Balancing Innovation and Affordability in Medical Solutions for India

Rajiv Gupta, Country Business Leader (Healthcare Business) at 3M India Limited in an exclusive interaction with India Pharma Outlook, discusses the growth of India's medical device market, noting that 70 percent of devices are still imported. He highlights how providers are increasingly focusing on local manufacturing, cost-effective innovation, and utilizing government incentives to enhance affordability and reduce reliance on imports. Rajiv Gupta has over two decades of experience driving profitable growth in competitive markets. He has expertise in P&L management, strategic planning, Six Sigma, business development, and operational leadership, with a proven track record in market leadership and team development.

India's medical solutions market is expanding, but 70 percent of devices are still imported. How are solution providers addressing this reliance while ensuring affordability and innovation?

India’s medical device industry, valued at $12 billion in FY 2023-24, is projected to reach $50 billion by 2030, growing at a robust 15-20 percent CAGR. Whilst the local medical device manufacturing is growing at a fast clip, the dependence on imported medical devices has not come down. The Government of India has been incentivizing, and the Medical Device industry has been investing to build local manufacturing capabilities. Government policies like Make in India, Production Linked Incentives (PLI) and designated Medical Device Parks are expected to build up this sector. 

3M India has invested in a state-of-the-art manufacturing facility at Ranjangaon, Pune, to make products for India. This facility has helped us localize some of the global innovations of 3M while being affordable to customers. The focus has been on local manufacturing of consumables and disposables at scale to make them affordable. 

Obviously, this requires the medical device players to understand the local requirements better and develop products at affordable prices. We have seen green shoots of success, and I believe we will see more medical device manufacturers, MNCs as well as Local, addressing this need soon. While the primary focus is currently on consumables and disposables, we will see more impetus on high-quality, precise, and reliable medical devices leveraging cutting-edge technologies like CNC machining, 3D printing, and robotics. 

The National Medical Devices Policy 2023 emphasizes domestic innovation, but local manufacturing faces funding and supply chain challenges. What strategies are providers using to overcome these barriers and scale cost-effective solutions?

The National Medical Devices Policy 2023 is a key initiative by the Government of India aimed at positioning India as a global manufacturing hub for medical devices. To support the goals outlined in this policy, it has implemented a range of measures, including a clear licensing framework, a Single-Window Clearance System, and harmonizing quality standards, all of which ensure streamlined operations and adherence to global norms.

Medical device manufacturers are capitalizing on government projects such as medical device parks, special economic zones, and the National Industrial Corridor Development Program to enhance connectivity with customers and improve their supply chain.

Additionally, the sector benefits from 100 percent Foreign Direct Investment (FDI) under the automatic route, with an estimated $3.73 billion in FDI received in the medical and surgical appliances sector since 2000. Private equity (PE) and venture capital (VC) investments have played a significant role in supporting startups focused on consumables and disposables, particularly in the areas of diabetes and cardiovascular diseases. Crowdfunding and strategic partnerships with established industry players also present valuable opportunities for medical device startups to grow and innovate within this expanding ecosystem.

AI-integrated medical solutions promise cost efficiency, but infrastructure and training gaps hinder adoption in smaller cities. How are providers bridging these gaps to ensure affordability and accessibility?

With 68.2 percent of its population residing in rural areas, India faces a significant healthcare access challenge. According to the National Health Profile, India has one of the lowest doctor-to-population ratios, with only one doctor for every 5,854 people in rural regions. In such a scenario, AI-powered solutions, like chatbots, could prove invaluable by providing medical advice for minor health concerns and alleviating the strain on healthcare systems.

Furthermore, diagnostic algorithms based on AI can assist healthcare providers in making accurate diagnoses, especially in underserved areas with a shortage of medical professionals. AI is expected to play a crucial role in improving clinical decision-making, enhancing diagnostic accuracy, and predicting patient outcomes in rural areas. Combined with investments in telemedicine, these innovations have the potential to bridge the healthcare gap and ensure more equitable access to quality care in remote regions.

India’s success in global pharma, particularly in cost innovation and scalability, contrasts with slow progress in medical device affordability. What specific strategies from pharma can solution providers adopt to enhance scalability in medical devices?

India has established itself as a leader in the pharmaceutical space, driven by its vast talent pool, cost-competitive production capabilities, robust infrastructure, and a strong focus on generics. To replicate this success in the medical device sector, it is essential that the government incentivize R&D initiatives, create a conducive regulatory environment, and foster collaborative platforms for public-private partnerships. These measures will help establish India as a hub for medical device innovation.

Additionally, government and medical device manufacturers have to invest in skill development and enhance infrastructure, which will play a crucial role in nurturing a strong ecosystem for medical device innovation and allowing the industry to thrive and meet both domestic and international healthcare needs in the long run. 

Investments in R&D by medical solution providers are often limited by pricing pressures and cost constraints. How are companies adapting their R&D strategies to prioritize cost-effective innovations while maintaining quality?

At 3M India, we embrace a ‘Customer First’ mindset in our Research & Development efforts. This ensures that our innovations are closely aligned with customer needs and effectively address their pain points, including concerns related to cost. Over the years, we have complemented this approach by incorporating Health Economics into our New Product Introduction (NPI) process, ensuring that the economic impact of new solutions is well understood. 3M has introduced multiple groundbreaking innovations aimed at reducing overall healthcare costs while improving patient outcomes. A great example is our Tegaderm CHG dressings, which significantly reduce the risk of catheter-related bloodstream infections, which is an expensive and often fatal condition. It has always been our endeavor to promote best practices in infection control which can alleviate the economic burden on healthcare systems. 

Furthermore, by leveraging existing technologies and platforms in new applications, medical device companies like 3M can create cost-effective solutions. For instance, our recent launch of products for critical tube securement, an extension of our adhesive technology platform, offers yet another way to deliver impactful, cost-saving innovations to the healthcare sector.