Revolutionising healthcare: The rise of medical device start-ups in India

The USD 50 billion target for the medical devices market size by FY31 is achievable if fundamental challenges and bottlenecks are addressed. Currently, India’s medical devices market is highly import-dependent, with imports comprising 70 per cent of the overall market. Even among domestically manufactured devices, the level of local value addition varies widely, from high in IVD reagents to low in medical equipment. Achieving the USD 50 billion target by FY31 will require a significant reduction in import dependency and a substantial increase in local value addition for domestically manufactured products. The Indian medical devices sector has witnessed remarkable growth in recent years, driven by increasing demand for quality healthcare, advancements in technology, and favorable government policies. Start-ups in this sector have been instrumental in fostering innovation, improving accessibility, and reducing costs.

Factors driving this growth include rising healthcare expenditure, increasing awareness of quality healthcare, and growing demand for medical devices. The Indian government has introduced several initiatives to bolster the medical devices sector. These include fostering a robust manufacturing ecosystem with targeted localisation for key components and attracting global component players to India. It also emphasises globally harmonised quality standards, supports clinical trials in India, and strengthens post-marketing surveillance (PMS). Collaborative partnerships with leading institutes, fast-tracked implementation by NIMER, and innovative programs like PRIP and bridge courses for skill development are also being prioritised. Additionally, the government is addressing issues in PPO norms, enhancing healthcare infrastructure, expanding PPP models in diagnostics, and supporting India-made products in export markets.

The growth of India’s MedTech sector is supported by three main categories: changing disease patterns and healthcare delivery models, demographic and socioeconomic factors, and the evolving MedTech ecosystem. The prevalence of chronic diseases, focus on preventive care, and the aging population drive demand for wearables, remote monitoring devices, and technologies for early screening. Rising incomes, broader healthcare insurance coverage, infrastructure development, and expanding medical tourism are boosting demand for affordable and innovative medical devices. Meanwhile, the sector is transforming through strategic government initiatives, a vibrant start-up ecosystem, advanced digital capabilities, and substantial investment from private equity, venture capital, and FDI.

Start-ups play a pivotal role in driving the MedTech industry’s growth. Over 70 per cent of innovations in Indian MedTech start-ups are digitally integrated, leveraging AI, IoT, and cloud computing to develop portable devices, remote monitoring systems, and screening tools. Start-ups are enabling breakthroughs in areas such as early disease detection, home-based care, minimally invasive techniques, and advanced materials.

Despite these advancements, start-ups face significant challenges. Navigating complex regulations can be time-consuming and costly. Access to funding remains limited, with start-ups often struggling to secure investments. Attracting and retaining skilled professionals is another challenge in a competitive market. Regulatory and policy milestones like the National Single Window System (NSWS), India’s membership in the IMDRF and the National Medical Devices Policy 2023 are making strides to ease these barriers.

MedTech Mitra serves as a shining example of visionary collaboration in the healthcare industry. This groundbreaking initiative, brought to life by NITI Aayog, ICMR, and CDSCO, showcases the power of integrated effort in driving innovation. MedTech Mitra is more than just a platform – it represents a beacon of hope and progress in medical technology. this initiative is designed to support and empower medical technology innovators and entrepreneurs, propelling India towards its goal of becoming a global leader in medical technology.

India’s medical devices sector offers significant opportunities for start-ups to innovate, grow, and improve healthcare outcomes. While challenges persist, government support, funding agencies, and incubators are mitigating these hurdles. As the sector evolves, innovative start-ups will play a crucial role in driving growth and enhancing healthcare accessibility in India.