Indian MedTech can dominate the world
This article is authored by Jatin Mahajan, secretary, Association of Diagnostics Manufacturers of India (ADMI).
India is considered the global hub for frugal medical technology (MedTech) innovation and has already become a major force to reckon with in the global MedTech arena. Valued at approximately $12 billion in financial year 2023-24, Indian MedTech has grown rapidly at a compound annual growth rate (CAGR) of over 20% during this decade and is projected to surpass $50 billion by 2030.
The Indian medical device imports majorly account for these five segments - electronic equipment (56% share), disposables and consumables (26.5%), in-vitro diagnostics (8.1%), implants (7.1%), and surgical instruments (2.3%). While we majorly lag in the electronic equipment segment (comprises advanced diagnostic and imaging equipment like MRI machines, CT scanners, ultrasound devices etc), this breakup demonstrates that we have a long way to go in the other segments as well. While the imports in 2023-24 were roughly $8 billion, the exports stood at close to $4 billion. We are still importing nearly 70% of our medical equipment, and almost 80% of this ($8.2 billion) import is from the United States. There is, thus, a major trade deficit in the medical devices sector.
India has tremendous growth potential in the health care segment, which will be primarily driven by factors such as – rising income levels leading to higher spending on health care and preventive health care, more and more people being covered under the ambit of health care insurance schemes like PM Jan Aarogya Yojana, growth in medical tourism leading to better health care facilities and services, higher penetration of quality health care in tier 2 and 3 cities and the proliferation of digital health platform and technology-based health care deliveries.
Significant government initiatives and policies have also played a key role and catalysed the sector's growth. These include regulatory reforms like the Medical Device Rules 2017 and the National Media Device Policy 2023, which have streamlined the industry; the promotion of medical device parks across the country have provided availability of shared state-of-the-art infrastructure; initiatives like MedTech Mitra and PRIP drive innovation and product development.
The growth story does not finish here. There is always scope for further strengthening the growth environment and making it more conducive to the proliferation of newer and cost-effective innovations that will be utilised within the country and provide a fillip to export efforts.
Indian MedTech @ 100 aims to shift from a primarily import-dependent to an export-led industry by 2047. As a country, we must embrace and strengthen various initiatives to catapult the Indian MedTech industry globally. India must incorporate a judicious mix of short-term actionable strategies and long-term, transformational approaches.
Some short-term strategies are as follows:-
- Strengthening quality and regulatory compliance and aligning and harmonising Indian standards with global standards like USFDA, EU MDR/IVDR, CE, UKCA and ISO. We must also ensure faster regulatory clearances and deploy a single-window mechanism to reduce the time to market for exports.
- Driving export opportunities by negotiating favourable free trade agreements (FTA) and leveraging existing agreements with trade blocks like ASEAN, EU, and Africa
- Market development and brand-building campaigns to position India as an affordable and high-quality global MedTech manufacturing hub.
- Focus on scaling up the production of high-demand solutions like consumables, diagnostic reagents, surgical instruments, implants, diagnostic equipment, PPE, and digital health devices.
Some long-term strategies are as follows:-
- Invest in research and development and innovation by setting up MedTech research parks to develop products tailored to global needs.
- Building manufacturing infrastructure through dedicated MedTech parks with world-class facilities for production and testing
- Skilling the workforce by introducing specialised training programmes jointly with the academia to create a pool of competent technicians, engineers, and researchers. Additionally, upskill existing talent on aspects like regulatory norms, international trade practises, and advanced manufacturing techniques.
- Develop a comprehensive MedTech Export Policy that identifies focus markets export barriers and addresses these by setting clear growth targets
- Strengthening India’s digital health ecosystem to emerge as the leader in telemedicine, electronic health records, and health IT exports.
- We should also explore and drive Government to Government (G2G) collaborations for mutually beneficial tech transfers, just like we have done in the Defence sector.
The top ten countries importing Indian MedTech products are – the US, Germany, China, Netherlands, Japan, United Kingdom, France, Belgium, Italy & Mexico. Indian MedTech exporters must continue focusing on these markets wherein Indian products’ credibility, quality, and cost-effectiveness are well established. In addition, the industry must be focused on these ten countries: Brazil, Thailand, South Korea, Indonesia, Nigeria, Vietnam, Columbia, Saudi Arabia, South Africa, and Turkey. These emerging markets with growing health care demands will be crucial for helping Indian companies establish a global footprint and drive exports.
Indian MedTech has the potential to impact global health care. To become the global leader in the medical technology industry, we need to drive strategic investments, create supportive policies, and focus on innovation.
This article is authored by Jatin Mahajan, secretary, Association of Diagnostics Manufacturers of India (ADMI).
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