India’s medical technology sector could grow over four times to touch $89 billion by 2035, driven by rising domestic demand, active policy push, strong capital flows into the sector, and favourable trade position, a new report by BCG, Association of Indian Medical Device Industry (AiMeD) and Kalam Institute of Health Technology (KIHT) said.
As per the report, the domestic MedTech market has jumped from $11 billion in 2022 to $16 billion in 2025, making it one of the fastest-growing segments in the healthcare sector. Domestic manufacturing has grown sharply with its share in domestic demand surging from 20% in 2022 to 45% in 2025. At the same time, the share of imports in domestic consumption has dropped from about 80% to 55%.
Despite the progress, India still remains heavily dependent on imports in critical segments. Large medical equipment such as MRI and CT scanners continue to have import dependence while consumables and diagnostics also rely significantly on imported components and raw materials.
The report noted that the Indian MedTech companies are now entering new, high-value segments (such as implants and imaging) which is expected to substitute imports and improve share of local Manufacturing. “Indian firms are emerging as global challengers in high import-dependent segments such as Voxelgrids (helium-free MRI), SS Innovations (soft-tissue surgical robot), and Meril (MISSO surgical robot),” the report stated.
Global Challengers
According to the report, India’s MedTech market is at a pivotal inflection point, with several momentum building up over the past few years. This includes policy push from the government in the form PLI (performance-linked incentive) scheme wherein about 24 projects across 57 products have been commissioned. Additionally, four MedTech parks are underway currently. It further noted that India’s labor cost is 60-80% below US and 40-50% below China. This cost advantage coupled with free trade agreements (FTAs) signed with UK, NZ and Oman will potentially provide access to large markets.
The study has identified three major growth areas for the domestic MedTech players. The most prominent is the “India for India” market under which domestic manufacturers can serve growing domestic demand and replace imports with local products. The second opportunity is exports which could increase from $4 billion today to $16-18 billion by 2035 by building own IP-led brands. The third opportunity is contract manufacturing capability, which is currently limited to a few small players, but is expected to grow exponentially owing to recent success stories in the electronics space.
Regulatory Roadblocks
The report has listed out several barriers that must be addressed to fully realise the potential of the sector. “Key components and raw material remain import-dependent, also an inverted duty structure in select items erodes the viability of domestic manufacturing. Multiple NOCs (no-objection certficates), sequential approvals, classification ambiguity, and limited alignment with EU/USFDA frameworks delay approvals and exports,” it adds.