Medtech firms bet on export

Local medical devices manufacturers look beyond borders to capitalize on the rising demand in global markets.

- Jessica Jani

India's medical technology (med-tech) industry is poised for rapid growth in the coming years, with several new players entering the segment to meet the rising global demand for a range of medical devices.

The Indian medtech industry is relatively young and will take time to earn the confidence of local hospital chains that source most of their devices from established, foreign multinational corporations (MNCs). As such, Indian medical equipment manufacturers are eyeing regulated global markets like the US and Europe, as well as Asia Pacific and the Middle East regions for business and better revenue realization, industry executives and experts said.

According to the Association of Indian Medical Device Industry, the domestic medtech market was valued at around $12 billion in FY24, and may reach $50 billion by 2030, growing at a 20-23% compound annual growth rate for the next five years, according to consulting firm EY. The sector has also seen a huge inflow of private funding this year. By August, it attracted over $1.2 billion of private equity and venture capital investments, the highest in the past five years.

"You will see a large part of what is produced here will find its way to the global markets," Suresh Subramanian, national lifesciences leader, EY-Parthenon India, told Mint.

India's medical device exports rose at a CAGR of 14% from FY20 to reach $3.8 billion in FY24, a November report by EY showed.

However, India continues to remain a net importer of medical devices, meeting 80-85% of its requirements from abroad. In FY23-24, medical devices imports reached $8.2 billion, up 13% from a year ago and more than twice the value of total exports.