Kerala is increasingly positioning itself as an emerging medtech hub. What are the key ecosystem gaps KMTC is working to address in order to strengthen the state’s appeal for medical device innovation and manufacturing?
I think the first and most important gap is the lack of knowledge about the medtech industry among almost every stakeholder group. We are talking about businesses, government bodies, research institutions, academic institutions, start-ups, funding agencies and even the media.
I do not think there is enough awareness in the country about the medtech industry and its potential. So, that is the first gap we want to address.
The second gap is infrastructure. If you want to manufacture high-quality medical devices for the global market, you need the required infrastructure for testing, design, prototyping, validation, sterilisation and packaging. These facilities are fairly expensive, and this is where the government has an important role to play. That is the second gap we are trying to address.
The third aspect is visibility. We already have a thriving medical device industry in the state, but very few people know about it within Kerala, across India or globally. So, promoting awareness about Kerala’s medtech industry and what it has to offer through major conferences and events is another key focus area for us. These are the main things we are working on.
Kerala has often been discussed in the context of developing medtech clusters similar to established ecosystems like AMTZ. How do you assess the state’s current progress in building dedicated medtech clusters?
When you say medtech zone, the medtech industry actually works in what are called clusters. While AMTZ calls itself a cluster, I am not entirely sure whether it fully conforms to that definition, although it is probably the closest example we have in India. We believe that Trivandrum is actually the closest to becoming a medtech cluster, though it is not quite there yet. We have identified five potential clusters in Kerala, and there is still work to be done on them.
These locations already have something close to a critical mass of research institutions, teaching hospitals, universities and medtech companies in the same ecosystem.
Our intention is to develop these clusters into well connected and networked systems, enabling a free flow of not just information, but also people, between the different stakeholder groups.
How critical do you see public-private collaboration in accelerating medtech innovation and start-up growth in India, particularly in a sector as capital and infrastructure intensive as medical devices?
I think it is crucial, and we have not seen enough of it yet. KMTC itself is a good example of an organisation in the government sector working very closely with both the private and public sectors.
We collaborate with government hospitals and private hospitals, with government universities and private universities, as well as with public sector units and private medtech companies.
The intention is to bring all of them together, irrespective of whether they belong to the public or private sector.
The reason public-private partnership is necessary is because all the required resources are not available within any one sector. Some resources are available in the public sector, while others are in the private sector. If we can combine these resources effectively, I believe we will see strong results.
Despite the growth of India’s medical device industry, import dependence remains a significant challenge. Which segments continue to rely heavily on imports, according to you?
We are still heavily dependent on imports. It is estimated that nearly 75 per cent of our consumption remains import dependent.
If you look at Class B, C and D devices — the higher-risk, more sophisticated and critical devices — many of them are still imported.
In the context of ongoing geopolitical uncertainties and global supply chain disruptions, what strategic measures should India prioritise to strengthen self-reliance in medtech manufacturing?
The positive side of such a crisis is that it will force both businesses and governments to finally do what they should have done decades ago. India has everything needed to succeed in medtech.
We have the people, the technology, the research institutions and the industrial capability to manufacture, I would say, nearly 95 per cent of medtech devices.
If more large business groups become aware of the opportunities in the medtech industry, we will very soon see a significant spurt in growth.
From an industry development perspective, how can dedicated medtech clusters and shared infrastructure facilities reduce entry barriers for start-ups and emerging companies?
One of the biggest costs for a medtech company lies in the early stages of design, development, testing and clinical trials. This is different from most other industries.
Large companies can manage these costs because they have the necessary resources. However, for startups, it becomes extremely expensive, and they simply cannot afford to build all these facilities on their own.
This is where shared infrastructure becomes important. Companies can pay only for using the facilities, making it a revenue expense rather than a capital investment. The areas where such common facilities are most needed include design, development, prototyping, validation and sterilisation. If these facilities can be made accessible, I believe the medtech industry will really take off.
Looking ahead, which medtech segments do you believe hold the strongest growth potential for Kerala over the next few years?
We have identified three broad segments. The first is rubber based medical devices. Within this category, we see strong opportunities in urology products such as urine drainage bags, Foley catheters, different types of urinary catheters and related devices.
The second major segment is medical electronics. Kerala already derives a significant portion of its medtech revenue from medical electronics, and we believe the design of medical electronic devices could become a niche strength for the state. Specific components and PCB assembly could also emerge as areas where Kerala can excel.
The third segment, which we believe is vital, is assistive technology. Personally, I think this could become the biggest sector of all.
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