India’s medical devices industry is witnessing a transformative surge under the ambit of the Make-in-India initiative, leveraging policy support and burgeoning domestic demand to position itself as a global manufacturing hub. Backed by strong official data, the sector's growth trajectory is robust, underpinned by strong government backing and ambitious market expansion.
Market Growth and Strategic Importance
The Indian medical devices market, valued at around ₹1,02,660 crore (USD 12 billion) in FY 2023-24, has surged to an estimated USD 16.5–17 billion by FY 25-26, expanding at an approximate 15% CAGR in recent years. This considerable growth is fueled by increased healthcare infrastructure, rising healthcare expenditure, and a strategic emphasis on local manufacturing.
The sector is a vital cog in India’s healthcare ecosystem, anticipated to reach a staggering ₹4,33,150 crore (USD 50 billion) by 2030, underlining its growing economic and industrial significance.
Make-in-India: A Catalyst for Domestic Manufacturing and Innovation
The Make-in-India campaign has revolutionised the manufacturing landscape for medical devices. India’s traditional reliance on imports for 70–80% of devices, especially critical advanced imaging and implantable devices, is gradually diminishing. The government’s Production Linked Incentive (PLI) scheme, launched with an outlay of ₹3,420 crore for the scheme tenure extending roughly from FY 2020–21 to FY 2027–28, incentivises the domestic production of high-end devices such as MRI, CT scan machines, linear accelerators, and ultrasounds, which were the categories predominantly imported until recently.
Dedicated medical device parks, like the Andhra Pradesh MedTech Zone (AMTZ), the world’s largest medical device manufacturing hub, exemplify the infrastructure push under this initiative, offering shared manufacturing, R&D, and testing facilities that reduce costs and foster innovation. Such clusters across Gujarat, Maharashtra, Karnataka, and Tamil Nadu are central to fostering economies of scale and efficient supply chains.
Export Growth and Global Competitiveness
India’s medical devices exports have markedly increased, touching nearly USD 4 billion by H1 FY2025-26. This represents an 88% growth in six years, driven by government-backed export promotion councils and policies focused on scaling manufacturing capabilities and improving quality standards. While import dependence remains a challenge, enhanced domestic manufacturing capacities and export growth are positioning India as a competitive global MedTech supplier. India currently accounts for less than 1.5% of the ~USD 550–680 billion global medical devices market, underscoring significant growth opportunities for investors and consultants.
Innovation and Skill Development
Complementing manufacturing growth, Make-in-India supports a vibrant innovation ecosystem through schemes like the Promotion of Research and Innovation in Pharma-MedTech Sector (PRIP) and clinical study facilitation programs. Skill development initiatives are strengthening the workforce, enabling the sector to innovate in complex devices and digital health technologies, thereby enhancing India’s future role in global medical technology.
Strategic Impact: Import Substitution and Healthcare Access
A critical outcome of Make-in-India’s momentum is the gradual reduction in import dependency, currently between 70-80%. Increasing indigenous production lowers costs, alleviates supply chain vulnerabilities, supports affordable healthcare delivery, and reduces India’s exposure to global trade shocks and geopolitical risks.
Policy and Investment Support
The government’s strategic commitment is evident through several policy measures and investments. Since April 2000, FDI inflows in medical devices and surgical appliances have totalled over ₹33,000 crore (USD 3.9 billion), bolstered by 100% FDI allowance. The Union Budget 2025-26 allocated ₹99,858 crore (USD 11.48 billion) to healthcare, facilitating continued growth.
Further, a dedicated ₹500 crore (USD 59 million) Scheme for Strengthening of Medical Devices Industry (SMDI), scheme aims to boost manufacturing of key components, skill upgrades, clinical testing infrastructure, and industry promotion.
Make-in-India is far more than a slogan for the medical devices sector; it is a game-changer, positioning India as a global MedTech hub. Through focused government support, strategic investments, manufacturing cluster development, export emphasis, and innovation facilitation, India is charting a course toward self-reliance, global competitiveness, and improved healthcare access.
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