India is fast becoming a global hub for MedTech production. A large domestic market, skilled workforce, and strong R&D network are the driving forces.
The medical technology sector of India, one of the fastest-growing industries, is all set to hit USD 50 billion by 2030. This presents a remarkable opportunity for global giants looking to enter the Indian market.
In the following overview, we will explore why India’s MedTech manufacturing sector is gaining global attention and how foreign manufacturers can participate in it with the help of medical devices and technology consulting services.
Understanding the MedTech landscape in India
The Indian medical device industry currently stands at USD 11 billion. Known as the sunrise sector of India, it is growing at a striking CAGR of 18-20%. At the incredible growth rate, the market is projected to touch USD 250 billion by 2047.
The sector has also experienced a surprising surge in foreign investment. The FDI for 2023 alone was USD 464 million. In the Union Budget 2025 - 2026, USD 11.48 billion was allocated to the MedTech sector. This investment and funding are the key driving forces of the MedTech production sector.
Key drivers fueling India's MedTech manufacturing boom
● Government push
The Government of India strongly supports the MedTech sector through policies and incentives. The National Medical Devices Policy, 2023, aims to reduce India’s import dependency for the healthcare sector. The policy has also regulated the price of medical devices by accelerating the National Pharmaceutical Pricing Authority (NPPA).
Additionally, as per the Production Linked Incentive (PLI) Scheme, MedTech manufacturers receive a 5% increment for 5 years. Also, the Indian Government plans to offer a 20% capital subsidy for the domestic production of medical components.
● Growing domestic demand
Due to the huge population, increasing lifestyle diseases, and healthcare awareness, demand for medical devices is on a nationwide rise. This expanding need is further elevated by the COVID-19 pandemic.
● Cost competitiveness
Compared to developed nations like the US, Japan, and Germany, the manufacturing cost of MedTech devices is low in India. That is why several global MedTech companies have established innovation centres here.
● Technological innovation
The domestic MedTech production houses are not only manufacturing devices, but they are also innovating. To support this, the Department of Pharmaceuticals (DoP) has launched the Pharmaceutical Research and Innovation Platform (PRIP). The scheme offers financial funding to eligible digital health startups.
Strategic advantages for global players
Foreign companies entering India can leverage FDI for the Make in India initiative. The scheme automatically routes 100% FDI to the medical sector. In addition to this, global MedTech players can get:
● 100% tax deduction on profit for new businesses as per Section 80, Income Tax Act
● Seamless access to a talented workforce and raw materials
● Easy entry to medical device parks across different states like Himachal Pradesh, Tamil Nadu, Madhya Pradesh, and Uttar Pradesh.
● Lower operational costs with high returns due to rising domestic and export demand.
4 major segments of the MedTech Sector with high growth potential
- Diagnostic devices: Imaging components like MRI, X-ray, and CT scans are most in demand in India. The component subsidy and PLI make the local manufacturing of these components cost‑effective.
- Surgical and implantable devices: Another key focus area of this industry is surgical and implantable devices like orthopaedic implants and cardiovascular stents.
- Home healthcare and wearables: The surge of chronic diseases has increased the need for home healthcare devices, including blood pressure monitors, glucose meters, ECG devices, and fitness wearables like smart watches.
- Critical care and life support equipment: Another sub-sector of the MedTech industry is critical care equipment. Currently, India can produce more than 39,600 ventilators annually, while the demand for invasive units is between 9,000 and 12,000.
Opportunities for foreign investors and manufacturers
As per the Confederation of Indian Industry (CII), India's medical technology sector is set to export up to USD 20 billion by 2030. With India becoming a major global MedTech supplier, foreign investors can consider medical technology and devices consulting services and join in this export growth and scale quickly. Take a look at some of the additional opportunities:
● Greenfield manufacturing: Global firms can set up feature-rich manufacturing units under the PLI scheme. For example, in 2024, an Indian multinational technology company announced an investment of USD 916.37 million (INR 8,000 crore)* to build manufacturing units and R&D centres for the next 5 years.
● Joint ventures: Global players can partner with regional firms to navigate through India’s regulatory framework and customer networks.
● Contract manufacturing: Foreign MedTech brands can outsource production from Indian manufacturing firms. Especially for consumables and disposables, India has become a preferred outsourcing spot.
● R&D centres: Setting up or expanding R&D centres in India promotes innovation and research capacity. Many global giants are elevating their reach in the country to offer sustainable solutions. For example, a Germany-based medical technology company has invested USD 10.54 million (INR 91.9 crore)* to manufacture CT and MRI systems at its Bengaluru unit.
● Acquisitions and strategic investments: India is home to countless medical startups. Investing in or acquiring an Indian startup will allow foreign companies to establish their footprint successfully in the Indian market.
*Note: Considering 1 USD = 87.50 INR.
4 challenges to watch out for in the MedTech Sector
- Fragmented supply chain: The medical infrastructure in India is still in its developing stage. Without proper medical devices and technology consulting services, setting up manufacturing units will be difficult.
- Skill gaps in manufacturing excellence: Though India has a skilled workforce, manufacturing medical components requires precise training. Due to the changing production process, this skill gap remains a challenge.
- Complex regulatory compliance for exports: Compliance with FDA and BIS standards is challenging. Consultants offering medical devices and technology consulting services help companies navigate audits.
- Limited public procurement: Domestic producers often struggle to compete with imported equipment in government tenders.
Why Choose Tecnova for MedTech Consulting in India?
Tecnova is a leading market entry specialist for foreign companies in India.
We offer end-to-end medical devices and technology consulting services, especially for the Indian healthcare ecosystem. Our services include:
● Certification support for CE, FDA, and CDSCO.
● Plant setup support through medical technology & devices consulting experts.
● Vendor development and supply chain setup.
At Tecnova, we simplify complexity! With decades of experience in India entry, our team ensures your MedTech project is compliant, profitable, and scalable from day one.
References
India Biotech Market Growth: The Role of Strategic Life Sciences Consulting
Strategic Investment Opportunities in India—and How to Navigate Them
Key Healthcare Trends Transforming India’s Market for Global Investors
Opportunities and Solutions for Healthcare and Life Sciences Companies in the Indian Market
Guide to Optimize Supply Chain & Logistics for your Indian Business
Regulatory Compliance & Taxation for Foreign Companies – Complete Guide
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