India’s medtech sector is on the brink of a transformative phase, with strong growth potential as it aligns with global standards in a $500-$600 billion industry. The domestic market, currently valued at $15 billion, remains underdeveloped but offers immense opportunities for expansion. Strategic measures and policy reforms are expected to propel growth and innovation within the sector.
Regulatory and Policy Reforms:
The long-anticipated Medical Devices Bill (2023) will play a critical role in improving the regulatory framework for medical devices by categorizing them separately and enhancing governance. The government’s Production-Linked Incentive (PLI) scheme, while promising, needs broader product coverage and extended timelines to fully realize its potential. Expanding the range of products eligible for incentives would ensure better utilization of available funds and greater industry participation.
Boosting Domestic Supply Chains:
To reduce import dependence and enhance resilience, a greater emphasis on developing domestic suppliers of high-quality raw materials is necessary. This will foster self-sufficiency and support the sector’s long-term growth.
Cross-Industry Synergies:
Collaborations with India’s growing electronics and semiconductor sectors are driving innovation and strengthening the supply chain. The shift from “Make in India” to “Innovate, Design, and Make in India” is advancing India’s capabilities in producing not only consumables but also sophisticated medical devices.
Healthcare Spending and Export Growth:
Despite rising medical inflation, healthcare spending has stagnated over the past five years. Increasing expenditure to 3% of GDP is essential to address sector challenges and support the medtech industry. Additionally, boosting export incentives from 0.6-0.9% to 2-2.5% will encourage Indian manufacturers to tap into developed markets. Refund schemes like RoDTEP can alleviate high costs associated with clinical trials and international regulatory approvals.
Tax Reforms for Simplified Compliance:
A unified GST rate of 12% would streamline compliance, reduce complexity, and improve operational efficiency for medtech companies.
Looking ahead, these reforms and innovations signal a promising future for India’s medtech industry, positioning it as a global player and driving advancements that benefit healthcare access and affordability.
Written & credits : Himanshu Baid, Managing Director, Poly Medicure Ltd. in Thehindubusinessline