Accelerating India’s Med-Tech Exports: Challenges and Opportunities

India’s medical technology (med-tech) sector is on the cusp of transformation, with export projections reaching up to $20 billion by 2030. However, achieving this ambitious goal will require targeted government support, enhanced regulatory frameworks, and improvements in the ease of doing business, according to the Confederation of Indian Industry (CII).

The Current Landscape

Himanshu Baid, Chairman of CII’s National Medical Technology Forum, highlighted the pressing need to bridge the gap between imports and exports in the med-tech sector. India currently imports 60-70% of its medical equipment, with imports valued at approximately $8 billion, compared to $4 billion in exports. Domestic manufacturing accounts for only 30% of the sector’s needs.

Despite these challenges, Baid remains optimistic, citing the global shift towards the “China plus one” strategy. He believes India is well-positioned to capitalize on this opportunity, given its competitive labor costs, software expertise, and robust hardware capabilities.

Key Challenges and Recommendations

1. Expanding the Production Linked Incentive (PLI) Scheme

The PLI scheme for medical devices has shown promise but is limited in scope, benefiting only 28 companies with a budget of ₹3,400 crore. Baid called for an expansion of this scheme to cover a broader range of products, emphasizing its potential to boost exports and domestic manufacturing.

2. Tackling Quality Control Order (QCO) Barriers

The current requirement for raw material suppliers to register with the Bureau of Indian Standards (BIS) is a significant hurdle. Smaller suppliers often lack the resources to comply, which stifles local manufacturing and undermines the “Make in India” initiative. Baid urged the government to exempt the med-tech industry from these requirements to streamline production processes.

3. Establishing a Dedicated Regulator for Medical Devices

The medical devices industry, currently regulated under the Drugs and Cosmetics Act, shares oversight with pharmaceuticals. Baid advocated for a separate regulatory body, tailored to the unique complexities of med-tech devices, which often involve a blend of electronic, mechanical, and plastic components.

4. Enhancing Export Incentives

Baid suggested increasing the duty remission under the RoDTEP scheme from the current 0.5-0.7% to 2-2.5%. This adjustment would help offset hidden manufacturing costs and make Indian exports more competitive globally.

5. Improving Export Infrastructure

India’s export logistics remain a bottleneck, with shipping containers taking two to three weeks to leave the country compared to China’s two to three days. Streamlining shipping processes and reducing logistical delays is critical to boosting India’s global competitiveness.

A Vision for the Future

With the right interventions, India’s med-tech industry could significantly reduce its reliance on imports, lowering them to $3-4 billion by 2030. Simultaneously, exports could climb to $15-20 billion, positioning India as a global med-tech hub.

The government’s role in easing regulations, expanding incentives, and improving infrastructure will be pivotal in realizing this vision. As Baid concluded, “Streamlined policies and robust support mechanisms can turn India’s med-tech sector into a global powerhouse.”

This transformation would not only boost exports but also enhance India’s healthcare capabilities, ensuring better accessibility and affordability for medical technologies domestically. The next decade promises to be a defining period for India’s med-tech sector.