India's Time To Take Lead in Medical Device Sector is Now: Health Minister Mandaviya

The allowance of 100% FDI under the automatic route signifies the government's confidence in the potential of the medical device industry and its commitment to providing a conducive environment for investors

Lauding India's capability to lead the medical device market, Union Health Minister Mansukh Mandaviya has said India's time to lead the said market segment has come and it's now. He further said that India's recognition as the "pharmacy of the world" is well known and it's time that the country take lead in the manufacturing of affordable, innovative and quality medical devices.

Over the past decade, India's healthcare domain has experienced a remarkable expansion, positioning the country as a significant player in the worldwide medical device market.

This shift has increased healthcare spending and increased demand for specialised medical services. Consequently, the sector's value skyrocketed to $190 billion in 2020 and is forecasted to reach an impressive $370 billion by the fiscal year 2024-2025, primarily due to the expansion of specialised care across diverse healthcare segments.

Playing a pivotal role in India's healthcare delivery system, the medical devices sector contributes to the prevention, diagnosis, treatment, and management of medical conditions.

Encompassing electronics equipment, implants, consumables, disposables, IVD reagents, and surgical instruments, this sector is valued at $11 billion, making up about 1.5% of the global medical device market.

100% FDI Giving Growth Impetus

Significantly, the Indian government's endorsement of 100% foreign direct investment (FDI) in the medical devices sector has spurred investments, and the country's production of vital medical devices during the COVID-19 pandemic, such as ventilators and diagnostic kits, underscores its significance.

The current policy framework aims to ensure accessibility, affordability, safety, and quality in the medical devices sector while fostering self-sustainability and innovation. With a focus on establishing a robust regulatory structure, creating a supportive ecosystem for domestic manufacturing, and promoting innovation and education, the Department of Pharmaceuticals is committed to harnessing the sector's full potential.

The drive to promote local medical device production aligns with industry projection to capture a 10-12% global market share and an industry worth $100-300 billion by 2047.

Notable initiatives include the National Medical Device Policy 2023 and the establishment of the Export Promotion Council for Medical Devices.

In a noteworthy move to bolster domestic manufacturing, Minister Mandaviya highlighted the Production Linked Incentive (PLI) scheme, with an INR 3,420 Cr allocation across four target segments of medical devices.

Another significant stride is the 'Promotion of Medical Devices Parks' scheme, aimed at nurturing innovation, research, and product development through an INR 400 Cr investment in shared infrastructure facilities.

Under this scheme, Uttar Pradesh, Tamil Nadu, Madhya Pradesh, and Himachal Pradesh have each received INR 100 Cr in financial support.

Commending India's vibrant medical device startup ecosystem comprising over 250 organisations, Mandaviya praised the nation's swift and impactful COVID-19 response, garnering global acclaim. The nation's rapid supply of medical essentials, including diagnostic kits, ventilators, and protective gear, showcased its capabilities and dedication.

Furthermore, Mandaviya emphasised the government's substantial investments in infrastructure development, which will stimulate demand for cutting-edge medical technology. Notable figures, including Gujarat Chief Minister Bhupendra Patel, Gujarat Health Minister Rushikesh Patel, and NITI Aayog member (Health) Dr. V K Paul, attended the 'India MedTech Expo 2023.'

In this journey, Union Minister Mandaviya underscores India's openness to foreign direct investment, the introduction of progressive policies, and significant infrastructure investments.