India’s MedTech Industry: A rising global powerhouse

India’s MedTech industry, valued at US$ 12 billion in 2023, is projected to reach US$ 50 billion by 2030, driven by innovation, digital integration, and supportive government policies. Rising healthcare demand, medical tourism, and infrastructure development are fueling growth.

The Indian medical device industry is evolving from being heavily import-dependent to positioning itself as a potential global MedTech hub. With groundbreaking innovations and a strong emphasis on digital integration, the sector is set to revolutionize healthcare delivery both domestically and globally. EY Parthenon’s report, India’s MedTech Industry: The Renaissance of a Sector, underscores the industry’s rapid transformation.

“The trends we’re seeing today — ranging from the integration of digital health technologies to the rise of personalised care — are just the beginning. These innovations will be transformative, not only for healthcare providers but for the patients who will benefit from more accessible, efficient, and personalized care,” notes Suresh Subramanian, national life sciences leader at EY Parthenon India.

Valued at US$ 12 billion in 2023-24, India’s MedTech market is projected to reach US$ 50 billion by 2030. The industry’s global market share, currently at 1.65%, is expected to grow significantly, potentially reaching 10%-12% over the next 25 years. While exports, primarily to the US, amounted to US$ 3.8 billion in 2023-24, imports dominated at US$ 8.2 billion, with 80%-85% of the country’s medical devices sourced internationally.

The MedTech market is segmented into five major areas: electronic equipment (56%), disposables and consumables (26.5%), in-vitro diagnostics (8.1%), implants (7.1%), and surgical instruments (2.3%). Its growth is driven by increasing incomes, expanding healthcare insurance coverage, and a thriving medical tourism sector. Infrastructure development in Tier 2 and Tier 3 cities, supported by initiatives such as PM-JAY insurance, the Ayushman Bharat Digital Mission (ABDM), and innovative pricing strategies, is unlocking new markets.

Government policies are playing a crucial role in the sector’s expansion. Regulatory reforms like the Medical Device Rules and the National Medical Device Policy, along with initiatives such as the PLI scheme and the establishment of medical device parks, are fostering domestic production. Programs like MedTech Mitra and the Promotion of Research and Innovation in Pharma MedTech (PRIP) scheme are bolstering R&D and innovation, creating a robust ecosystem for MedTech in India.

Local manufacturers are increasingly targeting segments reliant on imports and addressing price-sensitive markets, while global multinationals are focusing on localization, R&D, and digital solutions. “The current global geopolitical climate has created a small window of unique opportunity for India. To be able to quickly catch on to this, we must act with strategic intelligence and adopt pragmatic approaches that will position us for success,” remarked the chairman of a leading global medical device company.

Indian MedTech startups are driving advancements by prioritizing safety, efficacy, accessibility, and efficiency. Digital integration is a key factor, with 79% of innovations combining MedTech and digital technologies such as AI and data analytics, particularly in diagnostics.

Experts have outlined five key priorities for the future of India’s MedTech industry: achieving manufacturing competitiveness, enhancing quality standards, strengthening supply chain resilience, adopting value-driven market strategies, and leveraging India’s IT capabilities for digital leadership. With these strategic initiatives and robust government support, India is well-positioned to emerge as a leading global MedTech powerhouse.