India’s healthcare industry is poised for dramatic growth, with forecasts suggesting a potential tenfold increase from $2.7 billion in 2022 to around $37 billion by 2030, according to a report by Boston Consulting Group (BCG).
However, the sector faces significant challenges due to its heavy reliance on imported medical devices, which account for more than 80% of its needs. This dependency brings vulnerabilities in supply chains and price fluctuations. The introduction of the National Medical Devices Policy 2023 marks a crucial step towards reducing this reliance.
The policy aims to stimulate domestic manufacturing through incentives such as tax breaks and subsidies, fostering an environment conducive to local production of medical devices. Complementary initiatives like the National Mission for a Healthy India, ‘Make in India,’ and ‘Startup India’ are further driving growth in the sector. Notably, the Indian medical technology sector attracted substantial venture capital funding of US$1.5 billion in 2021 alone, underscoring growing investor confidence.
India is on the brink of a transformative phase in medical technology, driven by a convergence of dynamic factors that position the country for self-sufficiency and global leadership in this critical sector. Central to this innovation wave is India’s pool of highly skilled engineers and scientists, whose expertise and dedication are fueling the development of advanced solutions to address complex healthcare challenges. Supported by a robust academic foundation, where institutions foster a culture of research and development, India provides fertile ground for budding innovators to explore new ideas.
The expanding middle class in India, with its rising disposable income and increasing awareness of healthcare standards, is a pivotal force driving indigenous innovation. As reported by FICCI, this demographic’s demand for high-quality healthcare products and services is spurring innovators and entrepreneurs to develop solutions that not only meet but surpass international benchmarks, reshaping the landscape of medical technology within the country. Further bolstering this innovation ecosystem is India’s thriving entrepreneurial spirit, supported by initiatives like the Startup India program.