Pre-Budget 2024: Mapping Growth for India's Medical Device Sector
The medical devices industry in India is experiencing remarkable growth, with 2023 revenues reaching approximately ₹1,04,760 crores (US$12.8 billion). Forecasts suggest India could reach US$50 billion by 2030 with a CAGR of 16.4%, underscoring immense potential ().
Key developments in 2023 include initiatives like the National Medical Devices Policy 2023 (NMDP 2023) and increased investments, alongside the establishment of medical device parks nationwide. These efforts are poised to positively impact the industry.
‘Despite #India's 1.65% share in global #medtech, ranking 4th in Asia and top 20 globally, ongoing government support is vital for sustained growth.’
India's Position in the Global Medical Devices Market
According to the India Brand Equity Foundation (IBEF), India's share in the global medical devices market is approximately 1.65%, positioning India as the 4th largest market in Asia, following Japan, China, and South Korea, and among the top 20 globally.The government's decision in 2023 to permit imports of refurbished medical devices goes against the National Medical Device Policy 2023, potentially leading to the widespread dumping of outdated technology and electronic waste from abroad. This contradicts the principles of Atma Nirbhar Bharat and Make in India, posing challenges for Indian companies striving to develop cost-effective, advanced solutions. Such imports should be restricted, except in critical situations where Indian alternatives are unavailable in the short term.
Quality standardization remains a critical barrier hindering the global expansion of Indian medical device firms. There is an urgent need for rationalization in this area. The government should ensure that Indian standards like ICMED and BIS are accorded equal respect, credibility, and acceptance as international benchmarks such as ISO, FDA, CE, MDR, and AIMD. Without achieving 'at-par' status, Indian exporters will continue to face obstacles, necessitating multiple certifications specific to regions, countries, and products.
Export challenges, with 2022 exports valued at ₹19,803 crore (US$2.40 billion) and a target of US$10 billion by 2025, require attention. Strengthening bodies like the Export Promotion Council for Medical Devices (EPC-MD) and addressing quality standardization issues are imperative.
Government policies, including allowing imports of refurbished medical devices, raise concerns against self-reliance initiatives like Atma Nirbhar Bharat and should be carefully regulated.
Quality standardization, skilled workforce development, AI implementation, and addressing the inverted duty structure remain critical. Collaborative efforts between government and industry are essential to overcome these challenges and secure a prominent global position for Indian MedTech.
Reference:
- Medical Device Industry - (https:www.investindia.gov.in/sector/medical-devices)