Why Medical Devices Firms Seek Lifelines

Investments rise but companies ask for more hand-holding and incentives to make India a manufacturing base.

- P.B. JAYAKUMAR

ON APRIL 27 last year, Centre cleared the National Medical Devices Policy 2023. The move was part of plans to help the sector grow from $11 billion in 2022 to $50 billion in 2030 with six broad areas of policy intervention—regulations, infrastructure, R&D, investments, human resource and branding. That would mean 15%-plus growth every year for next seven years. Both Indian and global medical devices industries grew just over 9% in 2022.

The policy was a long-awaited booster for the ₹90,000 crore medical devices sector in India, the 4th largest in Asia after Japan, China and South Korea. The initial draft of the policy was formulated way back in June 2014 but not implemented due to various reasons, says Rajiv Nath, forum coordinator, AiMed (Association of Indian Manufacturers of Medical Devices). But is it enough?

MNCs Investing In R&D

Thanks to policy initiatives in recent years, global medical device makers are now investing in India, especially in research and innovation. A recent KPMG and industry body APACMed’s research report says foreign direct investment (FDI) in medical device sector was $3.4 million in first three quarters of FY23, up from $1.9 million in FY22 and highest since FY17. FDI in medical and surgical appliances sector was $280 million between April 2000 and March 2023, according to an India Brand Equity Foundation analysis.