India’s Medtech Industry Targets $50 Bn Growth, Aims to Reduce Import Dependency

Currently, India is the 4th largest market for medical devices in Asia and among the top 20 globally. Net imports for FY 2022-23 stand at $4101 million with an import coverage ratio of 0.45.

India’s medtech industry has set its sights on a staggering $50 billion growth. The industry has been focusing on reducing its dependency on imports, a move that has been in the works for some time now.

In a recently held event organized by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, in collaboration with the Confederation of Indian Industry (CII), experts emphasized that there is a need to reduce import dependence from 75% to 50% within five years.

The consensus comes in the wake of a series of strategic decisions aimed at boosting the domestic manufacturing sector.

Concerns Raised

The industry has been working to reduce its reliance on imports, which according to industry stakeholders will boost the local economy and create numerous job opportunities.

Dr Arunish Chawla, secretary, Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers, emphasized the need for collaborative efforts to lay the foundation for India’s medtech policy for the next 10-15 years.

“If we do this policy stack exercise well, this will lay the foundation of medtech policy for the next 10-15 years. We have to work towards improving export competitiveness in the Meditech sector through value-added manufacturing and improve the import coverage ratio to 1.0,” Dr Chawla added.

According to him, India's medtech industry holds immense potential, with projections estimating a growth rate of 28% annually, reaching a size of $50 billion by 2030.

Currently, India is the 4th largest market for medical devices in Asia and among the top 20 globally. Net imports for FY 2022-23 stand at $4101 million with an import coverage ratio of 0.45.

Talking about the sector, the secretary noted that it has witnessed a surge in imports, driven primarily by countries such as the US, China, and Germany.

However, India's robust policy ecosystem presents opportunities for export boosts and reducing import dependence through domestic manufacturing, he stated.

RP Singh, joint secretary of the Department of Pharmaceuticals, stressed the urgency of reducing import dependence amidst increasing demand for medical devices due to rising communicable, non-communicable, and chronic diseases.

He reiterated the government’s commitment to transitioning towards a value-based and innovation-driven industry to unlock its full potential.

Himanshu Baid, chairman, the CII National Medical Technology Forum, highlighted collaborative excellence as the key to driving tangible outcomes and propelling the medtech industry toward unparalleled growth.

With the sector’s exports surpassing $4 billion, Baid emphasized the industry’s potential to capture 10% of the global market share over the next decade.

However, he also underscored the need for enhanced data collection mechanisms to address gaps in product consumption and production within India.

Other key stakeholders noted the importance of fostering industry-friendly policies, streamlining regulatory frameworks, and extending support to micro, small, and medium enterprises (MSMEs) through targeted incentives and technology funds to realize the sector’s full potential.