NewKerala.com

Key Points

India's MedTech sector is poised for explosive growth, projected to expand three times faster than the global market. The industry has already reduced import dependency significantly through government initiatives and foreign investments. Strategic MedTech parks and production-linked incentives are accelerating domestic manufacturing capabilities. However, challenges remain in regulatory complexity and skilled manpower that need addressing for sustained growth.

Key Points: India MedTech Sector to Grow 3x Faster Than Global Market

  • India's MedTech valued at $16B targets 10-12% global market share by 2047
  • Import dependency reduced from 80% to 60% between FY2022-2024
  • PLI schemes and $3.9B FDI boosting domestic manufacturing capacity
  • Four MedTech parks including AMTZ driving local innovation and production
2 min read

India's MedTech sector projected to grow 3x of global market: Report

India's MedTech industry valued at $16B aims for 10-12% global share by 2047 through PLI schemes, reduced import dependency, and MedTech parks.

"India's MedTech sector is projected to grow three times of the global growth - CII-BCG Report"

New Delhi, August 29

The domestic medical technology (MedTech) sector is projected to grow three times of the global growth, according to a report by Confederation of Indian Industry (CII), in collaboration with Boston Consulting Group (BCG).

Valued at approximately USD 16 billion, India's MedTech industry currently accounts for only around 2 per cent of the approximately USD 680 billion global market, as per the report.

With the government's Viksit Bharat 2047 vision, the sector has been identified as a strategic pillar in the "Make in India" agenda, with aspirations to reduce import dependency to below 50 per cent and increase India's share of the global market to 10-12 per cent.

The report notes that India has made significant strides in building MedTech manufacturing capacity.

The report added that the development of four MedTech parks, led by Andhra Pradesh MedTech Zone (AMTZ), is the most advanced.

As per the report, financial incentives such as the Production-Linked Incentive (PLI) scheme and state-level tax benefits have helped the sector.

India has boosted R&D infrastructure with government grants and 100 per cent FDI under the automatic route, attracting USD 3.9 billion Foreign Direct Investment (FDI) by December 2024.

Upskilling initiatives through institutions like NIPER to develop MedTech talent and rising private investments from both domestic players and global MNCs is reducing import reliance from 80 per cent in FY2022 to 60 per cent in FY2024.

Despite this progress, the report identifies key challenges to achieving manufacturing excellence: gaps in the ecosystem for high-end devices, regulatory complexity, shortage of skilled manpower, under-utilisation of MedTech parks, and limited MSME participation in incentive schemes.

To address these, the CII-BCG report outlines nine strategic initiatives to drive the next phase of growth. These include fine-tuning the PLI scheme for MSME participation. It suggests rationalisation of import duties and duty exemptions for critical raw materials. The report suggests developing a raw material ecosystem.

Among other suggestions, attracting MNC manufacturing and R&D, unlocking the potential of MedTech parks through co-innovation labs and shared foundries, aligning regulatory requirements with global standards to accelerate exports, are prominent.

- ANI

Share this article:

Reader Comments

R
Rohit P
Great progress but we need to address the MSME participation issue. Most incentives seem to benefit large companies. Small manufacturers need better support to compete with imports. The duty rationalization suggestion makes sense.
A
Arjun K
AMTZ in Andhra is doing amazing work! Visited last month and the infrastructure is world-class. If we can replicate this model across states, we'll definitely achieve the 10-12% global market share target. Make in India working! 💪
S
Sarah B
The skilled manpower shortage is concerning. We need more specialized courses in biomedical engineering and MedTech. Institutions like NIPER should expand their programs across more cities. Quality education will drive quality manufacturing.
V
Vikram M
Reducing import dependency from 80% to 60% in just 2 years is impressive! This will make healthcare more affordable for common people. Hope the growth continues and we become self-reliant in critical medical equipment.
M
Michael C
The regulatory complexity mentioned is a real issue. We need simpler, faster approvals for new devices while maintaining safety standards. Global alignment will help Indian companies export more easily. Good that the report addresses this.
A
Ananya R
$3.9 billion FDI shows global confidence in Indian MedTech! 🚀 But

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50