India’s MedTech transformation: paving the path to global leadership

India's MedTech industry is transforming from import reliance to a global hub, driven by innovation, digital integration, and government initiatives.

In brief

• The Indian MedTech market, valued at US$12 billion in 2023-24, is projected to reach US$50 billion by 2030, with India's global market share set to grow from 1.65% to 10%-12% over the next 25 years.
• Indian MedTech exports reached US$3.8 billion in 2023-24, with the US as the primary market.
• Despite strong exports, India remains heavily import-dependent, with US$8.2 billion in imports, and 80% to 85% of medical devices sourced internationally.
• With strategic growth and innovation, India is well-positioned to strengthen its MedTech industry and reduce import dependency, making significant strides toward becoming a global leader in the sector.

The Indian medical device industry is positioning itself to evolve from import dependency to becoming a potential global MedTech hub. With breakthrough innovations and a strong focus on digital integration, the MedTech market India is poised to revolutionize healthcare delivery. Our comprehensive analysis of India’s MedTech industry in 'India’s MedTech industry: The renaissance of a sector' reveals a sector on the cusp of transformation.

Key highlights from the Indian MedTech industry are:

Market growth

The Indian MedTech market size, currently valued at US$12 billion in 2023-24, is projected to reach US$50 billion by 2030. The global market share of the medical device industry in India is expected to grow from the current 1.65% to 10%-12% within 25 years.

Trade balance
The Indian MedTech export reached US$3.8 billion in 2023-24, with the US as the primary market. However, Indian MedTech import figures dominate at US$8.2 billion, with 80% to 85% of medical devices in India sourced internationally.

Industry composition

The Indian medical device market is segmented into five key areas: electronic equipment (56% share), disposables & consumables (26.5%), in-vitro diagnostics (8.1%), implants (7.1%), and surgical instruments (2.3%).

Socioeconomic factors and evolving ecosystem are unlocking India MedTech's next growth wave

Rising income levels, expanding healthcare insurance coverage, and growing medical tourism are creating parallel demand streams for both affordable and innovative medical devices. Infrastructure development in Tier 2 and 3 towns is opening new markets through an increase in PM Jay insurance coverage outreach, digital platforms like ABDM and innovative approaches like differential pricing models. 

Industry experts see the US$50 billion MedTech target for 2030 as achievable, emphasizing the need for infrastructure and system upgrades to drive growth.

Increasing government focus

• Regulatory reforms (e.g., Medical Device Rules and National Medical Device Policy) 
• Infrastructure development (e.g., PLI scheme, promotion of medical device parks scheme)
• R&D promotion (e.g., MedTech Mitra and PRIP scheme) is driving growth in the sector

From import dependency to becoming a global hub 

Local companies are targeting import-dependent segments and price-sensitive markets, while global MNCs focus on localization and digital innovation. This strategic shift, coupled with local pharmaceutical companies entering medical device manufacturing in India, marks a significant transformation. Together, these efforts are driving India’s rise as a global MedTech powerhouse.

Innovation powering the next wave of MedTech breakthroughs

Leading MedTech companies and Indian medical device start-ups are driving innovation across segments with a focus on four key themes: improved safety, enhanced efficacy, increased accessibility / affordability, and optimized efficiency. MedTech innovation in India, supported by robust medical device R&D in India, remains at the core of these advancements, driving the industry forward.

Five key priorities for the future of India’s MedTech industry

Experts reveal a strategic roadmap for transforming the Indian MedTech industry. Government initiatives for MedTech India focus on manufacturing competitiveness and quality excellence. Strengthening supply chain resilience and embracing value-driven market access strategies are equally critical. Manufacturing competitiveness stands at the forefront, supported by an unwavering focus on quality excellence. The industry must simultaneously strengthen supply chain resilience while embracing value-driven market access strategies. Perhaps most crucially, leveraging India's IT prowess presents an unprecedented opportunity to lead in digital innovation.