Future of MedTech and IVD in India

As the healthcare landscape evolves, driven by technological advancements, government policies, and increasing healthcare demand, the MedTech and in-vitro diagnostics are the most essential part of modern medicine – they provide information that is key for the prevention, treatment, and management of disease. Therefore, the (IVD) industry is expected to play a pivotal role in shaping the future of medical care in the country.

The Indian government has recognized the MedTech sector’s potential and implemented supportive policies, notably the Medical Devices Rules, 2017 , which streamlined regulations and ensured quality and safety. Establishing a separate regulatory framework for medical devices, distinct from pharmaceuticals, fostered innovation and attracted investment. The draft Medical Devices (Amendment) Rules, 2020, and the proposed Medical Devices Bill (2022) aim to further enhance the regulatory landscape. These initiatives are expected to bring clarity, consistency, and predictability, driving growth in the medical devices and diagnostics sector.

High imports and the push for self-reliance
India imports over 70 percent of its medical devices, underscoring the need for a strong domestic manufacturing base. The Atmanirbhar Bharat initiative and the production-linked incentive (PLI) scheme aim to reduce this import dependency by encouraging indigenous manufacturing. By offering financial incentives, the PLI scheme should attract significant investments, positioning India as a global hub for medical devices production and enhancing self-reliance.

Investment and innovation in the sector
The MedTech and IVD industry in India is attracting substantial investments, both from domestic and international players. The sector’s potential for innovation, coupled with a growing demand for advanced medical technologies, has made it an attractive investment destination. The rise of start-ups and the increasing focus on research and development (R&D) are driving innovation in areas such as digital health, telemedicine, and point-of-care diagnostics.

Many multinational corporations are adding to their current R&D centers, and many are setting up R&D centers in India, leveraging the country’s skilled workforce and cost advantages.

Government spending and healthcare infrastructure
India’s healthcare infrastructure is undergoing a significant transformation, driven by government focus and the expansion of healthcare services. The National Health Policy, 2017, and the Ayushman Bharat scheme have laid the foundation for universal healthcare coverage, which is expected to increase the demand for medical devices and diagnostics. However, appropriate reimbursement is essential to ensure quality and sustainability of services provided.

The government’s focus on strengthening the healthcare infrastructure, especially in Tier-II and Tier-III cities and rural areas, presents a significant opportunity for the industry. The expansion of healthcare facilities in these regions will drive the demand for affordable and accessible medical technologies, further boosting the sector’s growth.

Medical tourism and global standards
India is emerging as a leading destination for medical tourism, attracting patients from across the globe seeking high-quality healthcare at lower costs than in the West. The MedTech and IVD industry plays a crucial role in supporting medical tourism by providing advanced diagnostic and treatment solutions. However, to sustain and grow its medical tourism sector, India must ensure compliance with international quality standards such as ISO, FDA, and CE certifications. This focus on quality and standards will also open up export opportunities for Indian MedTech companies, allowing them to tap into global markets.

The role of technology in shaping the future
Digital health solutions, artificial intelligence (AI), and machine learning (ML) are driving innovations in diagnostics and treatment. AI-powered diagnostics, for instance, are enabling faster and more accurate diagnosis, improving patient outcomes. The adoption of telemedicine and remote monitoring technologies, accelerated by the Covid-19 pandemic, is also transforming healthcare delivery. These technologies are particularly beneficial in a country like India, where access to healthcare services is often limited in remote and rural areas.

Final say
The convergence of government policy, technological innovation, strategic investments, and a strong push for self-reliance is fostering an environment for the MedTech industry’s expansion in India. This synergy not only enhances healthcare outcomes by making advanced diagnostics and treatments more accessible but also positions India as a competitive global leader in medical technology and diagnostics. As the industry continues to evolve, it will play a critical role in improving public health while also driving economic growth by attracting global investments, encouraging domestic innovation, and reducing dependency on imports. This multifaceted growth is expected to make India a pivotal player in the global MedTech landscape.