AI, IT solutions in healthcare are welcome, but more core med-tech innovations necessary, say experts

India is the largest producer of vaccines and the largest manufacturer and exporter of generic drugs, but when it comes to Med-tech we still have very high import dependency with around 80% of med-tech consumed in India being imported

Updated - September 14, 2024 05:06 pm IST - Bengaluru

India, particularly Bengaluru, has a thriving start-up ecosystem with many of the young ventures focused on innovations in the med-tech sector.

India, particularly Bengaluru, has a thriving start-up ecosystem with many of the young ventures focused on innovations in the med-tech sector. | Photo Credit: Aishwarya lakshmi

In the first week of September, the number of dengue cases this year crossed the 25,000 mark in Karnataka, setting the record of the highest ever. With 12 deaths so far, the government has declared it an epidemic.  

While dengue cases have been becoming increasingly common across various parts of the country, we still don’t have a single medicine to treat it, says Nagesh R., medical director at Kauvery Hospitals, who was speaking at the recently-concluded CII Innoverge 2024 in Bengaluru. 

Vishal Bali, N. Venu, and Mr. Darshan H.V.

Vishal Bali, N. Venu, and Mr. Darshan H.V. | Photo Credit: SPECIAL ARRANGEMENT

“We are just giving symptomatic or supportive treatment. Similarly, there are so many communicable and vector-borne diseases in India, but we lack medications for many of them. We are following Western studies for non-communicable diseases. The government must step up and support research institutions to develop new medications,” Dr. Nagesh said, while speaking as part of a panel discussion where several experts pointed to the importance of technology in ensuring healthcare access across India and the need for more government support to promote research and medial solutions that cater to local needs.

Missing in core capabilities

India, particularly Bengaluru, has a thriving start-up ecosystem with many new ventures focused on innovations in the med-tech sector.  

However, the innovation in the sector has been driven by AI and IT interventions instead of innovation in core equipment, points out Aruna Nayak – Managing Director, Getinge Medical.

“We do a lot of interactions with start-ups. In India, the start-ups tend to focus on the IT or AI part. When it comes to core capabilities of medtech - the clinical and engineering aspects of it, the equipment or the hardware part - we have a journey to go,” she said during the discussion.

Pharmacy of the world 

Known as the pharmacy of the world, India is the largest producer of vaccines and the largest manufacturer and exporter of generic drugs. According to 2023 figures, India accounts for more than 60% of global vaccine production. 

However, when it comes to Med-tech we still have very high import dependency with around 80% of med-tech consumed in India being imported, Ms. Nayak pointed out. She expressed optimism though, about the growth in the number of domestic med-tech companies in the last few years. 

“Post Covid, thanks to the PLI (Product Linked Incentive) scheme, we have seen the number of companies in med-tech really grow multifold. Pre--pandemic there used to be about 50 med-tech companies of all sizes and shapes. Now, there are nearly 1000. That’s an impressive jump and we are at a tipping point in med tech,” she said.  

Earlier this year in March, the central government announced 13 Greenfield Manufacturing Plants for Medical Devices under the PLI Scheme with a total financial outlay of ₹3,420 Crore till 2027-28. 

According to Ms. Nayak, multinational companies are increasingly looking at products designed in India for local needs and requirements while also employing local talent for their global requirements through Global Capability Centres. She also hoped that a future where we see med-tech exports from India, similar to what we have seen in pharma and vaccines, is not far away.  

Government support

Noting that research has been the backbone of medical and healthcare transformations across the world, Dr. Nagesh further stressed on the importance of collaboration between various research institutes. 

“We are yet to see groundbreaking innovations in med-tech that can be practically used. For example, we are still significantly dependent on the U.S. and other Western countries for medical equipment such as scanning machines... A bridging has to happen between institutions where biomedical engineering and clinical research are happening, for example between IITs and AIIMS.” 

Noting that there are major developments happening in genomics and biochemistry that would determine the future of healthcare, he underlined the importance of collaborative efforts and government support for the advancements of the same.  

“The government should give grants and subsidies whenever there is research happening in institutes like NIMHANS or AIIMS. IISc is coming up with a medical school where they are introducing subjects on how to do research methodology and other similar subjects. It’s a welcome step,” he said. 

Priority required

Ms. Nayak seconded this and noted that the government can do a lot to influence the rapid growth of med-tech in India by allowing single window clearances and prioritising the med-tech sector under the PLI scheme. 

“Most medical devices need batteries. There is a PLI scheme for batteries. But the med-tech sector isn’t a priority sector for battery manufacturers as we sell in thousands and not in millions,” she pointed out. 

She suggested a better integrated PLI scheme that would mandate industries like batteries, sensors and other electronics to support med-tech as a priority segment. The import dependency would come down only when the whole ecosystem evolves, she said. 

She also pointed out that currently, med-tech comes under various ministries including health, IT, pharmaceuticals and so on, leading to a host of regulatory processes, and hence, a single window clearance would help.  

“Having Indian standards for med-tech devices is required. The government can take thought leadership on that,” she further suggested.  

The role of technology

Despite the advancements in healthcare infrastructure, it is no secret that most of it serves the urban Indian population. Healthcare access is still limited in many rural areas and technology is extremely important in overcoming this big divide, said Vishal Bali, Executive Chairman Asia Healthcare Holdings. 

Speaking at the CII event, he underlined the importance of technologies like telehealth, electronic medical records, data analytics, preventive digital healthcare and AI. 

“There is a lot that can be done and practised to change the massive demand-supply gap that exists in Indian healthcare. The gap is so wide that in order to meet WHO standards - both on the infrastructure side and on the people side - we will need at least another three decades.” 

“The number of beds required for our population is so significantly high that you cannot afford to match it in quick succession of time. Therefore, using technology to bridge this gap is probably the only way while we continue to build more healthcare infrastructure,” he said

Karthik Rajagopal, COO at Manipal Hospitals, added to this noting that there has been an increased adoption of technology in hospitals due to demand from the consumer side as well.

Leading innovation

During the launch of the Karnataka Biotechnology Policy 2024-2029 in the first week of September, IT/BT Minister Priyank Kharge set the ambitious goal of achieving a USD 100 billion bioeconomy by 2030. The state’s bioeconomy is currently close to US 31 billion. 

“We are not just the IT capital, we are also the BT (biotechnology) capital,” says Darshan H.V., IAS, Managing Director at Karnataka Innovation & Technology Society, Government of Karnataka. Speaking at the event he noted that Karnataka, which is currently home to about 200 med-tech start-ups, was the first state in the country to introduce a biotech policy. 

“Last year we added about 17 start-ups working in different areas of biotechnology, related interdisciplinary approaches and solutions. Bengaluru is currently home to more that 200 med-tech start-ups driving advancement in various sectors such as diagnostics, medical devices, AI-driven healthcare solutions and so on. 

“Quality education and healthcare should be accessible to every person. To ensure that, technology is the only way forward,” he said. 

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