Whalesbook
India's medical technology sector is transforming significantly, moving from a market that relies heavily on imports to one that is globally competitive in manufacturing and innovation. This change, supported by government policies and growing demand at home and abroad, positions India for substantial growth in the next ten years. A joint report by Boston Consulting Group (BCG), the Association of Indian Medical Device Industry (AiMeD), and the Kalam Institute of Health Technology (KIHT) forecasts that India's med-tech market could grow from its current $16 billion to $41–44 billion by 2030. This marks a shift from primarily serving domestic needs to actively competing globally, boosted by 'Make in India' and 'Innovate in India' programs.
Shifting Gears for Global Reach
India's med-tech industry is strategically shifting from depending on imports to becoming a strong global competitor. Currently holding a small 1.5–2% share of the global medical device market, India aims to capture 10–12% within 25 years. Projections suggest the sector could reach $83–89 billion by 2035. Historically, multinational corporations dominated India's med-tech market with a 90% share in the 1960s. However, post the 'Make in India' program in 2014, it has gradually developed into a more independent sector. The market, valued at $2.02 billion in 2015, has seen rapid growth forecasts, with some expecting it to hit $50 billion by 2030, growing at about 16.4% annually.
Meeting Home Needs, Cutting Imports
The main driver for growth is meeting India's large domestic healthcare needs and replacing imported medical products. This segment, currently valued at $8 billion, is expected to reach $45–48 billion by 2035. Medical equipment and consumables are at the forefront, with in-vitro diagnostics (IVD) and other devices set to follow. This focus on the domestic market is crucial because India still imports 70-80% of its medical devices, especially high-end imaging systems and specialized equipment. This creates a significant chance for local manufacturers to fill the gap.
Growing Exports Worldwide
Alongside domestic demand, India is developing its export capacity to become a manufacturing hub for international markets like the US, EU, and developing nations. Exports, currently around $4 billion, are predicted to reach $16–18 billion by 2035. Key export areas include cardiac and orthopedic implants, IVD, and high-volume consumables. While the US and Germany are major export markets, India's imports are still nearly double its exports, resulting in a significant trade deficit.
Contract Manufacturing Opportunities
Contract manufacturing represents another key area for growth. Although still developing, it is expected to reach about $7 billion by 2035. This growth is driven by global supply chain adjustments, encouraging original equipment manufacturers (OEMs) to spread their production. The global medical device contract manufacturing market is substantial, valued at $84.61 billion in 2025 and projected to hit $214.33 billion by 2033, with Asia Pacific playing a significant role.
Government Support Fuels Growth
This rapid expansion is fueled by supportive government policies and investment. Key measures include the National Medical Devices Policy 2023, a ₹3,420 crore Production-Linked Incentive (PLI) scheme supporting 24 projects and 57 products, and four MedTech parks, led by the Andhra Pradesh MedTech Zone (AMTZ). Policies also allow 100% foreign direct investment (FDI) through automatic approval, drawing significant capital. In 2025, about ₹10,940 crore was invested across over 230 private equity, venture capital, and corporate deals. A dedicated MedTech fund, MedArtha, was launched by AMTZ in March 2026 to boost capital.
Investment and Innovation
Capital investment has increased significantly, with private equity and venture capital funding for Indian MedTech rising from $180 million in 2019 to $1.25 billion in 2025. This shows strong investor interest, though data indicates a dip in VC funding in 2025 compared to the year before. The innovation sector is growing but still lacks sufficient investment, suggesting a need for more capital to develop true 'Innovate in India' potential.
Challenges Ahead
Despite the positive outlook, India faces significant challenges. The country still relies heavily on importing advanced technological devices, impacting its trade balance as imports far exceed exports. Regulatory processes, such as product registration and approvals, can take up to two years, which may slow down innovation and market entry. While local manufacturing is growing, closing the technology gap in complex areas like imaging systems and specialized parts remains difficult. To compete globally, India needs more consistent regulatory standards that match international benchmarks to build trust. Additionally, while overall growth is positive, VC funding decreased in 2025, and the innovation sector is considered underfunded. This raises concerns about sustained investment in research and development and the creation of leading medtech companies.
Looking Ahead
The future of India's med-tech sector depends on ongoing policy support, continued R&D investment, and efforts to improve global quality standards and regulatory consistency. The combination of favorable government policies, a large domestic market, and a focus on exports provides a solid base. However, for the sector to become a true global medtech leader, it must shift from competing mainly on cost to producing high-quality, safe, and globally recognized medical technology.