Japan’s Strategic Medtech Alignment with India: A Growing Partnership

Japan’s strategic alignment with India in the medical technology (medtech) sector is gaining momentum. With an aging population and increasing chronic disease prevalence, Japan’s medical device market is projected to grow from $21.44 billion in 2024 to $45.2 billion by 2035. However, the domestic market has its limits, prompting Japanese companies to seek global expansion, with India emerging as a key partner.

Japan boasts high medical standards and advanced manufacturing capabilities, making it a global leader in medtech. However, the demand within Japan alone is not sufficient to sustain long-term growth. The International Monetary Fund (IMF) predicts that India will surpass Japan to become the fourth-largest economy by 2025, making it an attractive market for Japanese medtech companies.

India’s healthcare landscape is rapidly evolving, driven by rising bilateral confidence and a growing demand for innovation. As of 2024, over 1,450 Japanese companies operate in India, with the medtech sector occupying a growing segment. Notable players like Terumo, Olympus, Nipro, and Canon are establishing a strong presence in the Indian market.

In 2021, the Japan Medical Device Association in India (JMDAI) was formed under the Japan Chamber of Commerce and Industry in India (JCCII). This platform facilitates mutually beneficial interactions and shapes the regulatory and procurement framework. JMDAI also promotes Japanese quality products in India, enhancing business opportunities.

Ashish Behera, Strategy Manager at Accenture, notes that Japanese players have adopted a cautious growth strategy in India, focusing on importing and selling models. However, the Indian market is transitioning from standalone devices to connected care services. Japanese companies will need to rethink their digital transformation strategies to bundle new services with existing devices, leveraging their superior service quality.

Naoshi Kikumoto, Managing Director of Olympus India, emphasizes the importance of training and education in the company’s growth strategy. Olympus invests in training clinicians and technicians, improving product and service propositions. The company’s strategic priorities include innovation, patient safety, and productivity to drive growth in the global medtech industry.

Shishir Agarwal, President and Managing Director of Terumo India, highlights the company’s focus on advancing patient care, strengthening partnerships, and building future-ready capabilities. Terumo aims to deliver integrated healthcare solutions, combining devices, digital tools, and clinical education. This approach extends beyond the device, incorporating interconnected technologies and data-informed insights.

Milind Pappu, Director of Nipro Medical India, emphasizes skill development in the clinical domain, along with digitalization, regenerative medicine, and infection control. These focus areas are crucial for strengthening the company’s presence in India.

The integration of advanced technologies such as AI, robotics, and virtual reality is expected to further shape the Japanese medtech industry’s growth in India. The Japanese government has advanced AI technology through initiatives like the Society 5.0 framework, which envisions a human-centered society powered by AI and other advanced technologies.

Recent developments include Olympus launching its first AI-powered clinical decision tool, Terumo Corporation introducing AI-based FFR software, and Omron partnering with Tricog to launch an AI-based cardiac care platform. These investments are aimed at developing new solutions for both domestic and global markets.

Naoshi Kikumoto believes that the convergence of AI, robotics, and personalized care will revolutionize the medtech sector, leading to enhanced diagnostic accuracy, precision surgeries, proactive patient management, and improved access to healthcare. Shishir Agarwal adds that in a nation like India, characterized by a large population and significant healthcare inequalities, the integration of AI and robotics can help close essential gaps in access, affordability, and quality of care.

Collaborative efforts by both India and Japan can address common healthcare challenges such as workforce shortages, an aging population, and regional disparities. This requires the collective support of all stakeholders, including the government, industry, startups, academia, and suppliers from both countries.

Some recent investments and strategies by Japanese medtech companies in India include Terumo advancing its India Skill Lab (TISL) with advanced simulation models, Omron investing Rs 128 crore to establish its first India-based facility in Chennai, and Olympus Corporation announcing the establishment of a Research & Development (R&D) Offshore Development Centre (ODC) in Hyderabad.