Snapshot
Fostering innovation for improved health
The medical devices industry in India consists of large multinationals as well as small and medium enterprises (SMEs) growing at an unprecedented scale.
The current market size of the medical devices industry in India is estimated to be $11 bn.
Medical device sector is projected to register a CAGR of 14.8% and is expected to reach $11.86 bn in 2021-22
The sector is likely to grow to $ 65 bn industry by 2024
India’s medical devices industry is poised for significant growth in the next five years:
The market size is expected to reach $50 bn by 2025
100% FDI is allowed under the automatic route for both brownfield and greenfield setups. Strong FDI inflows reflect the confidence of global players in the Indian market
- Since April 2000, $2.1 bn in FDI
- Of this, $600 mn was received in the last 5 years
- Singapore, United States, Europe, and Japan are key investors
- Equipment & Instruments, Consumables and Implants have attracted most FDI
- For further details, please refer FDI Policy
Imports: $5.6 bn, Exports: $2.51 bn (2019-20) India’s expected export of medical devices will reach ~ $10 bn by 2025. Overall import dependency of 75 – 80% in India.
The Government of India has taken several steps to ensure the growth of a vibrant ecosystem of medical devices manufacturing in India over the past 5 years:
- Recognized Medical Devices as a sunrise sector under Make in India campaign, 2014
- The Medical Devices Rule of 2017
- Adopted risk-based classification based on GHT guidelines: Classes A, B, C, D
- Perpetual licences for manufacturers
- The Medical Devices Amendment Rules of 2020 bring all medical devices in India under regulation as drugs
- A Productions Linked Incentives Scheme for Medical Devices, 2020
- Incentive @ 5% of incremental sales over the base year 2019-20 will be provided on the segments of medical devices identified
- Cancer care/Radiotherapy medical devices
- Radiology & Imaging medical devices (both ionizing & non-ionizing radiation products) and Nuclear Imaging Devices
- Anaesthetics & Cardio-Respiratory medical devices including Catheters of Cardiorespiratory Category & Renal Care Medical Devices
- AII Implants including implantable electronic devices like Cochlear Implants and Pacemakers.
- Will lead to expected incremental production of INR 68,437 Crore over a period of 5 years
- Incentive @ 5% of incremental sales over the base year 2019-20 will be provided on the segments of medical devices identified
- Funding for Medical Devices Parks in the country, 2020
- Medical Device Parks with financial implications of INR 400 crores
- A maximum grant-in-aid of Rs.100 crore per park will be provided to the States
- Expected to reduce the manufacturing cost of medical devices in the country
- The Schemes (Parks & PLI) will lead to a generation of additional employment of 33,750 jobs over a period of 5 years
- %
Pvt. sector's share in hospitals
- %
Growth rate (2009-2016)
Number of pvt. players in India
- +
Number of health-tech startups in India

India among the top-20 markets for medical devices in the world

Market size expected to reach $ 50 bn by 2025

India is the 4th largest market for medical devices in Asia

- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
Medical Devices industry has the potential to grow at 28% per annum and reach $50 Bn by 2025
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
Around 65% of the manufacturers in India are mostly domestic players operating in the consumables segment and catering to local consumption with limited exports. Large Multinational Corporations lead the high technology end of the Medical Devices market with extensive service networks.
There are 750–800 domestic Medical Devices manufacturers in India, with an average investment of $2.3–2.7 mn and an average turnover of $6.2-6.9 mn.
The manufacturing is developing in its scale and geography: there are six Medical devices manufacturing “clusters” 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. In 2019, Andhra Pradesh, Telangana, Tamil Nadu, and Kerala have got in-principle approval from Government of India for new medical devices parks.
GROWTH DRIVERS
Nascent industry
Importing more than 90% of sophisticated devices, the domestic industry has a huge scope for R&D capacity
Demographics
Ageing population, life expectancy to cross 70 years by 2022, thereby requiring home-based healthcare devices
Increasing disposable income
8% Indians will earn more than $ 12,000 p.a. by 2026
Industrial Parks
4 medical devices parks in India are under-development
Government commitment
New rules and regulatory processes for the medical devices sector, 100% FDI allowed, measures to correct unfavourable duty structure undertaken

