A significant and powerful shift is underway in India's medical devices sector, moving from a history of heavy import reliance towards becoming a global manufacturing and export powerhouse. Government initiatives such as the Production-Linked Incentive (PLI) scheme and the National Medical Devices Policy 2023 are the primary catalysts in this transformation, designed to strengthen domestic manufacturing, reduce import dependence, and position India as a trusted global MedTech partner . The goal is ambitious yet increasingly achievable: to increase India's global market share from 1.5-1.6% to approximately 10-12% in the coming years .

According to market research, the PLI scheme for medical devices has been a game-changer, committing INR 3,420 crore across four target segments — cancer care equipment, radiotherapy devices, imaging systems, and implants . For a complete understanding of the policy landscape and manufacturing impact, you can refer to the detailed India Medical Devices Market report. The scheme has already commissioned over 24 projects across 57 products, including complex, high-value items like CT and MRI systems that were once fully imported . This has significantly reduced supply-chain risks and material cost barriers. A report by the Boston Consulting Group (BCG) and the Association of Indian Medical Device Industry (AiMeD) highlights that domestic manufacturing's share of local consumption has more than doubled from about 20% in 2022 to approximately 45% in 2025 .

The export story is equally compelling. India's medical device exports have already reached USD 4 billion in FY25, with the country exporting to over 125 countries . The government aims to propel this to USD 8 billion by 2030, growing at a CAGR of over 20% . India's strength in exports lies in cost-efficient manufacturing, scale production, and price competitiveness, particularly in consumables and low- to mid-technology products, which accounted for nearly 47% of exports . However, the future lies in moving up the value chain. The sector is eyeing a larger footprint in advanced markets; for instance, the ambition is to triple medical device exports to the UK to USD 329-394 million by 2030 from USD 126 million in 2024 . This export growth is further bolstered by free trade agreements, such as the India-EU FTA and the interim trade agreement with the US, which reduce tariffs and provide preferential market access .

Despite this impressive progress, the sector faces a critical structural challenge: a continued reliance on imports for high-value components and technologically-advanced devices. Imports in FY25 were estimated at USD 8.6 billion, more than double the exports, with 70-80% of the demand for advanced devices still met through foreign sources . While India excels in final assembly, around 70-80% of high-value inputs like detectors, transducers, and medical-grade polymers are still sourced abroad, predominantly from China, Germany, and the United States . The creation of four dedicated medical device parks, backed by central government funding, is a crucial step to address this by creating ecosystems for component fabrication and deep localisation .

People Also Ask

How is the PLI scheme impacting the India medical devices market?
The Production-Linked Incentive (PLI) scheme has significantly boosted domestic manufacturing by incentivizing production of 57 high-end device categories, including MRI and CT systems . It has led to a substantial increase in local value addition, with domestic manufacturing share growing from 20% in 2022 to 45% in 2025, and has helped reduce India's historic 80-85% import dependence .

What are India's key export strengths in medical devices?
India's primary export strength is in consumables and disposables, where it excels in cost-efficient manufacturing and price competitiveness . Exports reached USD 4 billion in FY25, with the government aiming to reach USD 8 billion by 2030 . The country is now looking to expand into more advanced and value-added product categories.

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