A CII-BCG report said India needs to fine-tune the PLI scheme for MSME participation and strengthen the raw material ecosystem to scale up its medtech sector.
India’s medtech industry is valued at around $16 billion, contributing just 2% of the $680 billion global market.
Under the Viksit Bharat 2047 vision, India aims to reduce import dependency to below 50% and raise its global market share to 10–12%.
There is a need to fine-tune the PLI scheme for MSME participation and develop the raw material ecosystem in order to scale up the country's medtech sector to account for 10-12% of the global market, according to a CII-BCG report.
Valued at around USD 16 billion, India's medical technology (medtech) industry currently accounts for only around 2% of the USD 680 billion global market.
With the government's Viksit Bharat 2047 vision, the sector has been identified as a strategic pillar in the 'Make in India' agenda, with aspirations to reduce import dependency to below 50% and increase India's share of the global market to 10-12%.
The CII-BCG report has outlined nine strategic initiatives to drive the next phase of growth.
The report stated that rationalising import duties and duty exemptions for critical raw materials and attracting MNC manufacturing and R&D hubs to India is crucial for sector growth.
Besides, there is a need to unlock the potential of medtech parks through co-innovation labs and shared foundries.
Also, aligning regulatory requirements with global standards to accelerate exports and strengthening public-private collaboration for indigenous innovation is required, it stated.
In addition, global awareness of Indian medtech innovations should be taken up, the report noted.
Establishing advanced training hubs to build industry-ready skills at scale should also be taken up, it opined.
The report highlighted that there has already been a reduction in import reliance in the sector from 80% in FY2022 to 60% in FY2024.
The government has launched many financial incentives, such as production-linked incentive (PLI) scheme, and state-level tax benefits for local manufacturing, benefiting the sector, it added.
