Witnessing unprecedented growth, India aims to become a global medical device manufacturing powerhouse. India’s medical device industry is focusing on transforming from an import dependant sector to a self-reliant manufacturing hub. The goal of India’s medtech industry is not just to cater to its own demands but also to export devices.

India’s medtech industry’s exponential growth

The Indian medtech market is currently valued at USD 12 billion and is expected to reach USD 50 billion by 2030. Its market share is expected to grow from the current 1.65% to 10-12% in the next 25 years. Notably, India’s medtech industry’s export value reached $3.8 billion in the period 2023 to 2024. Hence, India’s medical device industry is poised to have an impactful global footprint.

5 key drivers of India’s medtech industry growth

1. Increase in demand: Increase in disposable income, medical tourism, improved healthcare system, and expanded healthcare insurance coverage are driving demand for medical devices in India. This is fuelling the need to manufacture cost-effective and innovative medical devices.
2. Technological advancement and digital integration: Affordable and effective medical devices are in high demand in India. Hence, innovative technologically advanced medical devices having improved diagnostic accuracy that are cost-effective are being manufactured in India. Furthermore, AI and data analytics are being used to improve diagnostic accuracy and efficiency of medical devices. Moreover, new medical devices produced by domestic manufacturers feature digital components making them in demand products.
3. Change in manufacturing dynamics: There has been a strategic shift in the medical device manufacturing dynamics. Global companies are focussing on localization and digital innovation. Furthermore, Indian pharmaceutical companies are venturing into medical device manufacturing to support the domestic industry.
4. Supportive government polices: MedTech Mitra, PLI, and PRIP schemes are being implemented to boost domestic medical device manufacturing. National Medical Device Policy and Medical Device Rules are supportive medical device policies that have been formulated by the Indian government.
5. Focus on safety and affordability: Affordability, accessibility, safety, quality, and efficacy are primary focuses of domestic medical device manufacturers. The major portion of Indian population still cannot access quality healthcare owing to affordability and accessibility issues. To cater to the larger Indian population, domestic manufacturers will have to give importance to these factors. By reducing import dependence and catering to the underserved community, the manufacturers can drive India’s medtech industry’s growth.

Indian medtech market trade balance

• Industry exports: India’s medical device industry export value attained approximately USD 3.8 billion in the year 2023-24.
• Industry imports: In spite of the industry’s exponential growth, India still relies heavily on imported medical devices for most of its needs. Thus, the domestic manufacturers will have to considerably work towards reducing India’s medical device import dependency. 

Major Indian medical device industry segments

We have provided an overview of the Indian medical device market composition.

• Electronic devices: 56%
• Disposables and consumables: 26.5%
• In-vitro diagnostic devices: 8.1%
• Implants: 7.1%
• Surgical instruments: 2.3%

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