While India’s MedTech startup ecosystem is expanding rapidly, most innovators still focus on easy wins instead of high-risk, high-reward innovation, as per Economic Times. Funding and policy support are increasing, yet many companies chase “low-hanging fruit” rather than disruptive technologies.
Focus on Low-Risk Products Limits Impact
Experts at the Pfizer INDovation Program noted that many Indian MedTech startups concentrate on basic products like low-risk in vitro diagnostic (IVD) kits. These products fall into lower regulatory risk categories (Class A and B), exposing startups to fierce competition from established global players.
Dr. Shailendra Saraf, Director at NIPER-Ahmedabad, explained that although innovation potential exists, few firms venture into transformative or high-tech segments. Instead, most concentrate on incremental improvements that do not unlock significant value.
Challenges in R&D and High-Tech Development
A key barrier to deeper innovation is limited investment in research and development. Government officials at the event highlighted that only a small percentage of pharma and MedTech firms in India engage in real R&D, with the majority focused on manufacturing and production.
Additionally, competition from countries like China makes scaling more advanced technologies difficult. Indian startups often import critical reagents rather than develop indigenous alternatives, reducing their ability to compete on a truly innovative front.
Policy Support and International Lessons
Speakers pointed out that collaborations between universities and industry, like those seen in the UK and Ireland, help strengthen innovation pipelines. In some ecosystems abroad, students are even encouraged to launch startups as part of their PhD requirements — a model that could benefit India if adopted more widely.
Government initiatives such as allocations under the Biopharma SHAKTI scheme aim to support manufacturing, especially for injectable devices, with dedicated funding. However, critics argue that more targeted support for higher-end technologies is still needed.
Import Dependence and Market Opportunity
Indian MedTech companies export mainly low-risk consumables like bandages and gloves, while high-end devices such as surgical robots and advanced scanners are largely imported. As of 2025, imports nearly double exports, underscoring the ecosystem’s reliance on foreign technologies.
Commerce and Industry Minister Piyush Goyal has urged startups to take advantage of recent free trade agreements that offer duty-free access to large global markets. Yet founders often see significant equity dilution by the time their ventures mature, limiting their potential rewards.
Support Programs Aim to Boost Innovation
To address some of these challenges, the Pfizer INDovation Program selected 14 promising startups for targeted support, including funding for clinical validation and intellectual property costs. Some participating innovations — such as an AI-assisted gastric cancer detection tool — have even received fast-track US FDA designations, showing promise beyond India’s borders.