India’s Medical Device Sector: Market Insights and Opportunities for Foreign Investors

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The medical device sector in India is currently experiencing more growth than it has seen in the last decade due to the diversified product portfolio and rapidly advancing technology. India is currently Asia’s fourth-largest medical device market at US$11 billion, and it is projected to reach US$50 billion by 2030.

India’s medical device sector relies heavily on imports, constituting approximately 80% of the supply chain, particularly high-end equipment like ultrasonic scans, PCR tech, and medical imaging from key nations such as the United States, China, Germany, the Netherlands, and Singapore. Notably, India is the largest importer of prosthetics and the second-largest importer of orthopedic equipment globally. During the fiscal year 2021-22, India’s medical device imports surged from US$5.3 billion to US$8.5 billion reflecting a notable 41% increase.

On the other hand, India witnessed substantial growth in its medical device exports, reaching US$2.9 billion during FY2021-22. The United States stands as the primary export market for India, with China, Germany, France, and Singapore also emerging as major export destinations. This growth highlights the increasing demand for Indian medical devices worldwide, as the country’s technology gains global recognition.

 Source: EEPC, India

Despite a notable rise in exports over the same period, the significant growth in imports highlights a reliance on external sources to satisfy the country’s medical device needs, posing challenges to achieving self-sufficiency in this sector. Amid this growth trajectory, there is a notable surge in demand for surgical instruments, IVD reagents, implants, disposables, electronic equipment, and consumables, suggesting evolving market dynamics and opportunities for foreign players. Additionally, the sector has seen a significant increase in investments, particularly from foreign sources, with foreign investment comprising 98% of the total investment in India in 2020. Various government initiatives like Make in India have spurred growth in the medical device sector.

In addition, clusters of medical device companies are strategically located in Indian states such as Uttar Pradesh, Maharashtra, Haryana, Karnataka, Gujarat, Andhra Pradesh, Rajasthan, Telangana, and Tamil Nadu, benefiting these states with multifunctional support including hospitals, raw materials, and skilled professionals.

India’s Manufacturing Ecosystem for Medical Devices

Source: Invest India

The Indian government’s policy support has played a crucial role in promoting the medical devices industry’s growth. Government initiatives such as Production Linked Incentives (PLI), promotion of medical device parks, and 100% FDI have boosted exports as well as encouraged large-scale manufacturing. Moreover, the release of India’s First National Medical Devices Policy and the National Policy on R&D and Innovation in the Pharma-MedTech sector signals robust government backing and investment prospects. The National Medical Device Policy aims to foster orderly sector expansion, focusing on access, affordability, quality, and innovation to enhance public health. Meanwhile, the National Policy on R&D emphasizes boosting research and development efforts, particularly in creating indigenous, cutting-edge products and technologies. Both these policies contribute to enhancing regulatory frameworks, incentivizing innovation investments, and cultivating a supportive innovation ecosystem.

International companies need collaborative efforts to leverage these policies to forge partnerships with Indian firms for joint ventures, both greenfield and brownfield investments, enhancing expansion opportunities.

The rise of India’s medical device sector offers foreign companies a promising landscape for investment and growth. With favorable government policies, increasing exports, and the potential for collaboration and technology transfer, India’s medical device sector is poised to thrive in the coming years. By seizing these opportunities, foreign companies can tap into the immense potential of India’s medical device market and rise with the sector’s continued success. Contact Tractus today to discover how to turn your trade and investment goals into operational reality.


Authored by

Delicia Dsouza is a consultant based in India.


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