Paving the way for MedTech and IVD – Vision for the future

As the healthcare industry is evolving, the MedTech and in vitro diagnostics (IVD) sectors are set to play significant roles in shaping the future. With the Indian government’s push for self-reliance, advancements in technology, and increasing investment, these sectors are meant for significant growth.

Government policy and regulatory scenario
The Indian government has laid a strong foundation for the MedTech and IVD sectors with progressive policies and regulations. The Medical Devices Rules 2017 have created a streamlined regulatory environment, increasing clarity and predictability for both domestic and international players. This regulatory stability encourages investment and innovation.

The National Health Policy 2017 aims to increase public health expenditure to 2.5 percent of GDP by 2025, from the current 1.15 percent. This ambitious target is expected to drive demand for advanced medical technologies and diagnostic solutions. The recent establishment of the Indian Medical Devices Regulatory Authority (IMDRA) is another significant step, aiming to harmonize regulatory standards with global best practices, ensuring the highest quality of medical devices.

High imports and the push for self-reliance
India currently relies heavily on imports for its medical devices and diagnostic equipment, with around 80 percent of these products being imported. This dependence poses challenges in terms of cost and accessibility. However, the government’s Atmanirbhar Bharat initiative seeks to reduce this dependency by promoting domestic manufacturing.

The production-linked incentive (PLI) scheme for medical devices, launched in 2020, is a cornerstone of this strategy. By offering financial incentives to manufacturers, the scheme aims to boost domestic production of high-tech medical devices. This initiative is expected to make India a global hub for medical devices manufacturing, attracting large investments and encouraging innovation.

Investment trends
Investment in the MedTech and IVD sectors has seen a substantial increase, driven by both public and private sectors. According to Invest India, the medical devices market is expected to grow from USD 11 billion in 2020 to USD 50 billion by 2025, at a compound annual growth rate (CAGR) of 35.4 percent. This growth is driven by increased healthcare spending, rising awareness about advanced diagnostic solutions, and a growing aging population.

Private equity and venture capital firms are also showing a keen interest in these sectors. In 2021, the MedTech and IVD sectors attracted investments worth USD 836 million, highlighting their potential for growth and innovation. These investments are crucial for developing cutting-edge technologies and scaling up production capabilities.

Medical tourism – A growing opportunity
India is emerging as a preferred destination for medical tourism, thanks to its advanced healthcare infrastructure and cost-effective treatment options. High-quality diagnostic services and state-of-the-art medical technologies enhance the overall patient experience, making India an attractive option for international patients.

The medical tourism market in India is expected to reach USD 9 billion by 2026, growing at a CAGR of 21.1 percent. Government initiatives like the e-medical visa have simplified the process for international patients, further boosting the medical tourism industry. The demand for advanced medical technologies and diagnostic services is set to rise as more international patients seek treatment in India.

Standards and quality assurance
Maintaining high standards and ensuring quality assurance are important for the acceptance and growth of MedTech and IVD products. The Bureau of Indian Standards (BIS) and the National Accreditation Board for Testing and Calibration Laboratories (NABL) play a significant role in this regard. Adhering to international standards boosts the credibility of Indian products, making them more acceptable in global markets. The creation of the Indian Medical Devices Regulatory Authority (IMDRA) highlights the government’s commitment to quality assurance. This regulatory body aims to align Indian standards with global best practices, ensuring that medical devices made in India meet the highest quality benchmarks. By focusing on quality, the IMDRA will build trust among healthcare providers and patients, encouraging the use of India- made medical devices and diagnostic equipment.

Technological advancements
Technological advancements are revolutionizing the MedTech and IVD sectors. Artificial intelligence (AI) and machine learning (ML) are transforming diagnostics by enabling faster and more accurate interpretation of medical data. These technologies can analyze vast amounts of data, identify patterns, and make precise diagnoses, leading to better patient outcomes.

Remote monitoring and wearable devices are also making significant advancements. These technologies empower individuals to proactively monitor their health and enable healthcare providers to track patients’ vital signs remotely. The integration of these technologies into mainstream healthcare will improve disease management and improve overall wellness.

The future of the MedTech and IVD industries in India is bright, driven by supportive government policies, increasing investment, and technological advancements. The focus on self-reliance, quality standards, and the burgeoning medical tourism market further enhance the prospects. By leveraging these opportunities, India can emerge as a global leader in medical technology and diagnostics, providing cutting-edge solutions that enhance healthcare outcomes and contribute to global health advancements. The journey ahead is promising, and with continued focus and effort, the MedTech and IVD industries will play a significant role in the Indian healthcare landscape.