India is steadily carving its place on the global map as a key player in the MedTech manufacturing industry. With the medical devices sector currently valued at approximately $14 billion and projected to more than double to $30 billion by 2030, the country is witnessing a significant transformation. As the fourth largest medical devices market in Asia—after Japan, China, and South Korea—India has also secured its position among the top 20 global medical device markets. Notably, exports from this sector have surpassed the $4-billion mark, underscoring its growing influence worldwide.
What’s fueling this surge is not just the competitive cost advantage and expanding domestic market, but also a deliberate and strategic push from the Indian government. Initiatives like ‘Make in India’ and ‘Aatmanirbhar Bharat’ have laid a solid foundation to support the MedTech industry, positioning India as a reliable source of high-quality and affordable medical technology.
At the heart of this rise lies a powerful combination of factors. India boasts a vast healthcare ecosystem, a highly skilled and cost-efficient workforce, and an increasing number of research and development centres. As healthcare infrastructure across the country continues to improve, and medical tourism gains further momentum, global investors are taking note. In fact, more than 250 start-ups across the country are actively contributing to MedTech innovation, creating solutions that address both local and global healthcare needs.
The product spectrum within India’s MedTech sector is broad. From in-vitro diagnostic (IVD) equipment and orthopedic devices to homecare gadgets and hospital-grade laboratory machines, the range reflects the industry’s diversity and potential. Approximately 800 domestic manufacturers are currently active, supporting the steady 15% annual growth the sector has seen in recent years. With this pace, India is poised to command up to 12% of the global MedTech market share within the next two decades.
Government support has been pivotal in this journey. The Production-Linked Incentive (PLI) Scheme for medical devices is one such flagship programme. With a budget of ₹3,420 crore, the scheme aims to boost domestic manufacturing of high-end medical equipment—like MRI machines, CT scanners, and radiotherapy devices—that were traditionally imported. Nineteen greenfield projects are already underway, and production of 44 critical medical products has commenced under this initiative.
Beyond the PLI Scheme, other supportive measures such as the Assistance to Medical Device Clusters for Common Facilities (AMD-CF) and the ₹15,000 crore pharmaceutical production incentive scheme have played instrumental roles. These efforts aim to strengthen domestic capacity by supporting shared infrastructure, logistics, and advanced testing laboratories.
The National Medical Devices Policy, introduced in 2023, is another key milestone. Its objective is to make India less dependent on imports and build a globally competitive, innovation-driven MedTech ecosystem with a projected market value of $50 billion by the end of the decade. It advocates for single-window clearances, streamlined licensing, and enhanced pricing transparency through a stronger role for the National Pharmaceutical Pricing Authority.
Medical Device Parks are also central to this vision. Designed to lower manufacturing costs and enhance efficiency, these parks are being developed in states like Tamil Nadu, Madhya Pradesh, Uttar Pradesh, and Himachal Pradesh. Andhra Pradesh MedTech Zone Ltd. (AMTZ), regarded as the world’s largest MedTech manufacturing cluster, serves as a beacon of this progress. Housing over 150 companies, AMTZ offers state-of-the-art facilities that support production ranging from basic protective equipment to sophisticated devices like pacemakers and cyclotrons.
India’s commitment to innovation extends well beyond manufacturing. The government’s 2023 National Policy on Research and Development and Innovation in the Pharma-MedTech Sector seeks to nurture an ecosystem that promotes breakthrough research and development. The Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) Scheme, backed by ₹5,000 crore, supports the creation of Centres of Excellence across premier institutions like IIT-BHU and the National Institutes of Pharmaceutical Education and Research (NIPERs). This structured effort is helping shape the next generation of MedTech breakthroughs.
Foreign investments have added significant momentum. In the first nine months of 2023 alone, the MedTech sector attracted over $460 million in FDI. Cumulatively, from 2000 to late 2024, foreign direct investments in the medical and surgical appliances sector touched nearly $4 billion. Global giants such as Medtronic, Omron Healthcare, and Siemens Healthineers have announced major projects in India, ranging from R&D centres to full-fledged production facilities.
India’s pro-investor policies make it an attractive destination for international players. With 100% FDI allowed under the automatic route, coupled with tax exemptions and profit deductions for local manufacturers, the government is removing barriers and fostering a business-friendly environment that encourages long-term growth.
The journey toward becoming a global MedTech hub is already well underway. In March 2024, 13 greenfield manufacturing sites were inaugurated, and 138 medical products have been approved under the PLI scheme for production. Although India still imports nearly 70–80% of its medical devices, this scenario is rapidly evolving. The convergence of government policy, entrepreneurial spirit, and international investment is pushing the country toward self-reliance and global leadership in MedTech manufacturing.
With the right policies in place and a clear commitment to innovation and infrastructure, India is not just catching up with global leaders—it’s positioning itself to set new standards in MedTech manufacturing worldwide.