Fostering innovation for improved health

The current market size of the medical devices industry in India is estimated at $11 Bn. India is the fastest growing medical devices market amongst the emerging markets. The medical devices industry in India consists of large multinationals as well as small and medium enterprises (SMEs) growing at an unprecedented scale.

FDI up to 100% under the automatic route is permitted for manufacturing of medical devices. Strong FDI inflows reflect the confidence of global players in the Indian market

  • $3.28 Bn FDI inflows in Medical and Surgical Appliances from Apr 2000 to Mar 2024
  • For further details, please refer FDI Policy

The export of medical devices sector has been growing at a CAGR of 9-11% over the last 5 years. India’s expected export of medical devices will reach ~ $10 Bn by 2025.

The Government of India has taken several steps to ensure the growth of a vibrant ecosystem of medical devices manufacturing in India:

  • Production Linked Incentives: Government has launched Production Linked Incentive Schemes for medical devices with financial incentives worth $400 Mn to boost domestic production
  • Development of Medical Devices Parks: New Medical Devices Parks upcoming in Himachal Pradesh, Uttar Pradesh, Madhya Pradesh, & Tamil Nadu to create a robust ecosystem for medical device manufacturing
  • Policy Support: Release of First National Medical Devices Policy, National Policy on R&D and Innovation in the Pharma- MedTech Sector in India and the Scheme for Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) to boost research and innovation.
  • %

    Market Growth Rate (expected)

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    Types of Medical Devices in India

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    The market share to increase to 10-12% over the next 25 years

Recognized as a Sunrise Sector of India under Make in India Campaign of 2014

Market size expected to reach $50 Bn by 2025

India is the fastest growing medical devices market amongst the emerging markets

Industry Scenario

The size of the Indian medical devices market is estimated at $11 Bn, and is expected to grow to $50 Bn by 2025 and the sector has been growing steadily at a CAGR of 15% over the last 3 years

Medical devices are segregated into five major segments:

  • Consumables & Disposables include needles and syringes, etc
  • Diagnostic Imaging includes MRI, X-Ray, Ultrasounds, etc
  • Dental Products includes dentures, braces, etc
  • Orthopaedics & Prosthetics include knee implants, artificial joints
  • Patient Aids include hearing aids and pacemakers, etc

There are 750-800 domestic medical devices manufacturers in India, accounting for 65% of the market. The start-up ecosystem in India’s medical devices sector is diverse and vibrant, with 250+ organisations engaged in innovations for addressing important health issues.

Indian medical devices sector’s contribution has become even more prominent since India supported the domestic and global battle against COVID-19 pandemic through the production of medical devices & diagnostic kits, such as ventilators, Rapid Antigen Test kits, RT-PCR kits, IR thermometers, PPE kits & N-95 masks.

The manufacturing footprint in India is developing in its scale and geography: Dedicated Medical devices manufacturing “clusters” and Parks are being developed in the country (Refer to 'Data on Map' section below).

Clusters have “Medical Device Parks” developing around them: states have committed to set-up dedicated industrial parks where efficient domestic manufacturing at lower costs. 4 Medical Devices Parks are coming up in Himachal Pradesh, Tamil Nadu, Madhya Pradesh, and Uttar Pradesh to provide easy access to standard testing and infrastructure facilities for medical devices manufacturing.


  • Growing Population

    ​India has become the world’s most populous nation, making the demand for medical devices greater than ever before.

  • Life Expectancy

    From the current 67.5 years, life expectancy in India is expected to increase to 70 years by 2025

  • Shifting Disease Burden

    Non-Communicable Diseases (NCDs) account for 50% of the disease burden and 60% of all deaths in India

  • Changing Preferences

    Growing health awareness, changing attitude towards preventive healthcare, & increasing onset of lifestyle diseases

  • Growing Middle Class

    ~73 Mn households will be moving into the middle-class category in India over the next 10 years, thereby enhancing their purchasing power, including with respect to Medical Devices

  • Increasing disposable income

    8% Indians will earn more than $12,000 p.a. by 2026

  • Health Insurance

    Approx. 20% of Indians have health insurance cover. This number is expected to increase with rising incomes and growing urbanization

  • Rise in Medical Tourism

    Expected to grow to $13 Bn by 2026, the medical tourism sector is set to accelerate demand for high-end technological devices, medical equipment, and appliances

  • Infrastructural Development

    4 Medical Devices Parks are coming up in Himachal Pradesh, Tamil Nadu, Madhya Pradesh, and Uttar Pradesh


Production Linked Incentive (PLI) Scheme

The government has launched the Production Linked Incentive (PLI) Scheme to boost domestic manufacturing in the medical devices sector. Under the PLI scheme for Medical Devices, till now, a total of 26 projects have been approved, with a committed investment of INR 1206 Cr (~$147 Mn) to enable growth and innovation in the MedTech industry and make India as the global hub for manufacturing and innovation in the coming years.

  • INR 3420 Cr

    Schemes Outlay


Industrial Land Bank Portal

GIS - based map displaying available infrastructure for setting up business operations in the state.

Investible Projects

Investment Opportunities in Medical Devices

    Major Investors

    Data On Map

    Latest In Medical Devices

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    Asked Questions

    Can an Applicant apply for incentives under the scheme in multiple target segments? 

    There shall be no restriction on any applicant applying in more than one target segment. However, the applicant shall be required to submit a separate application along with the application fee for each target segment and shall be required to separately meet the eligibility criteria of threshold Investment and Incremental Sales of Manufactured Goods for each application.

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    How will funds for the Medical Parks be disbursed?

    Grant-in-aid will be released in four instalments in the following manner:

    Installment Percentage of Funds Remarks/ Pre-requisites
    First 30 On final approval of the project by the SSC and after the deposit of 30% of SlA's share in the project cost in the Trust and Retention Account (TRA) or Escrow or No Lien Account as the case may be, subject to the condition that all relevant environment clearances are in place.
    Second 30 60% utilisation of the first instalment and after the proportionate expenditure has been incurred by the SIA with proportionate physical progress of the Medical Device Park as per the DPR.
    Third 30 100% utilisation of first instalment and at least 60% utilization of second instalment and after the proportionate expenditure has been incurred by the SIA with proportionate physical progress of the Medical Device Park as per the DPR.
    Fourth 30 100% utilisation of second and third instalments and SIA has mobilized and spent its entire share in proportion to the grant and completed the project in all respects.


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    Is the list of common facilities applicable in the scheme exhaustive? 

    The list of common facilities/center given in the list are indicative and states are encouraged to plan for facilities, the implementing agency considers useful.

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    Who will be responsible for Maintenance of Assets?

    State Implementation Agency shall be responsible for Operation and Management of assets created under the Scheme.

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    Will brownfield projects be eligible under the scheme? 

    No only Greenfield as per the scheme definition are eligible for the Production Linked Incentive scheme for Medical Devices. (refer scheme guidelines for more information).

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