Understanding the Dynamics of Indian medical technology market

By: Jesal Doshi, Deputy CEO, B Medical Systems

  Jesal Doshi, Deputy CEO, B Medical Systems

Jesal Doshi possesses a wealth of knowledge in private equity, economic insights, and corporate strategy. Since joining the company in 2015, Mr. Doshi has developed and implemented several initiatives that have transformed B Medical Systems from a regional/niche player to one of the most innovative companies in the medical refrigeration industry.

There is a new-found dynamism in the Indian medical technology market. The MedTech sector, an umbrella term used to represent a wide range of medical devices and equipment manufacturers and marketers, is thriving in growth and rapidly gaining global recognition due to innovative and cost-effective solutions. To share some numbers, the total size of the MedTech sector is estimated to be around $11 billion, and it is projected to grow over $50 billion by 2030 at a very impressive CAGR of approximately 28%. Rising healthcare awareness, the prevalence of lifestyle diseases, and the increasing spending capacity of the middle class have created a massive demand for new-age medical devices within the country. At the same time, we are also seeing new trends shaping the MedTech sector. For instance, new tech-based solutions for addressing the needs of clinical diagnosis, treatment and illness management are in vogue these days. In addition, there is a strong trend of smart hospitals where solutions based on new-age technologies like artificial intelligence (AI), the internet of things (IoT) and data analytics are increasingly used for better healthcare services and reducing wastage of critical medical resources. Further, the new medical device policy of the Government, pushed by the CDSCO, has brought in much-needed transparency in the medical devices sector in India. The policy reforms are also playing the role of a critical enabler for medical device manufacturers. As a result, we are seeing strong demand for certified medical cold chain solutions for storing and transporting vaccines, blood and its components and other critical biological ingredients used by the healthcare system. There is also a growing recognition and adoption of green and sustainable solutions for setting up a robust healthcare infrastructure in the country. B Medical Systems is significantly contributing to this trend with our solar-powered medical cold chain solutions.

Key learnings for the domestic industry from the Covid-19 pandemic

The covid-19 pandemic was an inflexion point for the domestic medical devices sector. As the pandemic disrupted the lives of millions of citizens, it triggered a strong demand for high-quality and cost-effective medical devices to cater to the needs of the vast population. The pandemic also catalysed the development of new technologies for patient care and supply chain management. Moreover, when the country embarked on a historic mission of vaccinating over 100 crore people in a record time, the need for reliable and efficient cold chain solutions for the safe storage and transportation of vaccines was strongly felt.

PLI scheme and medical device parks

To prepare the country to face future health challenges, there is a need to intensely focus on building capacities in the medical cold chain sector. A robust medical cold chain powered by efficient equipment across the country is critical for facing any future health crisis. In this regard, policy-based interventions and allocating sufficient financial support for the medical cold chain industry are also required from a long-term view. In addition, stricter regulations also need to ensure that the country's healthcare facilities and blood management systems use only certified and top-notch medical-grade equipment.

Regulatory scenario and demand for a separate department for medical devices

The regulatory scenario for the medical device industry in India has vastly improved since implementing the Medical Devices Rules (MDR) 2017 and further amendments introduced through MDR 2020 by the Central Drugs Standard Control Organisation (CDSCO). The systematic risk-based classification of medical devices and compulsory licensing rules has brought a wind of change in the MedTech sector, which is especially beneficial for the end consumers. From now on, and because of the rapidly increasing scale of the medical devices sector in the country, setting up a separate department for the medical devices sector under the Health Ministry may become imperative.

The future outlook for the medical technology sector in India

The future looks bright for B Medical Systems and India's medical technology sector. With increased R&D, focus on innovation and Government support, we have earned the experience of being a leading global manufacturer and supplier of reliable medical cold chain equipment in the last 40 years. As a result, we are confident of scaling new highs in terms of business and saving millions of lives in the process.

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