Budget 2024: MedTech industry expects special attention on key issues

New Delhi: The Indian medical technology market has been growing steadily due to factors such as increasing healthcare expenditure, rising awareness about healthcare, and government initiatives to promote indigenous manufacturing.  Indian MedTech companies are focusing on developing innovative solutions tailored to the needs of the Indian healthcare system. This includes affordable medical devices, telemedicine solutions, point-of-care diagnostics, and medical imaging technologies.

Despite the growth opportunities, the Indian medtech industry also faces challenges such as regulatory hurdles, infrastructure limitations, and the need for skilled manpower. Addressing these challenges will be crucial for sustaining growth and competitiveness in the global market.

Listing pre-budget recommendations from the government, Pavan Choudary, Chairman Medical Technology Association of India (MTaI) said: “It is heartening to see that the government has placed affordability as one of its top priorities. However, the customs duties and taxes levied on medical devices in India are one of the highest in the world and highest among the neighbouring countries which directly impacts patient affordability; this is therefore contradictory to what the government is trying to achieve. As per government data, more than 80% of critical medical devices are imported into India to meet the rising demand for quality healthcare. We hope that as the preparation for the Union Budget 2024 gets underway, a correction on the tariff rates is urgently being considered.”

“Policy makers need to review the steep 33% increase in imports from the USA (the dominant exporting country to India) of Rs. 10858 Crore over Rs. 8186 Crore in 2021-22, Germany up at Rs. 6188 Crore from Rs. 4855 Crore in 2022, by a steep 27%.Imports from the Netherlands also increased by 20 percent to Rs 3552 crore in 2022-23 from Rs 2956 crore in 2021-22, whereas imports from China increased by 11 percent at Rs. 10,384 crore in 2022-23 from Rs. 9374 crore in 2021-22 and Singapore by 15 percent from Rs. 4800 crore to Rs. 5520 crore,” said Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD).

“Supporting policies are needed so that Indian Medical Devices Industry can make quality healthcare accessible and affordable for the common masses, aim to place India among the top five medical devices manufacturing hubs worldwide and help end the 80-85 per cent import dependence forced upon us and an ever-increasing import bill of over 63,200 Crore,” Nath added.

The Association of Diagnostic Manufacturers of India (ADMI) expects the government to focus on quality standardization & rationalization of medical devices. Jatin Mahajan, Secretary – ADMI and Managing Director, J Mitra & Company said, “The Indian Medical Devices Industry has made remarkable progress in recent years. India is one of the leading medical device markets, with a size of about ₹1,04,760 crores (US$12.8 billion) in 2023 and is likely to reach US$ 50 billion by the year 2030 with a CAGR of 16.4 %. If India is to make a substantial dent in the global medical devices market, much must be done to provide the growth impetus. There are numerous other issues, concerns, and attention areas that we have highlighted to the Government from time to time – insufficient raw material & supplies, access to clinical trial samples, and the limited effectiveness of the PLI scheme since it does not cater to the relatively less significant players. For India to shine on the global MedTech map, the Government must address these concern areas on a war footing.”

“MedTech industry in India holds high expectations, said Chandra Ganjoo, Group Chief Executive Officer,  Trivitron Healthcare adding further, “With an alarming 80-85% dependence on imports, resulting in a massive import bill of over ₹ 63,200 crore, it’s crucial for the government to catalyze domestic manufacturing. This not only reduces the financial strain but also propels India towards self-reliance in medical technology. The industry advocates for a comprehensive strategy: incentivizing R&D and indigenous production, streamlining regulatory processes for faster product approvals, and enhancing infrastructure and skills. Tax incentives for investment in advanced technology, streamlining bureaucratic procedures, and fostering industry-academia collaboration can stimulate domestic manufacturing. This approach should align with global standards and ensure a stable regulatory environment to attract investments.”

“The Government has a chance to provide more support to the MedTech sector in the upcoming budget. This could be achieved by reducing import duties and lowering GST on locally procured raw materials. The focus should be on critical medical devices such as stents, heart valves, knee, and hip implants. The healthcare industry in India is changing rapidly, and it is poised to become a leader in innovation. India is already creating cutting-edge technologies that are comparable or even superior to Western standards. This aligns with the larger goals of the Indian Government, which include Atmanirbhar Bharat and Viksit Bharat,” said Vivek Shah, CEO, Meril.

“Empowering the MedTech and Healthcare industry as a cornerstone of the Indian economy requires a dynamic shift towards Atmanirbhar Bharat and innovation,” said Chander Shekhar Sibal, Sr. Vice President & HOD, Healthcare Business, FUJIFILM India. “By building a robust ecosystem for health-tech startups and emphasizing Make in India initiatives like the Andhra Pradesh Medtech Zone for researching and producing cutting-edge medical equipment, the country is headed towards becoming the leading supplier of medical devices worldwide. Strengthening digital healthcare infrastructure (such as real-time monitoring, AI-integrated machinery, IoT-enabled patient tracking, and digital platforms) and attractive Make in India incentives for production will lay the foundation for accessible wellness products and services. Moreover, through preferential treatment for homegrown companies in tender allocation and increased customs duties on readily available equipment, the nation can create the groundwork for a thriving ecosystem supporting the growth of local manufacturers.”

“India has the potential to transform into a global preventive healthcare role model through strategic budgetary allocation across three key pillars: preventive screening access via decentralized medical technology, self-reliant domestic MedTech capabilities, and programmes enabling mass anemia eradication,” said Partha Pratim Das Mahapatra, Founder and CEO of EzeRx.  “By channeling funds into decentralized screening delivery models, domestic MedTech manufacturing, and anemia eradication programmes in the interim budget, India can truly cement its position as a pharmacy and medical technology innovator,” Partha added.

In his comments, Dr Aakaar Kapoor, CEO and Lead Medical Advisor-City X-Ray and Scan Clinic said: India being a fertile ground for innovation in MedTech, the industry is in need of single-window clearances for start-ups for the ecosystem to survive. A system that facilitates early validation of MedTech devices and services could enhance the development and deployment of various healthcare technologies. Further, one of the primary needs is a requirement of a tax break for facilities in upcoming economic zones, MedTech Parks & MedTech Manufacturing facilities. Also, a significant reduction in GST would spur consumer spending across all products and services. With the country facing a shortage of medical manpower, the sector also recommends significant deduction of expenses faced on upskilling and skill development in healthcare.”