Making MedTech affordable–India navigates to heal in India

As industry pundits predict a growth surge in the next two years for India’s MedTech and healthcare sectors, driven by the global boom in robotics and AI applications, it is imperative to ensure that these technological advancements remain affordable for the masses. This is particularly crucial for the world’s most populous nation as we strive toward self-sufficiency in technology and manufacturing.

While the potential for growth in this sector is immense, the reality remains that India’s medical technology landscape is still significantly underdeveloped, dominated mainly by trading firms and syndicates that exploit the scarcity of locally manufactured devices to dictate pricing. This lack of progress results in inflated costs, with the burden ultimately falling on patients.

Telemedicine and the introduction of wearable health technologies such as smartwatches, fitness trackers, glucose meters, etc., are game-changers for modern healthcare. Imagine having access to a doctor for consultation without leaving your home. This is the power of telemedicine, which boomed more than ever during the pandemic. This format cuts down travel time and is very convenient for the patients. Furthermore, wearable devices maintain constant health monitoring, catching issues early and managing chronic conditions in real time. There is a lot of scope to explore technology and convenience in this space.

The Make in India mission is pivotal in addressing this gap by fostering home-grown technological advancements through increased investments in research and development (R&D). Additionally, there is a strong case for encouraging reverse engineering of globally accepted medical technologies, ensuring that cost-effective alternatives are available in the Indian market. By creating an ecosystem that supports indigenous manufacturing, we can significantly reduce dependence on expensive imports and offer quality healthcare solutions at a more reasonable price point. Such a shift will contribute more effectively to the population’s well-being than merely focusing on economic growth and financial empowerment.

Moreover, the state must take strategic measures to control medical expenses by implementing tax relaxations on medical equipment, consumables, and pharmaceuticals. The current reliance on imports from regions such as China, Japan, and South Korea, combined with hefty import duties and other taxes, further escalates the cost of medical care. Reducing these levies can substantially lower treatment expenses, making quality healthcare accessible to a broader population segment.

In parallel, healthcare institutions have long urged the government to revise the tariffs under government-run schemes such as the Central Government Health Scheme (CGHS), Employees’ State Insurance (ESI), and the Chief Minister’s Comprehensive Health Insurance Scheme (CMCHIS). Currently, the reimbursement rates under these schemes do not align with the actual costs incurred by hospitals to maintain international standards of care. Addressing this disparity is crucial to ensuring that hospitals can sustain high-quality services without financial strain or passing the costs onto patients.

Beyond affordability, there is also a pressing need to address regulatory challenges that hinder the growth of the medical technology industry in India. A more streamlined and supportive policy framework and incentives for start-ups and manufacturers can accelerate the development of advanced medical technologies within the country. Additionally, increased collaboration between the government, private sector, and academic institutions can drive innovation and enhance skill development in MedTech, ultimately reducing dependence on foreign technology.

Public-private partnerships (PPPs) could also play a transformative role in bridging the affordability gap. Encouraging such collaborations can lead to the establishment of state-of-the-art manufacturing hubs, specialized research centres, and large-scale production units that can cater to both domestic and international demand. This will boost India’s healthcare sector and position the country as a global leader in medical technology exports.

Ultimately, if India is to truly realize the vision of ‘Heal in India’ and become a global healthcare hub, it must take decisive steps toward ensuring affordability, accessibility, and innovation in medical technology. By addressing the structural deficiencies in the industry, revising taxation policies, and strengthening government healthcare schemes, we can move closer to a future where quality healthcare is a right and not a privilege. The dream of a self-sustaining healthcare ecosystem is within reach, provided policymakers, industry leaders, and healthcare professionals work collaboratively toward this shared goal.

The author is COO, SRM Global Hospitals, Chennai.