India’s medical devices sector is expected to touch $50 billion by 2030, up from $12 billion in 2023, due to a surge in creativity and innovation from startups as they integrate pure medical technology with digital advancements, according to EY Parthenon’s latest report. The ambitious growth of the medtech sector, according to the report, will be fuelled by several critical factors including supportive government policies aimed at reducing import dependence and bolstering exports.
For instance, in early November, the government came out with a new scheme for strengthening the sector. The scheme, which has an outlay of Rs 500 crore over three years, gives a boost to domestic manufacturers to make components and final products in the country which will enable them to compete with the large global device makers and venture into new markets.
The industry’s growth projections stems from a bunch of factors, including a rising prevalence of chronic diseases, increased focus on prevention, an aging population and shift towards alternate site of care which is resulting in demand of medical devices such as wearables, devices for remote monitoring, disease management and early screening. In addition, the rising income, greater healthcare insurance coverage, infrastructure development, and expanding medical tourism are creating demand for both affordable and innovative medical devices.
“The trends we’re seeing today — ranging from the integration of digital health technologies to the rise of personalised care — are just the beginning. These innovations will be transformative, not only for healthcare providers but for the patients who will benefit from more accessible, efficient, and personalised care,” said Suresh Subramanian, national lifesciences leader at EY Parthenon India.
The report said that despite growing export capabilities, India remains a net importer of medical devices, relying on imports for 80-85% of its domestic requirements. In FY24, for instance, India’s medical devices imports reached $8.2 billion, marking a 13% increase from the previous year. This is more than twice the value of total exports. The surge in imports can be attributed to the growth of top-tier hospital chains such as Max, Hinduja Group, Fortis, Manipal, Calcutta Medical Research Institute (CMRI), and Apollo which are investing in advanced infrastructure, it said.
However, despite being a significant importer, India has the potential to emerge as a key exporter and a global industry leader. “This shift would be driven by India’s strategic strengths such as skilled workforce, cost competitiveness, technology edge, and government initiatives that promote domestic manufacturing and innovation,” the report said.