The outlook for India’s medtech sector has never been more promising as we look ahead to 2025.

With the global industry valued at $500–$600 billion, there is immense potential for India to expand its share. The domestic medtech market, estimated at $15 billion, remains significantly behind global benchmarks. To address this gap, the country must prioritise scaling up the sector to align with international standards.

The long-awaited roll-out of the Medical Devices Bill (2023), for example, will help pave the way for greater ease of doing business for this industry. By elevating medical devices as a distinct category with separate regulatory oversight, the bill will enable improved governance over both domestically produced and imported devices.

The government also introduced the production-linked incentive (PLI) scheme for the sector. The initiative is yet to reach its full potential. Expanding the range of eligible products and extending the scheme by 2-3 years will unlock greater participation from companies. With much of the allocated budget still unutilised, broadening the range of products covered under the PLI will stimulate growth and enable the industry to flourish. 

Additionally, greater focus on developing domestic suppliers of high-quality raw materials will help the sector advance to the next stage. This will significantly reduce reliance on imports, bolstering the industry’s self-sufficiency and resilience. 

Cross-industry ties

An important trend gaining momentum is cross-industry collaboration, particularly as India’s electronics and chip manufacturing sector expands. Harnessing these synergies will strengthen not only the country’s medtech supply chain but also its position as a formidable global healthcare player. The nation’s approach is evolving from ‘Make in India’ to ‘innovate, design, and make in India’, driving excellence in not only consumables but also high-value medical devices.

On the other hand, allocation to healthcare has not increased in the last five-odd years, even as medical inflation continues to rise. To truly fuel the growth of India’s medtech sector and provide adequate healthcare to the growing population, healthcare spending must increase to 3 per cent of GDP. This will not only address sectoral challenges but also lay the groundwork for long-term growth and self-sufficiency.

Another area of promise is the government’s effort to boost export incentives — an increase from 0.6–0.9 per cent to 2–2.5 per cent can accelerate the growth of medtech exports to developed markets. This ensures that exporters can receive refunds on embedded taxes and duties as a percentage of ‘free on board’. 

Similarly, initiatives such as the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme could help mitigate high costs — like those associated with clinical trials and getting foreign regulatory (FDA/CE) approvals — and unlock new export opportunities for Indian firms.

Additionally, simplifying the GST structure by consolidating multiple slabs into a unified rate of 12 per cent would streamline compliance. On the back of these initiatives, 2025 could prove transformative for India’s medtech sector and its impact on the global landscape.

(The writer is Managing Director, Poly Medicure Ltd. Views are personal)