Indian MedTech market projected to hit Rs 410,000 crore by 2030
The Indian MedTech industry holds the distinction of being the fourth-largest medical devices market in Asia, trailing behind Japan, China, and South Korea. This sector exhibits a significant presence of multinational corporations, with around 75-80% of sales dominated by imported medical devices, underscoring a reliance on foreign products. Despite this,India boasts a considerable number of domestic medical device manufacturers, numbering between 750-800.
The Indian medical devices sector has showcased remarkable resilience, particularly during the Covid-19 pandemic, by spearheading the production of critical healthcare products such as diagnostic kits, Rapid Antigen Test kits, RT-PCR kits, IR thermometers, PPE kits, and N-95 masks. This proactive response has not only strengthened the nation’s healthcare infrastructure but also contributed to global pandemic mitigation efforts.
The focus of this newsletter is to delve more into the Indian MedTech Industry and how 1Lattice can provide better insights and support to MedTech companies with key market trends, propelling factors, government policies, and their impact on the industry.
In2023, the Indian MedTech market exhibited robust growth, reaching a market value of INR 106.6K Cr, with projections indicating a substantial leapto INR 410K Cr by 2030, reflecting an impressive CAGR of 21%. Driving this expansion are supportive government policies,regulations, and schemes facilitating 100% Foreign Direct Investment (FDI)in the sector.
Furthermore, the Indian MedTech export market, valued at INR 20.5K Cr in 2023, is poised for exponential growth, projected to soar to INR 82K Cr by 2025, driven by an exceptional CAGR of 97.6%. The expansion of MedTech exports remains buoyed by government initiatives, including efforts toward universal health insurance coverage, the ‘Make in India’ campaign, and the strategic growth plans of private healthcare enterprises. These concerted efforts underscore India’s trajectory towards becoming a global hub for medical technology innovation and export.
Equipment and instrument shave the largest share in the Indian medical devices market contributing54% of the market in FY23. The other significant categories include consumables and disposables, implants, and patient aids. The supply of skilled labor, government initiatives such as “Atmanirbhar Bharat” aimed at enhancing access to healthcare and encouraging local production, and rising demand brought about by these factors are the main drivers of this industry’s growth.
The growth of the MedTech industry in India is propelled by several key factors. Firstly,supportive government policies, regulations, and schemes, including 100% Foreign Direct Investment (FDI) and initiatives like the Make in India campaign, foster a conducive environment for investment and innovation. Secondly, the increasing demand for healthcare services, driven by a growing population and rising awareness of healthcare needs, creates a robust market for medical devices and technologies. Additionally,advancements in technology, such as 3D printing and telemedicine, enhance production capabilities and expand access to healthcare in remote areas.
Overall, these factors collectively contribute to the dynamic growth and development of the MedTech industry in India.
The MedTech market in India is witnessing a transformative wave fueled by several key industry trends.Big data analytics is revolutionizing healthcare by providing insights into patient outcomes, treatment effectiveness, and operational efficiencies. Start-upsare injecting innovation into the sector, leveraging technologies like artificial intelligence and machine learning to develop cutting-edge solutions.Robotic surgeries are gaining traction, offering precision and minimally invasive procedures.Telemedicineis bridging the gap between patients and healthcare providers, especially in remote areas.
Wearable devices are empowering individuals to track their health in real-time, promoting preventive care and early intervention. Additionally, the shift towards home healthcare is driven by the growing aging population and the desire for more personalized and convenient healthcare services.
These trends collectively signify a dynamic landscape, poised for further growth and advancement in the Indian MedTech industry.
The Government of India has launched several initiatives to enhance domestic manufacturing and promote the overall growth of the MedTech industry in India. The National Medical Devices Policy 2023aims to support the industry’s growth to reachUS$ 50B by 2030, through measures such as building enabling infrastructure, facilitating R&D and innovation, attracting investments, regulatory streamlining, human resource development, and brand positioning.
Additionally, the government has established a National Single Window System to simplify the import process for medical devices and implemented production-linked incentive schemes and investments for medical drug parks to boost domestic manufacturing. These initiatives demonstrate the government’s commitment to transforming India’s healthcare landscape and making the country self-reliant in the MedTech sector.
The primary governing body overseeing medical devices is the Central Drugs Standard Control Organization (CDSCO)under the Ministry of Health and Family Welfare. In 2017, the government introduced the Medical Device Rules to streamline regulations and establish a clear pathway for the registration and approval of medical devices. These rules categorized devices based on their risk levels, with higher-risk devices subject to more stringent regulatory requirements.
Additionally, the introduction of the Medical Device Amendment Bill in 2020aims to enhance the regulatory framework further by establishing a separate regulatory authority for medical devices and ensuring conformity with international quality standards. Adherence to regulatory guidelines is crucial for manufacturers and distributors to navigate the Indian market effectively and contribute to the growth and development of the MedTech sector while maintaining high standards of safety and efficacy. 1Lattice
