The domestic medical technology (MedTech) sector is projected to grow at three times the global rate, according to a report by the Confederation of Indian Industry (CII) in collaboration with the Boston Consulting Group (BCG).
Currently valued at around USD 16 billion, India’s MedTech industry accounts for only about 2 per cent of the nearly USD 680 billion global market. However, under the government’s Viksit Bharat 2047 vision, the sector has been identified as a strategic pillar of the Make in India agenda, with goals to reduce import dependence to below 50 per cent and increase India’s share of the global market to 10–12 per cent.
The report noted that India has made significant progress in MedTech manufacturing, led by four dedicated MedTech parks, with the Andhra Pradesh MedTech Zone (AMTZ) being the most advanced.
Financial incentives such as the Production-Linked Incentive (PLI) scheme and state-level tax benefits have further supported the industry. The government has also strengthened R&D infrastructure with grants and permitted 100 per cent FDI under the automatic route, attracting USD 3.9 billion in Foreign Direct Investment (FDI) by December 2024.
Upskilling initiatives through institutions like NIPER, coupled with rising private investments from domestic players and global multinationals, have helped reduce import reliance from 80 per cent in FY2022 to 60 per cent in FY2024.
Despite this progress, the report flagged challenges such as 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 outlined nine strategic initiatives, including fine-tuning the PLI scheme for MSMEs, rationalising import duties, duty exemptions for critical raw materials, and building a raw material ecosystem. It also recommended attracting MNC manufacturing and R&D, unlocking the potential of MedTech parks through co-innovation labs and shared foundries, and aligning regulatory norms with global standards to accelerate exports.
— ANI