Currently, India ranks the fourth-largest medical devices market in Asia and among the top 20 globally.
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According to the report, growth is being propelled by government initiatives such as National Medical Devices Policy (NMDP), Production-Linked Incentive (PLI) Scheme, Scheme for Promotion of Medical Devices Parks, and MedTech Mitra.
The study assumes greater significance in the light of the Union Budget-FY27’s renewed focus on bio-pharma research in the country.
The report highlights that 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.
Medical devices exports have reached USD 4.1 billion in FY25 with the government targeting to raise India’s global market share from 1.6% to around 12% in the coming years. The US and Germany are the key export destinations, while the US and China are major import sources.The study shows that despite strong export performance, the sector remains largely import-dependent, with 70-80% of domestic demand being met through imports, particularly for technologically-advanced devices. Also Read:SC seeks responses on plea to exempt doctors from Consumer Protection Act
As compared to exports, imports were more than double at an estimated USD 8.6 billion, growing at a 7.1% CAGR over the same period.
The report highlighted that India’s export strength is in consumables, which accounted for nearly 47% of exports between April-September FY25, and shows India’s strengths in cost-efficient manufacturing, scale production, and price competitiveness in low- to mid-technology products.
In contrast, the report says, electro-medical equipment accounted for nearly 60% of imports, driven by India’s continued reliance on advanced, technology-intensive devices.
The domestic manufacturing base consists of approximately 800 medical device manufacturers in a broad but fragmented industry landscape. The report reveals that the average deal size for PE/VC funding has increased nearly 2.5 times from $56 million in 2022 to $137 million in 2024.
Four states, namely UP, Maharashtra, Haryana, and Karnataka are playing a critical role in strengthening the industry by enabling shared infrastructure, skilled manpower, and supplier networks, particularly for small and mid-sized manufacturers, according to the report.
