Mumbai: 2022 was a significant year for Indian healthcare. Both revenue and investment grew in the industry. India continued its efforts to become self-sufficient and provide for the rest of the world in the year.
Due to rising numbers of non-communicable disease and the increasing global burden of these diseases, 2022 also saw a rise in demand for quality healthcare services. India’s growing population, increasing health awareness, health insurance penetration and preventive health becoming more important than ever the healthcare industry is poised to grow in the coming year.
GlobalData estimates that the Indian market for medical devices accounted for 42% of Asia-Pacific’s (APAC) market in 2021. This market is expected to grow at an average CAGR of around 8% through 2030, according to GlobalData. India’s diagnostics imaging market will grow at a CAGR exceeding 12 percent through 2030. India’s market for medical devices will grow largely because of the production of high-end diagnostic tools.
Setting stones for 2023
The Indian government has encouraged domestic manufacturing after the COVID-19 epidemic caused shortages of medical supplies. In 2022, the recovery of healthcare was supported by industry’s dedication to innovation and tech advances. This has been facilitated by placing patients at the center of care.
The economic downturn in many countries has severely limited the capacity of national health systems for growth. This makes it imperative for strengthening the health system to engage both the private and non profit sectors. Oommen Kurian, Head Health Initiative at Observer Research Foundation, stated that advanced technology and telegraphy will be used to overcome limitations and leapfrog shortfalls.
Sharing his views Rohit Anand, Medical Devices Analyst, GlobalData, commented, “India wants to become as self-sufficient as possible. In the 2022 year, domestic production was the most important focus area in the medical device field. This will continue in 2023. India’s manufacturing capabilities have seen significant development in the last few years. The impact of the new National Medical Devices Policy, which was introduced in 2022, has already begun to be felt. Under this scheme, Uttar Pradesh’s state government has taken steps to invite medical device makers. The indigenous manufacturing of high-end medical devices is expected to provide impetus to India’s aim of becoming a manufacturing hub. The key objective will be to bring down the cost of medical devices and to reduce import dependency.”
In 2022, medical device manufacturers saw new technology enter the market. These technologies included artificial intelligence (AI), 3D printer technology, and wearable medical equipment.
Anand further added, “AI is a game-changing technology that has the potential to detect diseases such as cancers in the early stages. AI could be used more often in non-invasive or minimally invasive surgical procedures. Medical devices that are supported by AR and VR will be able to visualize wounds in 3D. This will make it easier to replace high-risk procedures. In the coming years, 3D printing technology will be used extensively to produce artificial joints and implants. Robotically assisted surgical devices may see a rise in investment by medical device firms. This will allow for better precision in high risk surgeries. For better treatment outcomes and early diagnosis, both domestic and international medical device companies will invest more in newer technologies. This will allow them to gain market share, increase their economy, and possibly enable a paradigm shift for medical treatment.
The Indian healthcare sector is poised for global prominence as a medical tourism hub. This is due to the extensive vaccination program and the efforts of the industry to develop innovative ways to continue quality, safe healthcare delivery. The urgency to integrate technology was increased by the pandemic.
“The key to success for 2023 will depend on our capabilities to strengthen healthcare infrastructure, development of standalone cancer, cardiac and orthopaedic centres and greater collaboration with the government and academia to address the shortage of skilled workforce. The healthcare sector in India is a sunrise sector and will continue to remain the preferred market for the investor community,” shared, Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare and Senior Vice President, NATHEALTH.
2023 Driving factors
In 2023, new technology-based products are expected to be more popular. Medical device companies will continue to invest in Healthcare IT (HCIT) tools such as ‘The Internet of Medical Things’ and ‘Augmented Reality’ for remote patient monitoring, long-term condition monitoring, and medication tracking devices.
Sharing his views Kurian remarked, “Some of the key technology trends that are expected to have a significant impact on the industry include the use of artificial intelligence and machine learning, the rise of telemedicine and remote monitoring, and the increasing use of electronic health records and other health information technologies. These can be particularly useful for people living in remote or underserved areas, or for those who have difficulty accessing care due to physical or logistical barriers.”
“We may see investments in machine learning and artificial intelligence-aided medical devices in 2023 to improve diagnoses before a disease can cause irreversible damage. On the other hand, the COVID-19 pandemic has given rise to telemedicine/online consultations which will continue to see investments through existing and new players,” said Anand.
Today, India is moving closer to becoming a global manufacturing hub. It also has the potential to be a major exporter of medical products worldwide. This industry now has the needed impetus.
India assumes the G20 Presidency
The G20 nations represent 65 per cent of the world’s population, encompassing 85 per cent of the global GDP. It is expected that the Indian G20 presidency will use a holistic approach in order to address healthcare/medical issues and to help plan better global health policies. G20 member countries account for 75% of global trade. Expect the new presidency to promote multilateral trade policies between the G20 countries, which will likely facilitate collaborations among industries among partner nations.
In view of India’s G20 Presidency, digital health innovation, achieving universal health coverage, and improving healthcare infrastructure and delivery will continue to be the key driving factors in 2023.
“This vision rests on the premise of precision and preventive care, especially as we look at innovation to lead the sector’s growth. Precision is crucial for digital acceleration and fighting the NCD burden. Moreover, the sector growth map of 2023 rests on our abilities to achieve the digital transformation in healthcare, accelerate investments in new technologies and R&D, address the NCDs burden, create favourable policies that can help reduce import dependence, and stronger partnerships between the Govt, industry and academia,” observed, Dr Shravan Subramanyam, President, NATHEALTH and Managing Director, Wipro GE Healthcare.
“Starting with Indonesia in 2022 and followed by India in 2023, developing nations would be holding the G20 presidency continuously for four years, till South Africa in 2025. A new global consensus is needed to ensure that the world ends at least two of three PHEICs, and prevent future pandemics in the midst of economic crises across many countries. Hopefully, India, Brazil and South Africa will leverage their global leadership role to move beyond the status quo towards innovative and ambitious solutions,” voiced Kurian.
“Such partnerships would facilitate the exchange of intellectual properties among the G20-nations and support domestic manufacturing of medical devices. India is still the most promising country among the G20 nations for low-cost medical equipment manufacturing. Proactive policies of the Government of India, like the ‘Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices’ has facilitated domestic manufacturing of low-cost medical equipment. With the availability of affordable medical devices, India will provide better healthcare to people with all socio-economic backgrounds,” echoed Anand.
“The domestic medical manufacturing industry should collaborate with international players for technology support, backing low-cost manufacturing in India. In order to foster the development of indigenous healthcare technology, the medical devices industry should work with academics. Indian industry players should be involved in active academic-industry partnerships, following the lead of Japan and other countries that have such partnerships to promote the development of new diagnostics for neurological disorders. As a lead manufacturer of affordable medical devices, India would ensure better healthcare for its people and other low-income countries that will benefit from the export of low-cost devices safeguarding equitable access to healthcare products,” concluded Anand.
Kurian believes that the disruption of the pandemic as well as the weaknesses of traditional solutions could make it possible for the new year to also see a new industry leadership with a greater focus on collaboration, equity, inclusion and access rather than just profit margins.
Medical devices should be able to provide affordable, personalized, and accessible diagnostic/medical solutions. India is a potential destination for affordable medical devices because of its skilled workforce and favorable government policies.