MedTech Innovation: A Winning Formula in India
The Indian MedTech industry, which is the fourth largest in Asia and among the top 20 globally, has the potential to reach $50 Bn by 2025.
Companies specializing in Medical Technology (MedTech) are seeking to expand their operations in India, where the market is expanding rapidly. As a result, India is becoming one of the top three countries for direct investment by multinational MedTech firms.
How, then, would MedTech companies achieve long-term growth and leadership positions by expanding beyond metropolitan areas? Innovation of products, services, and business models is the solution.
Impact of Covid-19 on Medical Technology in India
Since Covid-19 posed an astoundingly significant threat to the nation's public health, the pandemic also contributed to the rise and prevalence of a multitude of new-age healthcare technology companies, many of which were founded during the pandemic. In addition to the increased foreign direct investment in the healthcare and health-tech sectors, a number of export companies are simultaneously developing cost-cutting healthcare innovative techniques with service and delivery footprints in India, conveying the message "Made in India".
As a result of Covid-19, telemedicine, and e-pharmacy are experiencing a renaissance, and Made-in-India and Made-for-India healthcare innovations have arrived to restructure our healthcare technology and device manufacturing ecosystem.
The Emergence of NIF as a Pre-Pandemic Phenomenon
The National Innovation Foundation (NIF) - India is a national initiative in India that seeks to promote technological innovations at the grassroots level and exceptional traditional knowledge. Its mission is to facilitate India's transformation into a creative and knowledge-based society by expanding the institutional and policy space for grassroots technological innovators. NIF identifies, supports, and incubates grassroots innovations developed by individuals and local communities in any technological field, thereby facilitating human survival in the absence of formal sector assistance. In addition, it works to ensure that such innovations are widely disseminated through commercial and/or non-commercial channels, generating material or non-material incentives for the innovators and other participants in the value chain.
An Overarching Concept of ‘Make-in-India’ Innovations
In March 2020, NITI Aayog issued one of the world's most forward-thinking telehealth regulations, which, when combined with the pandemic, has contributed to the exponential growth of telemedicine adoption. Additionally, the NITI Aayog's National Health Stack and the digital health mission, which aims to aggregate electronic medical records, will boost start-ups in a manner comparable to that of UPI and the India Stack for fintech.
In their earliest stages, the majority of MedTech startups face three obstacles. The initial step is to conduct and validate clinical trials. The government is the largest provider of healthcare in India. If the government could establish an organization to facilitate the early validation of MedTech devices and services, the development and deployment of various healthcare technologies could be accelerated significantly.
The challenge facing startups today is universal. Over 95% of startups fail, primarily due to a lack of initial customer acquisition. There must be a mechanism in place for the government to be an early investor in innovative products and services, as it is the largest provider of healthcare. Government procurement is based on L1 procurement, and no mechanism exists to procure "innovation." In addition, public procurement policies require "previous government orders" and a minimum of three bidders. There will always be a first time if a product is truly innovative, and three companies will not compete for an innovative product with intellectual property.
The central government has bolstered the "Make in India" initiative with a series of orders, including procurement from local manufacturers up to 200 crores and procurement via the Government e-marketplace (GEM). The majority of state government procurement does not currently prioritize "Made in India" State government procurement preferences for local manufacturers, on the other hand, will go a long way toward developing local manufacturing capacity, including the establishment of international manufacturing plants.
Atmanirbhar Bharat Approach
The Prime Minister's decision regarding Atmanirbhar Bharat (India's self-sufficiency) is precisely what our domestic manufacturing requires. By emphasizing "Make in India," a self-sufficient India would reduce the country's reliance on imports. Self-sufficiency entails increasing a nation's long-term competitiveness. The natural progression of any economy has been from an agricultural state to an industrialized nation to a service-based economy. Atmanirbhar Bharat can help us recover lost industrialization ground.
In the near future, AI will fundamentally transform healthcare. By reducing the price of the product or service, innovation in medical technology can be used to make modern healthcare accessible and affordable for all. This brings me to my third obligation. For the development of AI and its widespread adoption in healthcare, AI startups will need voluminous amounts of anonymized data. As the largest provider of healthcare, the public healthcare system generates the most data. To advance AI in healthcare, the government must therefore establish a platform for the distribution of anonymized data.
Conclusion
India has all the necessary ingredients for the exponential growth of HealthTech and MedTech, including a large population, a robust pharmaceutical and medical supply chain, 750 million smartphone users, the world's third-largest startup pool with easy access to venture capital funding, and innovative Tech entrepreneurs seeking to solve global healthcare problems. As a result, Indian startups will lead the next global wave of healthcare innovation.