MedTech Moment: Investment, Aatmanirbhar Bharat to Efforts, India’s Time to Shine in Global Industry

India is currently at an inflection point. It stands on the cusp of becoming a major medical technology supplier internationally. With the recent launch of the National Medical Policy, 2023, the government envisages emerging as an upcoming global leader in the manufacturing and innovation of medical devices. The goal is to achieve a 10-12% share in the expanding global market over the next 25 years.

India has what it takes – a fast-growing economy, strong domestic demand, software expertise, innovation and of course, the backing of a government-programme – Make in India.

In 2014, the Modi government had recognised the medtech sector as a sunrise sector under the Make in India initiative. Tied along with the Aatmanirbhar Bharat, India aims to attain self-sufficiency and also become a major player in the global healthcare industry.

NUMBERSPEAK: medtech industry

• The size of India’s medical devices market currently stands at $11 billion. This figure is expected to rise to $50 billion in the coming years.
• With the National Medical Policy and the National Medical Device Policy, India plans to capture 10-12% of the global MedTech market.
• Over the past five years (2015-2020), India’s medtech sector received investments worth $600 million, with major commitments coming from Singapore, United States, Japan and Europe.
• During the height of the Covid-19 pandemic in 2020, foreign investment in the sector shot up by 98% year-on-year. This was double the investment the sector received in 2019.
• India is eyeing 200 joint ventures with foreign investors for nearly $2 billion and above; as well as with 50 multinational companies for the same amount.
• India is also interested in nearly 1,200 collaborations with investors worth nearly $5.7 billion.
• FDI up to 100% under the automatic route is permitted for the manufacturing of medical devices in India.
• The Modi government has also created a specific production-linked incentive (PLI) scheme for medtech products. This PLI has a total financial outlay of Rs 3,420 crore for four target segments of medical devices.

INDIGENOUS MEDTECH

Events like the MedTech Expo which recently concluded in Gandhinagar, have helped showcase indigenous technologies on the global stage.

Speaking at the event, Union Health Minister Mansukh Mandaviya had said, “Our goal is to become self-reliant in the medical device sector and reduce our import dependency which also perfectly aligns with our vision of ‘Aatmanirbhar Bharat’, and ‘Make in India, Make for the World’.”

INNOVATION HUB

India has what it takes to become a global supplier of medtech devices. It has at least 4000 health-tech startups operating in the country.

India’s strength in information technology has seamlessly merged with its healthcare ambitions. This has resulted in a slew of innovations that leverage AI, machine learning, and data analytics to address healthcare challenges. India has also developed expertise in 3D printing, smart sensors, robotics and in making hi-tech contactless health devices.

The biotech sector is burgeoning, with significant advancements in areas such as stem cell research, genomics, and personalised medicine.

One of the hallmarks of India’s medical innovations have been the focus on affordability. Indian medical solutions are meant to be accessible to the masses. A prime example is the development of the world’s cheapest cardiac stent.

SUCCESSES

A multi-institutional team led by researchers from IIT Bhilai has successfully engineered a novel Insulin-delivery platform. This hydrogel-based drug delivery system has the ability to mimick natural insulin secretion of healthy pancreatic cells.

It was the Covid-19 pandemic that really brought out innovation in the Indian medtech sector. A company called MEDTECH LIFE Pvt Ltd., for example, created something called an oxygen concentrator. It’s made entirely in India, and became an instant hit during the height of the pandemic.

The same company has been manufacturing nebulizers since 2000, selling over 1 million pieces in India every year alone and exporting to 70 different countries.

Portable ventilators offer another example of how India innovated during the pandemic. Ventilators were previously known to cost a lot. However, during Covid times, the cost of portable ventilators came down to anywhere between Rs 25,000-30,000. IIT-Roorke and AIIMS pioneered such innovation, while other companies played an active role in making ventilators affordable and well as simpler-to-use.

Companies like Terumo Penpol have been pioneers in the field of pioneer in the field of blood banking and transfusions, exporting to 80 countries worldwide.

The government is determined to make India a global manufacturing hub for medtech devices. However, India’s road to becoming a major global medtech player faces challenges such as a shortage of skilled workers. But given the kind of impetus it is receiving from the Modi government, it will soon make its mark on the global stage.