India stands in the 4th position in the Asian medical devices market after Japan, China, and South Korea, and amongst the top 20 medical devices markets globally. The Indian medical devices industry received the status of an ‘independent industry’ and the title of ‘sunrise’ sector under the Make in India scheme in 2014.
The market size of the Indian medical devices industry is presently $11 billion, capturing 1.5% of the international market. For increasing the patient-centric approach with an objective to lead in innovation and manufacturing of medical devices, the Indian government also permitted the Medical Devices Policy, which predicts a share of 10 to 12% globally in the next 25 years.
The Production-Linked Incentive (PLI) Scheme was launched to incentivize the manufacturing of medical devices in the nation. Under this scheme, till now, 26 projects have been approved in total, with a dedicated investment of Rs. 1,206 crore ($147 million) to support growth and innovation in the Make in India and MedTech industry as the global hub for innovation and manufacturing in the coming years. This scheme offers financial incentives for incremental sales and opens up opportunities for both domestic and international players to set up and expand their production capabilities in India.
The Indian Medtech industry is ready to expand at a fast pace, with a market share of $2.5 billion of Indian MedTech players in FY 2023, a rise from around $1.8 billion in FY 2020. This growth depicts an innovation framework and a stronger ecosystem. Recently, 13 greenfield plants were inaugurated that target self-reliance and improve the indigenous development of cancer-care equipment, such as developed coronary stents and linear accelerators for radiotherapy. The COVID-19 pandemic has increased India's role globally, as the nation stands as the world's second-largest producer of Personal Protective Equipment (PPE) kits. Identifying India as a key growth market, many companies are growing their R&D efforts in India. The latest R&D center of Siemens Healthineers in Bangalore has been working to create products for Southeast Asia, Africa, Eastern Europe, and South America, and the fast adoption of technologies such as 3D printing according to international trends is reflected in the launch of a 3D bioprinting facility for creating artificial organs at Andhra Pradesh MedTech Zone.
Why Medical Devices?
Robust Demand
The growing number of medical facilities will increase the demand for medical devices in the market. Some government initiatives were also launched, such as ‘Production Linked Incentive (PLI) Scheme for Medical Devices’, and creating medical parks will boost demand for medical devices.
Competitive Advantage
India provides a skilled workforce, cost-effective manufacturing, and robust IT support for health tech innovation. The government has allowed 100% FDI under the automatic route, international players are increasing their footprint in India’s medical devices industry.
Policy Support
The Government of India has come up with several schemes and policies, such as the National Medical Devices Policy, Operational Guidelines of the Scheme, and Public Procurement (Preference to Make in India). In 2023, the government formulated six strategies as part of the National Medical Policy to boost the industry's potential, with a detailed action plan for execution.
Opportunities
The Indian medical device market is fueled by 70-80% imports from nations such as the US, China, and Germany, which further creates growth opportunities for Indian companies. Also, the value of medical devices exported in 2022-23 was $3.39 which is an increase from $2.92 billion in 2021-22.
