Shishir Agarwal, President and Managing Director, Terumo India & Secretary, NATHEALTH stresses that with initiatives like the Promotion of Research and Innovation in Pharmaceuticals and Medical Devices (PRIP), India’s medtech sector is poised for continued growth and innovation
The COVID-19 pandemic has propelled the medtech sector into the forefront of healthcare delivery. Technologies like machine learning, artificial intelligence, and advanced imaging are being integrated to improve healthcare quality, efficiency, and cost-effectiveness. As various scientific and technological breakthroughs converge, the rate of medical innovation is quickening. This acceleration translates into accurate diagnosis, targeted treatment, enhanced outcomes, less invasive procedures, and shorter recovery times, ultimately elevating overall health. The evolution of technology has notably transformed the treatment and prevention of diseases, exemplified by the significant advancements in addressing heart diseases and their consequences, such as heart attacks.
Growing market
The medtech sector also contributes significantly to the economy by creating jobs, fostering entrepreneurship, and attracting investments. With a current market valuation of $11 billion, India’s medical devices sector is projected to reach $50 billion by 2030. Positioned in a growth stage, the sector has exhibited a commendable CAGR of 10-12 per cent over the past decade. Factors driving this growth include population growth, increased life expectancy, rising prevalence of chronic diseases, improved health awareness, and government initiatives to boost healthcare spending and insurance penetration.
Recent data reveals a significant 41 per cent surge in medical device imports in India, reaching over Rs 63,000 crores in FY 2021-22 compared to Rs 44,708 crores in the previous year. Despite this, India is making strides in the field of medical technology signalling a shift towards self-sufficiency. The Government of India is adopting several policies to ensure the growth of a vibrant ecosystem of medical device manufacturing in India. These include Production Linked Incentives, the Development of Medical Device Parks, and release of first National Medical Devices Policy, the National Policy on R&D and Innovation in the Pharma- Pharma-medtech sector in India and the Scheme for the Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) to boost research and innovation.
The Indian medical device industry has experienced substantial growth, supported by both the central and state governments. Notably, India is becoming a hub of innovative medical technologies with global implications. Emerging advancements in the country include robotic surgery, the integration of artificial intelligence in healthcare, the widespread adoption of telemedicine, advancement in 3D printing, and the development of ground-breaking wound care devices. These developments underscore India’s commitment to contributing significant innovations to the global landscape of medical technology.
Need for R&D
To fully realise its potential in the global medtech landscape, India must invest more in research and development. The COVID-19 pandemic highlighted the need for innovation in delivering efficient and accessible healthcare solutions. Progress in biotechnology, digital technologies, AI, and regenerative science offers new avenues for healthcare innovation, spanning diagnostics, therapies, monitoring devices, and more. India’s focus on R&D is crucial for developing cutting-edge medical technologies that can address both existing and emerging health challenges.
Challenges & solutions
Despite its growth potential, the Indian medtech sector faces challenges such as ease of doing business, limited technological capabilities, and low levels of R&D investment. One notable concern is the low level of research and development investment in both pharma and medtech domains. Compared to the substantial R&D spending in the United States and China which range from $50-60 billion to $12-20 billion respectively, India’s investment stands at a modest $3 billion. Addressing these challenges is crucial to unlocking the full potential of the Indian medtech sector and fostering greater innovation and self-sufficiency.
The government’s National Policy of R&D and Innovation in Pharma-MedTech aims to address these challenges by fostering an innovation-driven ecosystem and promoting collaboration between public and private sectors. Simplified regulatory frameworks and increased investment are essential for unlocking the sector’s full potential and driving greater innovation and self-sufficiency.
In order to facilitate growth in medtech sector, India also needs to focus on various key parameters like improving Ease of Doing Business and establishing a predictable policy regime with simplified regulatory structure and establishing a robust supplier ecosystem and medical reimbursement schemes.
Bright future
With initiatives like the Promotion of Research and Innovation in Pharmaceuticals and Medical Devices (PRIP), India’s medtech sector is poised for continued growth and innovation. By establishing predictable regulatory environments, harmonising quality standards, and promoting innovation in areas like genomic medicine and AI, India can further enhance its global impact in healthcare.
The medtech sector has the potential to transform healthcare accessibility, delivery, and affordability, ultimately leading to a healthier and more accessible India for all.