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India is on its way to becoming a global MedTech centre and is in a position to leverage not just the assembly of complete devices but positively influence the value chain of medical technology. With the PLI scheme, increasing collaborative international efforts, and a growing domestic base, India is well-positioned to play in the value chain not just as an assembler but as a true innovator and supplier of world-class components, opine experts.
India’s medical technology industry has entered a defining chapter, led by local teams advancing innovation and laying the foundation for long-term self-reliance. With sustained reforms and focused investments, India is well-placed to become a global Medtech innovation hub by 2047, drawing on its cost competitiveness and a rapidly evolving innovation ecosystem, they add.
Medical devices market in India is one of the top 20 medical device markets in the world. It is currently valued at $11.0 billion, approximately, Rs. 90,000 crore and expected to reach $50 billion by 2030.
The Centre has introduced various schemes including the Production Linked Incentive (PLI) scheme for Promoting Domestic Manufacturing of Medical Devices, Scheme for Promotion of Medical Devices Parks, and Scheme for Strengthening Medical Device Industry over the past years to support the domestic production during the period, for the growth of the sector.
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.
This sector is expected to realize its full potential, with the strategies like, building an enabling ecosystem for manufacturing along with a focus on innovation, creating a robust and streamlined regulatory framework, providing support in training and capacity building programs and promoting higher education to foster talent and skilled resources in line with the industry requirements.
PLI scheme triggers growth
Government’s initiatives like ‘Atmanirbhar Bharat’, ‘Make in India’, PLI etc are paving the way for a brighter future for India’s medical device industry.
The MedTech ecosystem in India has received an impetus with the PLI scheme. This marks a big step as the policy mainly looks at higher-end diagnostic imaging equipment, cancer care, and cardiovascular devices, said Falgun Jani, business head of Freudenberg Medical India.
Delving further, he added that the scheme serves as a trigger mechanism for the growth of an interdependent value chain, particularly in the manufacturing of high-precision medical components vital for present-day healthcare delivery methods.
Performance of modern medical devices is greatly dependent on their components which are made with precision, accuracy, and high-quality materials. The materials used to manufacture such components like catheter, implant-grade silicone, or parts manufactured from PEEK, diagnostic kit parts, or pharma-grade tubing should be with proven biocompatibility. With the growing demand for faster delivery and better quality at affordable costs, local manufacturing of such parts becomes crucial, Fani said
Globally, original equipment manufacturers (OEMs) are now rethinking their supply chains. Moreover, manufacturing components domestically ensures cost control, and compliance with regulations. With the right mix of technical capability, trained manpower, and policy support, India is rapidly establishing itself as a reliable manufacturing base, not only for finished devices but also for the critical components, he said.
The PLI scheme may not directly fund component makers, but it boosts the demand for their services. To become a key player in the global MedTech supply chain, India must build not only finished devices but also high-quality parts that power them. The scheme’s fosters innovation and scale at every level of the supply chain.
Focus on innovation
Led by local teams advancing innovation and laying the foundation for long-term self-reliance, India’s medical technology industry has entered a defining moment. This shift is especially visible in advanced imaging areas like Magnetic Resonance Imaging (MRI), where a convergence of local R&D and engineering excellence is driving healthcare breakthroughs from India to the rest of the world. The focus is on compact design to tackle transport and deployment hurdles,” said Sanjeev Krishnan Thampi, head of R&D for Magnetic Resonance, Siemens Healthineers Development Center.
Rising demand for early diagnostics, and high prevalence of neurological and oncological conditions are fuelling the growth of MRI installations across India. To meet this demand, there has been a need to build high-performance, locally developed MRI systems that match global standards while addressing India’s clinical diversity and accessibility challenges, he added.
The local innovation ecosystem has matured to a point where teams are now developing complete MRI systems from the ground up.
At Siemens Healthineers Development Center, our R&D footprint, increased investment, and a focus on end-to-end product development from India. This transformation reflects a commitment to solving healthcare challenges through meaningful innovation, Thampi said
Within radiology departments, MRI scanners are some of the most energy-demanding equipment.
They also rely heavily on helium a rare and finite resource with traditional scanners requiring close to 1,000 litres of liquid helium. To address this, we developed a technology which radically reduces its consumption to only 0.7 litres of liquid helium, making MRI more sustainable, efficient, and easier to maintain, he said.
Transportation and deployment have also been long-standing hurdles, particularly in remote areas. By rethinking hardware requirements and focusing on efficiency and compactness, new solutions are being introduced that make it possible to bring MRI technology closer to patients in areas where access was previously limited. With the integration of AI-powered solutions that work in tandem with hardware innovations, we optimize hospital workflows and reduce the burden on technicians, said Thampi.
Here advanced algorithms like Deep Resolve reduces MRI scan times and improve image quality. These AI-based solutions support high-quality imaging even with lower field strength systems such as 0.55T. These play a vital role in addressing patient load, reducing wait times, and supporting faster clinical decision-making, especially when there is a shortage of trained radiology professionals.
Recognition for MedTech zone innovative programme
In a landmark recognition of India’s growing global footprint in healthcare innovation, the World Health Innovation Forum (WHIF), headquartered at Andhra Pradesh MedTech Zone (AMTZ), has been selected as the only global initiative to join the prestigious BRICS+ Manufacturing Working Group.
This intergovernmental platform plays a key role in shaping manufacturing collaboration and industrial policy among BRICS nations and the wider Global South.
The announcement comes at a pivotal moment, as India prepares to assume the BRICS Presidency in 2026. WHIF’s inclusion signifies a powerful endorsement of India’s MedTech capabilities and Vizag’s emergence as a hub for South-South collaboration in health innovation.
The forum’s selection positions India not just as a consumer of global technology but as a co-architect of next-generation healthcare solutions—manufactured, regulated, and scaled in the Global South, for the Global South.
Govt schemes boost exports
The Schemes supporting development and manufacturing of medical devices in the country have helped growth of medical devices exports to almost 88 per cent during six financial years up to 2024-25.
The export has grown from $ 2,138 million in FY2018-19 to $ 4,014 million in FY2024-25, according to the Union ministry of chemicals and fertilisers.
The PLI scheme for Promoting Domestic Manufacturing of Medical Devices, which has a total budgetary outlay of Rs 3,420 crore and a five-year performance-linked incentive period from FY2022-23 to FY2026-27, has reported a cumulative eligible sales Rs 10,413.40 crore till March 2025, including export sales worth Rs. 5,002 crore.
Under the scheme, selected companies are eligible for financial incentive for incremental sales of domestically manufactured medical devices in the radiotherapy, imaging device, anaesthesia, cardio-respiratory and critical care and implant device segments, for a period of five years.
So far, 21 greenfield projects have been commissioned, and production has started for 54 products, which include high-end medical devices on which the country has been highly import-dependent, such as linear accelerators, machines for MRI and CT scans and mammograms, C-arm X-ray machines and ultrasound machines, said Anupriya Patel, minister of state in the ministry of chemicals and fertilisers recently in the Parliament.
Under the Scheme for Promotion of Medical Devices Parks, three parks have been approved and are at an advanced stage of development in Greater Noida (Uttar Pradesh), Ujjain (Madhya Pradesh) and Kanchipuram (Tamil Nadu) districts. The total project cost of these is over Rs. 871.11 crore, with Central assistance to the tune of Rs. 100 crore each for creation of common infrastructure facilities, which is expected to enhance industry’s competitiveness and reduce production costs through optimisation of resources and economies of scale.
The Scheme for Strengthening Medical Device Industry has been launched on November 8, 2024 with a financial outlay of Rs. 500 crore. It aims to strengthen the medical device industry by providing support in critical areas, including manufacturing of key components and accessories, skill development, support for clinical studies, development of common infrastructure, and industry promotion.
Panel call to sort out fund utilisation issues
Expressing concerns over the reduction in budget allocation for the PLI schemes in the pharma and medical devices sector, the Parliamentary Panel on Chemicals and Fertilisers has urged the Department of Pharmaceuticals (DoP) to address various issues that impact the implementation of the schemes.
The Parliamentary Standing Committee on Chemicals and Fertilizers, in its 11th report reviewing the action taken by the government on its recommendations on a previous report on ‘Demands for Grants 2024-25’ of the DoP, observed that the reduction in Revised Estimates (RE) compared to the Budget Estimates indicate implementation challenges.
“The Committee urge the Department to address issues such as tendering processes, environmental clearances, and investment criteria compliance in a timely manner to ensure effective fund utilization and achievement of targeted outcomes,” said the Panel headed by Member of Parliament Kirti Jha Azad.
The panel emphasized the necessity for the Department to enhance its implementation strategies to guarantee that the benefits of these schemes reach the intended beneficiaries without delay. This would support the overarching goal of promoting domestic production in the pharmaceuticals and medical device sectors.
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