India 4th largest MedTech market in Asia; to hit USD 50B
India is rapidly emerging as a global hub for medical technology, ranking as the 4th largest MedTech market in Asia and among the top 20 globally. The sector is projected to reach USD 50 billion by 2025, driven by an increasing demand for healthcare services, a growing elderly population, and the rise of non-communicable diseases. As one of the fastest-growing sectors, India’s MedTech industry holds immense potential to revolutionize healthcare delivery and outcomes.
Over the past decade, significant strides have been made in the MedTech sector. The establishment of medical device parks and the implementation of Production Linked Incentive (PLI) schemes have fostered growth and innovation. The creation of centralized testing and validation centers has greatly enhanced our capability to ensure product quality and safety. Additionally, the vibrant startup ecosystem, with over 4,000 startups, and initiatives like the Atal Innovation Mission (AIM) have been pivotal in nurturing innovation and addressing local healthcare challenges.
The government has been proactive in staffing regulatory and administrative agencies with qualified professionals, ensuring that the unique needs of the MedTech industry are addressed. Various task forces and committees now include members from key associations representing electronics, diagnostics, devices, and consumables, ensuring diverse industry perspectives are considered. The GeM portal for procurement has streamlined the process, allowing for more efficient and transparent government spending on medical technology. This platform has facilitated better access to medical devices for public healthcare facilities.
The “Make in India” initiative has significantly boosted local manufacturing and foreign investments, fostering innovation and job creation within the country. Designated hubs under this initiative have enhanced the capability of manufacturing clusters, improving logistic services, ensuring quality power and water supply, and setting up training institutes. These hubs also include centralized testing, sterilization, and validation centers, further supporting the industry in meeting quality standards.
The proposed New Drugs, Medical Devices, and Cosmetics Bill 2023 is a comprehensive reform aimed at streamlining regulatory processes and enhancing the safety and efficacy of medical devices. This bill will facilitate a more robust regulatory environment, fostering innovation while ensuring patient safety. Various tax incentives and financing schemes have been launched to promote local manufacturing, though issues like inverted duty structures need addressing to enhance industry growth.
Regulatory hurdles, investments in R&D, competition, and quality control are key issues that need to be resolved collaboratively. Enhancing regulatory frameworks and increasing R&D investments are essential for sustaining growth and innovation in the sector. Collaborations between industry and academia are crucial for driving innovation. The establishment of incubation centers in collaboration with global institutes will be instrumental in developing cutting-edge medical technologies. Promoting career opportunities in the MedTech industry and liaising with academia to tailor courses that meet the sector’s needs are essential for building a skilled workforce.
The future of the Indian MedTech sector lies in its ability to innovate, adapt, and collaborate. Embracing digital transformation, fostering a conducive regulatory environment, and investing in skill development will be key drivers of growth. As the sector continues to evolve, it holds the promise of not only improving healthcare outcomes but also contributing significantly to the economy. CII Blog
