New Delhi [India], August 29 (ANI): The domestic medical technology (MedTech) sector is projected to grow three times of the global growth, according to a report by Confederation of Indian Industry (CII), in collaboration with Boston Consulting Group (BCG).

Valued at approximately USD 16 billion, India's MedTech industry currently accounts for only around 2 per cent of the approximately USD 680 billion global market, as per the report.

With the government's Viksit Bharat 2047 vision, the sector has been identified as a strategic pillar in the 'Make in India' agenda, with aspirations to reduce import dependency to below 50 per cent and increase India's share of the global market to 10-12 per cent.

The report notes that India has made significant strides in building MedTech manufacturing capacity.

The report added that the development of four MedTech parks, led by Andhra Pradesh MedTech Zone (AMTZ), is the most advanced.

As per the report, financial incentives such as the Production-Linked Incentive (PLI) scheme and state-level tax benefits have helped the sector.

India has boosted R&D infrastructure with government grants and 100 per cent FDI under the automatic route, attracting USD 3.9 billion Foreign Direct Investment (FDI) by December 2024.

Upskilling initiatives through institutions like NIPER to develop MedTech talent and rising private investments from both domestic players and global MNCs is reducing import reliance from 80 per cent in FY2022 to 60 per cent in FY2024.

Despite this progress, the report identifies key challenges to achieving manufacturing excellence: gaps in the ecosystem for high-end devices, regulatory complexity, shortage of skilled manpower, under-utilisation of MedTech parks, and limited MSME participation in incentive schemes.

To address these, the CII-BCG report outlines nine strategic initiatives to drive the next phase of growth. These include fine-tuning the PLI scheme for MSME participation. It suggests rationalisation of import duties and duty exemptions for critical raw materials. The report suggests developing a raw material ecosystem.

Among other suggestions, attracting MNC manufacturing and R&D, unlocking the potential of MedTech parks through co-innovation labs and shared foundries, aligning regulatory requirements with global standards to accelerate exports, are prominent. (ANI)