Medical Device Industry in India: Rising Investment in R&D
India’s medical device industry is experiencing a significant surge in research and development (R&D) investments, driven by both government initiatives and private sector commitments. This trend is positioning India as a burgeoning hub for medical technology innovation.
Government Initiatives:
- Production Linked Incentive (PLI) Scheme: The Indian government has approved 26 projects under the PLI scheme for medical devices, with a committed investment of approximately ₹1,206 crore (around $147 million). This initiative aims to foster growth and innovation in the MedTech industry, aspiring to establish India as a global manufacturing and innovation hub in the coming years.
- National Medical Devices Policy 2023: Launched to propel the sector’s growth from $11 billion in 2022 to $50 billion by 2030, this policy focuses on six key areas: regulations, infrastructure, R&D, investments, human resources, and branding.
Private Sector Investments:
- Wipro GE Healthcare: In March 2024, Wipro GE Healthcare announced plans to invest over ₹8,000 crore (approximately $960 million) in India over the next five years. This investment is directed towards enhancing local manufacturing and R&D capabilities, including the production of advanced medical devices like PET CT scanners, CT scanners, and MR Coils.
- Carl Zeiss AG: In November 2024, German optical technology firm Carl Zeiss AG inaugurated its first Global Capability Centre in Bengaluru, India. The company plans to double its local workforce to 5,000 within three years, focusing on cloud computing, cybersecurity, and developing software services for its medical technology subsidiary.
Foreign Direct Investment (FDI):
FDI in India’s medical device sector reached $3.4 million in the first three quarters of FY23, up from $1.9 million in FY22, marking the highest level since FY17. This increase reflects growing global confidence in India’s MedTech industry, spurred by favorable policies and a robust innovation ecosystem.
