Industry Scenario

The medical devices market in India has the potential to grow ~4x from the current market size by 2030, driven by growing healthcare needs and the government’s commitment to facilitate growth.

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.

About 65% of manufacturers in India are mostly domestic players operating in the consumables segment catering to local consumption with limited exports. Large MNCs lead the medical device market in India with cutting-edge technology with extensive service networks.

There are 750-800 domestic medical device manufacturers in India with an average investment of $2.3-2.7 million and an average turnover of $6.2-6.9 million.

“Medical device parks” are developing around the clusters: states have committed to setting up dedicated industrial parks where domestic manufacturing can be efficient and cost-effective. The state governments of Himachal Pradesh, Tamil Nadu, Madhya Pradesh and Uttar Pradesh have received ‘in-principle’ approval to develop medical device parks and create a robust medical device manufacturing ecosystem in the country.

Production Linked Incentive (PLI) Scheme

The Indian government has identified medical devices as a priority sector for its flagship ‘Make in India’ program and is committed to strengthening the manufacturing ecosystem. The Manufacturing Linked Incentive Program (PLI) to promote domestic manufacturing of medical devices and the Manufacturing Linked Incentive Program for Pharmaceuticals (PLI 2.0) were introduced to give impetus to India’s vision of becoming a global manufacturing hub for medical devices.

The medical device industry is an indispensable and integral part of the growing Indian industry. Humankind has benefited immensely from the use of medical devices since its inception until today, and life without medical devices is unimaginable and unimaginable. A wide range of medical devices plays a vital role in catalysing not only the economy of a country but also in creating a comfortable and sophisticated lifestyle for human beings.


The current market size of the medical device industry in India is USD 11 billion and the industry is poised for significant growth in the next five years. Currently, India ranks among the top 20 global medical device markets and is the 4th largest market in Asia after Japan, China and South Korea. The medical device industry is identified as the rising sun in India under the 2014 Make in India campaign. Socio-economic factors such as rising healthcare spending, increasing physician density, growing middle class, and underserved population are helping the market grow.

India has emerged as a leading destination for high-end diagnostic services and is a growing market for diagnostic kits, reagents, hand-held devices and stimulation for operating theatres. There are 750-800 domestic medical device manufacturers in India with an average investment of $2.3-2.7 million and an average turnover of $6.2-6.9 million. The contribution of medical equipment became even more prominent in 2020 as India supported the fight against the COVID-19 pandemic through the supply of medical equipment and diagnostic kits related to COVID, such as ventilators, RT PCR kits, IR thermometers, PPE kits and N – 95 masks.


The demand for the medical device industry has largely been met through MNCs and domestic players. The latter have been instrumental in boosting manufacturing under Hon’ble Prime Minister Narendra Modi’s vision of Make in India for the World, Digital India and Skill India by enabling better access to medical devices for the general public and progressive business for the medical device sector with the objective of ‘Sabka Saath Sabka Vikas”. Such domestic players have achieved recognition not only by promoting the domestic production of high-end medical devices but also by exporting huge quantities to the world.

Domestic players show us the tremendous growth of the medical device industry in India and indicate even greater potential for the country in the years to come. Their constant pursuit of excellence means that India has become the most sought-after manufacturing hub and an attractive low-cost destination for leading medical device OEMs.


The medical device industry in India is the 4th largest in Asia and among the top 30 in the world. It is a highly capital intensive industry and boasts huge potential in terms of skilled manpower and research and development.

Initiatives like Make in India and Atmanirbhar Bharat Abhiyaan have given a much-needed boost to medical device manufacturing in the country. In order to further support domestic manufacturing and develop related infrastructure, the Government of India has approved the following programs:

Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices
Promotion of Medical Device Parks


The Production Linked Incentive (PLI) program to support domestic manufacturing of medical devices has been announced to encourage domestic manufacturing and attract large investments in the sector. The system has a total expenditure of around INR 3,420.

Under this scheme, a 5% incentive will be provided on incremental sales (over the base year: FY 2019-20) of medical devices manufactured in India. Incentives under the program will be offered for a period of 5 years from fiscal year 2020-21 to fiscal year 2025-26. Applicant companies will need to meet minimum investment and production thresholds and meet eligibility criteria to receive incentives under the program.


The Medical Device Parks Support Program was announced to develop Common Infrastructure Facilities (CIFs) which in turn will reduce the manufacturing cost of medical devices manufactured in the country. The system has a total cost of about INR 400.

As part of the program, financial assistance will be provided for the creation of CIF in four health parks selected as part of the program. The assistance will be 90% of the project cost in North-Eastern and Hilly States, while it will be 70% in other states. The medical device park project designed by the state and selected under the scheme will be implemented by the State Implementation Agency (SIA) and will receive a maximum assistance of 100 kr. The scheme will be valid for a period of 5 years from FY 2020-21 to FY 2024-25.