India’s medical device sector is undergoing a transformative shift. With an estimated market size of $12 billion in 2023-24, it is on track to grow fourfold and reach $50 billion by 2030. Factors such as rising healthcare demand, digital healthcare innovations, and robust government support are propelling this growth as India positions itself as a manufacturing and export hub, and the global spotlight is firmly set on its Medical Equipment potential.
Current Market Size and Future Outlook
India’s medical equipment market has shown remarkable resilience and expansion. From $12 billion in FY24, the sector is expected to exceed $20 billion by FY25 and reach $50 billion by 2030. Diagnostic equipment, one of the fastest-growing sub-sectors, is expected to experience a sharp rise due to the increasing prevalence of non-communicable diseases and the demand for preventive care. Simultaneously, exports are projected to more than double within two years.
Medical Devices Market & Export Growth Forecast
Financial Year | Market Size (USD Billion) | Export Value (USD Billion) |
2023-24 | 12 | 3.8 |
2025 (Est.) | 20+ | 10 |
2030 (Target) | 50 | — |
What is Driving the Medical Equipment Growth?
Several domestic and global factors are catalyzing this industry’s growth:
- Rapid expansion of hospital infrastructure in Tier 2 and Tier 3 cities
- Growth in lifestyle diseases like diabetes and cardiovascular disorders
- Increased adoption of wearable, digital, and remote diagnostic tools
- Surge in international patients choosing India for affordable treatment
- Government policies promoting Make in India and self-reliant healthcare manufacturing
Export Landscape: India’s Global Edge
India is gaining prominence as a reliable source of high-quality, cost-efficient medical devices. Demand is surging in regions like:
- Southeast Asia and the Middle East
- African nations with an underdeveloped healthcare infrastructure
- Western markets are seeking supply chain diversification
By 2025, exports are expected to touch $10 billion. Indian manufacturers are expanding global footprints by aligning with international standards and focusing on innovation and affordability.
Government-Led Policy Support
The Indian government has launched a series of focused interventions to scale this industry:
- 100% FDI permitted through the automatic route to encourage capital inflow
- Production Linked Incentive (PLI) Scheme to support manufacturing scale and competitiveness
- National Medical Devices Policy, rolled out in 2023, prioritizes R&D, quality systems, and global outreach
- Medical Device Parks have been established in Tamil Nadu, Andhra Pradesh, Telangana, and Kerala.
- The Export Promotion Council for medical devices was launched under the Department of Pharmaceuticals
Key Manufacturing Clusters in India
India’s geographical distribution of production capacity includes:
- Gujarat – Emerging cluster for diagnostic kits and consumables
- Maharashtra – Leading in imaging systems and surgical instruments
- Karnataka – Focus on electronics-integrated medical devices
- Tamil Nadu & Andhra Pradesh – Known for end-to-end MedTech parks and skilled labor base
These clusters benefit from supportive state policies, connectivity, and technical infrastructure.
Investment Trends & Sectoral Confidence
With policy clarity and robust domestic demand, investor confidence is strong. Key highlights include:
- Inflows through FDI have accelerated in recent years
- The PLI scheme has led to greenfield investments in device manufacturing
- Budget allocations to healthcare are increasing year on year
- India is viewed as an alternative supply base to China for many global buyers
Medical Equipment Sectoral Challenges
Despite significant progress, the sector faces some limitations:
- High dependency on imports for advanced imaging and therapeutic devices
- Regulatory complexity in meeting multiple international certification standards
- Need for a stronger R&D base and IP generation
- Skill gap in biomedical technology and engineering professionals
Pathways for Indian Manufacturers to Go Global
To enter and sustain in global markets, Indian businesses should:
- Secure certifications like CE, US-FDA, and ISO 13485 to access regulated markets
- Partner with global distributors or B2B platforms to scale reach
- Participate in international medical trade fairs and buyer-seller meets
- Take advantage of government trade facilitation schemes and duty exemptions
India’s medical device industry is scaling rapidly. Backed by domestic demand, international interest, and enabling policy, it is well-positioned to become a global manufacturing and export hub. With strategic planning, certification, and market engagement, Indian manufacturers can successfully capture a larger share of the global MedTech supply chain by the end of this decade.
Frequently Asked Questions
Q1. What is the projected size of India’s medical equipment market by 2030?
It is expected to reach $50 billion by 2030.
Q2. What is India’s current export volume of medical equipment?
India exported approximately $3.8 billion in 2023-24, with a target of $10 billion by 2025.
Q3. Which countries are the top importers of Indian medical devices?
Major markets include the United States, Germany, the UAE, Singapore, Brazil, and key African nations.
Q4. What incentives are available to Indian manufacturers?
Support includes the PLI scheme, 100% FDI, Medical Device Parks, and an Export Promotion Council.
Q5. Where are the main medical equipment manufacturing clusters located in India?
Gujarat, Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu, and Telangana.
