The Indian healthcare and medical device sectors have grown significantly in the last decade. The rising number of medical facilities in India are boosting the demand for medical devices in the market. The Indian medical devices industry was granted the status of an ‘independent industry’ in 2014, and given the title of ‘sunrise’ sector under the Make in India scheme in 2014.

The size of the Indian medical devices market is estimated at Rs. 90,000 crore (US$ 11 billion) in 2022 and is expected to grow to US$ 50 billion by 2030 with a CAGR of 16.4 %.

The Indian medical device market share in the global market is estimated to be 1.65%.

India is the 4^th largest Asian medical devices market after Japan, China, and South Korea, and among the top 20 medical devices markets globally.

Between 2020-2030, the diagnostic imaging market is likely to expand at a CAGR of 16.4%.

Export of medical devices from India stood at Rs. 19, 803 crore (US$ 2.40 billion) in FY22.

The exports of medical devices during April-December, 2022 stood at Rs. 20,511 crore (US$ 2.49 billion), and are expected to rise to US$ 10 billion by 2025.

FDI inflow in the medical and surgical appliances sector stood at US$ 2.76 billion between April 2000-December 2022.

In May 2023, Omron Healthcare, a Japan-based manufacturer and distributor of personal healthcare products, announced that it will set up a medical devices manufacturing plant in Tamil Nadu at a cost of US$ 15.5 million (Rs. 128 crore). 

Medtronic has inaugurated a Medtronic Engineering and Innovation Centre (MEIC) in Hyderabad to leverage India's large pool of diverse and qualified talent to accelerate its innovative work in the medical technology space in the country. It has also announced an investment worth Rs. 1,200 crore (US$ 163 million) to expand its R&D centre facility for medical device software and engineering solutions in Hyderabad, Telangana. This facility will be Medtronic’s largest R&D facility, outside of the US, generating 1,000 jobs in the next five years.

Siemens Healthineers, a global medical technology company, has announced plans to invest Rs. 1,300 crore (US$ 177 million) over the next five years in Bengaluru, Karnataka, to make India one of its four key digital innovation hubs worldwide.

Microtek has announced plans to consolidate its position by expanding their medical devices portfolio. The company forayed into the burgeoning Indian healthcare market by manufacturing products including oxygen concentrators, blood pressure monitors, oximeters, and thermometers, both digital and infrared.

Innovation Imaging Technologies Pvt. Ltd. (IITPL) has established a ‘state-of-the-art’ facility in Bengaluru to manufacture 240 catheterisation laboratories in the next 12 months. Through this initiative, the company aims to strengthen the infrastructure to treat cardio-vascular diseases in the country.

The Government of India has commenced various initiatives to strengthen the medical devices sector, with emphasis on research and development (R&D) and 100% FDI for medical devices to boost the market.

The Union Cabinet approved the National Medical Devices Policy, 2023 on April 26, 2023. The National Medical Devices Policy, 2023 is expected to facilitate an orderly growth of the medical device sector to meet the public health objectives of access, affordability, quality, and innovation. 

The government of India has approved the setting up of an export promotion council for medical devices, under the Department of pharmaceuticals, with its headquarters in Noida.

The Government has tabled a draft for the new Drugs, Medical Devices and Cosmetics Bill 2022, to assure and offer thorough legal protections to ensure that the medical items sold in India are reliable, efficient, and up to required standards.

To boost domestic manufacturing of medical devices and attract huge investments in India, the Department of Pharmaceuticals launched a PLI scheme for domestic manufacturing of medical devices, with a total outlay of funds worth Rs. 3,420 crore (US$ 468.78 million) for the period FY21-28.

In 2022, the PLI Scheme for pharmaceuticals worth Rs. 18,420 crore (US$ 2.24 billion) was launched. This scheme aims to enhance India’s manufacturing capabilities by increasing investment and production in the pharmaceutical and medical devices sectors and contribute to the availability of a wider range of affordable medicines for consumers.

By 2022, the Gautam Budh Nagar, Noida, is expected to have Northern India’s first medical tools and system manufacturing park. The park is likely to be developed in Sector 28 of the Yamuna Expressway Industrial Development Authority (YEIDA) Space by the Yamuna Expressway Authority.

The Tamil Nadu government has proposed to build a medical devices park (spanning 350 acres) near Oragadam in Kancheepuram district worth Rs. 430 crore (US$ 58.92 million). There are other medical parks coming up in Himachal Pradesh, Uttar Pradesh, Punjab, etc.

The Indian Council of Medical Research (ICMR) has collaborated with Indian Institutes of Technology (IITs) to establish ‘ICMR at IITs’ by setting up Centres of Excellence (CoE) for Make-in-India product development and commercialisation in the medical devices and diagnostics space.

References: Government Websites, Press Releases, Media Reports, Deloitte Report

Note: Conversion rate used for May 2023 is Rs. 1 = US$ 0.012