreign investment, and an innovation-driven startup ecosystem, the industry is set to revolutionize healthcare in India. As more startups enter the market and innovations continue to flourish, India’s MedTech sector will play a pivotal role in providing advanced healthcare technologies to its vast population and the world.

Creation of novel material: Building a stronger MedTech future
The growing need for modern healthcare in India requires the medical device sector to focus significantly on the supply chain challenges, particularly in raw material sourcing, exacerbated by Covid-19 disruptions and the geopolitical outlook. With almost USD 3 billion in medical device raw materials, the manufacturing renders it vulnerable to global supply chain disruptions. Key challenges include import dependence, limited domestic production capacity, quality control and regulatory compliance issues, and inadequate inventory management and logistics. Hence, developing a localized supply chain for medical device manufacturing is essential to building a robust self-reliance in healthcare accessibility and affordability.

India can leverage novel materials and technologies such as biomaterials, nanomaterials, 3D printing technologies, and advanced wound care materials to address these challenges. Developing domestic raw material supply chains, conducting novel material research, and enhancing indigenous technology development and diversification can reduce import dependence, improve supply chain resilience, and boost domestic manufacturing capabilities.

A 9-step novel material development process involving theory, computational modeling, material synthesis, characterization, property optimization, prototype development, testing, validation, scale-up, and commercialization can help achieve these goals, ultimately strengthening India’s healthcare sector and reducing its reliance on imported raw materials.

Once the problem is narrowed down, the requirements can be divided into modular sections, such as electronics, mechanical, chemical, and others. Each section would have a particular set of critical components that may require material analysis and characterization. This can be efficiently done by setting up sophisticated analytical equipment. Once the materials are identified and the proof of concept is established, the computational modeling, simulations, and digital twins would act as a feedback loop to improve the design and converge to manufacturability. The validation and process control shall play the x-factor as the production lines are optimized to fit the scale-up efforts.

2025 will be a defining year as India intensifies its efforts to create a self-sufficient raw material ecosystem for MedTech. This includes expanding research in advanced wound care materials, developing implantable devices, and scaling up innovative production techniques like additive manufacturing. These initiatives are poised to make India a leader in the medical materials sector, significantly reducing the current USD 2.5 billion spent on medical device imports and bolstering the nation’s capacity for high-quality healthcare delivery.

With strategic investments, people’s participation, government backing, and industry collaboration, India’s MedTech landscape is on a trajectory to achieve greater autonomy and innovation, leading to a more resilient and globally competitive healthcare sector in the coming years.