How the Indian industry will pan out over the next couple of years

With an increasing focus on innovation, accessibility, and quality healthcare, the MedTech and in-vitro diagnostics (IVD) sector in India is poised for exponential growth, this industry in India is at a transformative juncture. In the coming years, a combination of government policy, regulatory changes, increased investment, and a surge in medical tourism will be the primary drivers of this growth.

Through a number of initiatives, the Indian government has shown a strong commitment to revolutionizing the IVD and MedTech industries. The Make in India and Atmanirbhar Bharat initiatives seek to increase domestic production and decrease dependency on imports, which now supply more than 80 percent of India’s IVD and MedTech needs. The National Medical Devices Policy, 2023, approved by the union cabinet, further underpins this growth strategy. The policy aims to catapult the sector from its current market size of USD 11 billion to USD 50 billion by 2028.

Key provisions of this policy include
Production-linked incentive (PLI) scheme. PLI scheme has been a game-changer for the MedTech industry. It incentivizes companies to set up manufacturing facilities in our country, focusing on high-end medical devices, such as MRI machines, CT scanners, and x-ray tubes. With many of the projects already approved and several more in the pipeline, this scheme is expected to significantly boost domestic production and reduce dependence on imports.

Medical devices parks. The government has also sanctioned the development of four medical devices parks in states like Himachal Pradesh, Madhya Pradesh, Tamil Nadu, and Uttar Pradesh. These parks will provide state-of-the-art infrastructure, reducing production costs by optimizing resources and creating a favorable ecosystem for MedTech companies.

Streamlined regulatory framework. The Medical Devices Rules 2017 and subsequent amendments have established a more transparent and efficient regulatory pathway for new devices. The Central Drugs Standard Control Organization (CDSCO) is now central to ensuring that all medical devices meet stringent quality and safety standards. However, as regulatory landscapes continuously evolve, manufacturers must stay agile to remain compliant.

Investment and economic impact – A booming sector. The MedTech and IVD sector in India has become a magnet for investment. This is driven by supportive government policies, a burgeoning healthcare infrastructure, and an increasing demand for advanced medical devices. Recent policies encourage private investments, venture capital funding, and public-private partnerships (PPPs). This influx of capital is essential for scaling up R&D, fostering innovation, and expanding manufacturing capacities within the country.

At Sahyadri Hospitals, we are exploring partnerships with MedTech companies to integrate the latest technologies into our care pathways. Investments in advanced diagnostic and therapeutic equipment not only improves patient outcomes but also aligns with our mission to provide world-class healthcare at affordable costs. Collaborating with both global and domestic MedTech firms, we are looking to develop joint research initiatives that can further the scope of healthcare innovations in India. Recently, we introduced Asia’s first TomoTherapy Radixact X9 system, integrated with the advanced VitalHold technology. This revolutionary and the latest advancement in radiation therapy, offers unparalleled precision and improved patient outcomes, particularly for cancers where motion management is critical.

Standards, quality control, and human resources development
For the MedTech sector, maintaining the highest standards of quality and safety is crucial. In this sense, the CDSCO’s function is vital because it guarantees that devices adhere to international standards. Professional skill development, reskilling, and upskilling are also prioritized in the industry. The Ministry of Skill Development and Entrepreneurship and the government have teamed up to pool resources in order to produce MedTech professionals who are prepared for the future.

For Sahyadri Hospitals, the availability of skilled manpower is a critical component. We are actively engaging in training and development programs in collaboration with our senior doctors and academic institutions to ensure our staff is well-versed in using cutting-edge technologies. This focus on continuous learning helps us maintain high standards of care and leverage the latest innovations for better patient outcomes.

Addressing challenges – Imports and self-reliance
While government policies aim to boost local manufacturing, India continues to rely heavily on imports for high-end medical devices. This reliance poses risks, such as supply chain disruptions and increased costs. However, the recent regulatory reforms and incentives for domestic manufacturing are steps in the right direction to address these challenges. The PLI scheme is particularly focused on reducing this dependence by encouraging the local production of high-value products.

The future of the MedTech and IVD industry in India is promising. With robust government policies, strategic investments, and a focus on innovation, the sector is on a trajectory of growth that will redefine healthcare delivery in India. As we move forward, adapting to evolving regulations, and focusing on patient-centric care will be the keys to success. The sector’s growth is not just a win for the industry but also a significant leap toward achieving universal healthcare access and affordability for every Indian.