The MedTech foreign direct investment (FDI) trajectory in 2023 began with $39 million in Q1 (Jan-Mar), surged to $301 million in Q2 (Apr-Jun), and saw an inflow of $124 million in Q3 (Jul-Sep).
According to the Medical Technology Association of India (MTaI), which represents research-based medical technology companies, India has experienced an unprecedented surge of $464 million in foreign direct investments (FDI) in the MedTech sector during the first three quarters of the year.
Pavan Choudary, chairman of MTaI, underscored the pivotal role played by foreign investments in India's MedTech landscape, highlighting their potential to catalyse medical tourism, create employment opportunities, and strengthen the nation's economic foundation.
"The MedTech sector has seen a significant increase in FDI, already clocking 464 million dollars in the first three quarters of 2023. This shows the high potential of this sector and global investors' recognition of the same," said Choudary.
He credited the government's focus on improving the ease of doing business, the establishment of a globally harmonised regulatory regime for the medical device sector, and initiatives like the National Medical Device Policy (NMDP) 2023 and the Production Linked Incentive (PRIP) scheme for garnering industry support.
The chairman highlighted the positive impact of these measures, expressing industry confidence and a growing interest from investors. He also noted a shift in global dynamics, with Western nations, including Japan, increasingly favouring India as their preferred destination for friend-shoring activities.
MTaI member companies, representing a substantial portion of the critical care medical devices market, contribute to 70% of the overall medical device market share.
Choudary highlighted the pivotal role played by MTaI members through investments in manufacturing, research and development (R&D), and healthcare worker training. These investments not only serve Indian patients but also contribute significantly to creating the market landscape in the country.
Choudary outlined some key hurdles that could further enhance the MedTech sector's potential for attracting investments if addressed by the government. These include pricing instability, the multiplicity of authorities governing the industry, and high tariff rates.
The trajectory of MedTech FDI inflow over the three quarters of 2023 is notable. Starting at $39 million in the first quarter (Jan-March 2023), it surged to $301 million in the second quarter (April-June 2023). The third quarter (July–September 2023) witnessed an inflow of $124 million, culminating in a cumulative total of $464 million for January–September 2023.
This surge in foreign investments signifies India's growing prominence in the global MedTech landscape and underscores the sector's potential to contribute significantly to the country's economic growth.
In a similar move to boost the medical technology sector and other industries, the Gujarat government inked Memorandums of Understanding (MoUs) worth INR 1,770 Cr last month.
This strategic move is part of a broader initiative to reduce India's dependency on medical device imports and increase domestic production. MoUs were signed in pharma, medical devices, biological manufacturing, medicines, injections, tablets, capsules, and bulk drug production.
The College of Healthcare Information Management Executives (CHIME) is an executive organization dedicated to serving senior digital health leaders. CHIME includes more than 5,000 members in 56 countries and two US territories and partners with over 150 healthcare IT businesses and professional services firms. CHIME enables its members and business partners to collaborate, exchange ideas, develop professionally and advocate the effective use of information management to improve the health and care throughout the communities they serve. CHIME's members are chief information officers (CIOs), chief medical information officers (CMIOs), chief nursing information officers (CNIOs), chief innovation officers (CIOs), chief digital officers (CDOs), and other senior healthcare leaders. The CHIME India Chapter became the first international chapter outside North America in 2016 and is now a community of over 70+ members in India. For more information, please visit www.chimecentral.org