India's medical devices industry to reach USD 50.1 billion by 2030: Report

India's Medical Devices Market Poised for Explosive Growth

India's medical devices industry stands at the threshold of unprecedented expansion, with projections indicating a surge from USD 15.2 billion in 2025 to USD 50.1 billion by 2030, representing a compound annual growth rate of 26.9 percent. This remarkable trajectory reflects the sector's growing importance in the global healthcare landscape, where India currently ranks as the fourth-largest medical devices market in Asia and maintains a position among the top 20 globally. The projected growth underscores the industry's potential to transform from a regional player into a more significant global force in medical device manufacturing and distribution.

Government Initiatives Fuel Industry Expansion

The accelerated growth of India's medical devices sector is substantially driven by strategic government interventions designed to strengthen domestic capabilities and foster innovation. Key initiatives including the National Medical Devices Policy, the Production-Linked Incentive Scheme, the Scheme for Promotion of Medical Devices Parks, and MedTech Mitra have created a conducive environment for manufacturers and entrepreneurs. These policy measures aim to enhance competitiveness, encourage investment in manufacturing infrastructure, and support the development of a robust supplier ecosystem. The Union Budget for fiscal year 2027 has further reinforced this commitment with renewed focus on bio-pharma research, signaling the government's sustained dedication to building a stronger healthcare manufacturing base.

Demand Drivers: Healthcare Access and Economic Growth

Multiple factors are converging to create heightened demand for medical devices across India's healthcare sector. Rising income levels among the population have expanded purchasing power for healthcare products and services, while the penetration of health insurance schemes has made advanced medical solutions more accessible to broader segments of society. Simultaneously, investments in healthcare infrastructure continue to strengthen hospital networks and diagnostic facilities across urban and rural areas. The growth of medical tourism, coupled with the increasing prevalence of chronic diseases among an aging population, has created diverse demand patterns ranging from affordable mass-use devices to sophisticated solutions for specialized medical care.

Rising income levels, expanding health insurance penetration, increasing healthcare infrastructure and the growth of medical tourism are boosting demand for both affordable mass-use devices and advanced solutions for specialised care.

Export Momentum and Global Market Ambitions

India's medical devices sector has demonstrated impressive export performance, with shipments reaching USD 4.1 billion in fiscal year 2025. The government has set an ambitious target to increase India's global market share from the current 1.6 percent to approximately 12 percent in the coming years. The United States and Germany have emerged as key export destinations, reflecting the quality and competitiveness of Indian-manufactured devices. However, imports have grown even more substantially, reaching USD 8.6 billion and expanding at a 7.1 percent annual rate, indicating the industry's continued reliance on advanced technology imports and highlighting areas where domestic manufacturing capacity requires development.

Manufacturing Landscape and Investment Trends

The domestic medical devices manufacturing base comprises approximately 800 manufacturers operating across a broad but fragmented industry landscape. India's export strength predominantly lies in consumables, which accounted for nearly 47 percent of exports during the first half of fiscal year 2025, demonstrating the nation's competitive advantages in cost-efficient manufacturing and price-competitive low to mid-technology products. Conversely, electro-medical equipment constitutes nearly 60 percent of imports, underscoring India's continued dependence on technologically advanced devices. The investment landscape has shown encouraging signs, with average deal sizes for private equity and venture capital funding increasing nearly 2.5 times, rising from USD 56 million in 2022 to USD 137 million in 2024, indicating growing confidence in the sector's growth potential.

Regional Strengths and Future Prospects

Four states—Uttar Pradesh, Maharashtra, Haryana, and Karnataka—are playing pivotal roles in strengthening the medical devices industry by providing shared infrastructure, skilled workforce development, and establishing supplier networks particularly beneficial for small and mid-sized manufacturers. These regional clusters have become crucial hubs for innovation and production, facilitating collaboration and knowledge transfer across the ecosystem. As the sector advances toward its 2030 targets, continued focus on technological upgrading, regulatory modernization, and capacity building in high-tech segments will be essential for realizing the industry's ambitious growth aspirations and establishing India as a globally competitive medical devices hub.

The projected growth of India's medical devices sector to USD 50.1 billion by 2030 represents a transformative opportunity for the nation's healthcare ecosystem. Driven by supportive government policies, rising healthcare demand, and increased investment, the industry is positioned to address both domestic healthcare needs and capture growing international markets. While challenges remain in high-technology segments and import dependency, the strong growth in exports, expanding manufacturing base, and robust investment trends suggest that India is steadily building the capabilities necessary to achieve its global market share ambitions and contribute meaningfully to worldwide medical device innovation and production.