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Sustainability is rapidly emerging as a procurement differentiator across global health systems, particularly in Europe and the US. Several Indian MedTech companies are already responding by incorporating biodegradable materials such as PLA-based polymers, reducing secondary packaging, and investing in solar-powered production facilities, said Anish Bafna, CEO & MD, Healthium Medtech.
We are also seeing modular product design gaining ground, allowing partial reuse, repair or dis-assembly to reduce waste. Buyers are increasingly prioritizing suppliers that align with circular economic principles, reduced plastic usage and energy-efficient production, he added.
For Indian manufacturers, especially those operating in single-use product categories, this shift presents both a challenge and an opportunity. In some cases, manufacturers are piloting take-back programs for high-burden disposables in collaboration with private hospitals, said Bafna.
Green certifications like ISO 14001, GreenCo, and LEED are becoming necessary to participate in global tenders, particularly in the EU. This sustainability pivot also aligns with India's broader ESG goals and enhances export competitiveness. Looking ahead, multi-stakeholder collaboration involving industry bodies, research institutes and regulators will be essential to scale climate-conscious innovations without compromising safety or quality, Bafna told Pharmabiz.
Globally, the healthcare procurement landscape is evolving with a sharp focus on cost control and supply continuity. This is particularly true in categories like sutures, infection prevention products and surgical consumables where demand is high and margins are thin. Health systems are shifting towards long-term sourcing contracts, centralized procurement and bundled product offerings to reduce costs and manage risk, he noted.
In India, this shift is further influenced by the indirect tax structure. While essential implants are taxed at a concessional 5% GST rate, most surgical consumables including gauze, gloves and drapes attract 12- 18% GST. This leaves limited pricing flexibility for suppliers, especially in public procurement. With healthcare inflation projected to reach 13% in 2025, hospitals are under pressure to deliver value without compromising quality, pointed out Bafna.
Adopting sustainable procurement methods to minimize environmental impact and favour ethical suppliers. To this end sustainability in MedTech is no longer an optional add-on–it is becoming a core design and manufacturing viewpoint. “Manufacturers today must rethink product portfolios with a focus on standardization, supply efficiency and digital procurement integration, he said.
Tiered pricing, localization of supply chains and backward integration are helping mitigate input cost volatility. Procurement strategies that were once reactive are now becoming proactive and the industry’s ability to meet cost and resilience expectations will define its long-term viability, said Bafna.
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