The Indian government recently approved 100 percent foreign direct investment (FDI) in medical devices through automatic approval route. This move has been received with mixed reactions from domestic medical device manufacturers.

There is little doubt that the news of 100% government approval for FDI in the medical devices sector will indeed affect the Indian health care scenario greatly. According to Future Market Insights (FMI), “Manufacturers in the Indian medical devices industry are increasingly shifting towards importing and trading rather than investing in manufacturing; and with the introduction of this policy, domestic manufacturers might experience a further decline in revenue.”

Currently, India imports around 70% of medical devices used in the country. The ‘Make in India’ campaign has resulted in the government relaxing the FDI rules in order to attract investments and drive domestic manufacturing.

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