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Indian Medtech Firms Expand Globally Amid Import Challenges

Why in the news?

India’s medtech industry is rapidly growing, focusing on exports to global markets despite importing 80-85% of medical devices, and aims to achieve self-sufficiency within five years.

Current Market Scenario and Growth Potential

• India’s medtech industry is growing rapidly, projected to increase from $12 billion in FY21 to $50 billion by 2030 at a CAGR of 20-23%.
• Despite the domestic potential, India remains a net importer, meeting 80-85% of its needs through imports, which reached $8.2 billion in FY24.
• Regulatory clarity under the National Medical Device Policy 2023 and a growing talent pool in engineering and technology are improving global competitiveness.

Focus on Exports and Revenue Realization

• Medtech exports grew at a CAGR of 14%, reaching $3.8 billion in FY24, driven by global demand and better revenue realization for Indian products abroad.
• Companies are targeting markets in the US, Europe, Asia-Pacific, and the Middle East, capitalizing on geopolitical shifts and diversification away from China.
• Startups like HIRS Navigation are expanding globally, with plans to enter European markets, while established players like Healthium Medtech maintain a balanced domestic and international presence.

Challenges and Opportunities

• Limited R&D ecosystems, lower cost realization domestically, and trust deficits hinder Indian firms’ local adoption by hospital chains.
• Electronic medical equipment constitutes 64% of imports, but consumables and low-tech device imports are expected to decline as domestic production strengthens.
• Experts believe Indian firms will achieve self-sufficiency in low-to-medium tech equipment within five years, bolstering their position in both local and global markets.

India’s medtech sector is in an evolutionary phase, balancing domestic growth with increasing global outreach.

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times