Daijiworld Media Network - New Delhi
New Delhi, Feb 12: India’s medical devices sector is poised for significant growth, with its market size expected to surge from $15.2 billion in 2025 to $50.1 billion by 2030, registering a compound annual growth rate (CAGR) of 26.9 per cent, according to a report by Rubix Industry Insights.
The report attributes this strong momentum to a series of policy measures introduced by the government, including the National Medical Devices Policy, the Production Linked Incentive (PLI) Scheme, the Scheme for Promotion of Medical Devices Parks, and the MedTech Mitra initiative. These programmes are aimed at boosting domestic manufacturing, enhancing infrastructure, and strengthening India’s position in the global medical technology landscape.
Despite the growth trajectory, the sector continues to rely heavily on imports. In FY25, medical device exports stood at $4.1 billion, while imports were significantly higher at $8.6 billion. Currently, nearly 70–80 per cent of domestic demand—particularly for high-end and technologically advanced equipment—is met through imports.
Between April and September FY25, consumables accounted for around 47 per cent of exports. On the import side, electro-medical equipment dominated, comprising nearly 60 per cent of total imports.
India presently ranks as the fourth-largest medical devices market in Asia and among the top 20 globally. The government has set an ambitious target of increasing the country’s share in the global market from the current 1.6 per cent to about 12 per cent over the coming years. The United States and Germany remain key destinations for Indian exports, while the US and China are the primary sources of imports.
The Union Budget for FY27 has underscored support for bio-pharmaceutical research, further strengthening the ecosystem for innovation and manufacturing. The report highlights additional growth drivers such as rising income levels, expanding health insurance coverage, improved healthcare infrastructure, and the steady rise of medical tourism. These factors are expected to fuel demand for both affordable mass-market devices and advanced solutions for specialised treatment.
India’s domestic manufacturing base includes approximately 800 producers. Investment interest in the sector has also grown, with private equity and venture capital deal sizes increasing from $56 million in 2022 to $137 million in 2024. States such as Uttar Pradesh, Maharashtra, Haryana, and Karnataka are emerging as key hubs, supported by shared infrastructure, skilled workforce availability, and strong supplier networks.
The report also referenced the proposed India–EU Free Trade Agreement (FTA), describing it as a positive development for the medical devices industry. While zero tariffs on medical devices are seen as beneficial, experts emphasised the need to address non-tariff barriers to ensure smoother market access and strengthen bilateral trade in life-saving technologies.