Despite strong export performance, the medical devices sector in the country remains largely reliant on imports, with 70-80% of domestic demand met through imports, particularly for technologically advanced devices. Imports, estimated at $8.6 billion, were more than double the country’s exports and have been growing at a compound annual growth rate of 7.1%. Electro-medical equipment alone accounted for nearly 60% of these imports.
Export Paradox
India’s strength in exports lies in consumables, which comprised nearly 47% of total exports between April and September of FY25. According to Rubix Data Sciences, the industry is valued at $15.2 billion in 2025 and is expected to grow at a CAGR of 26.9%, reaching $50.1 billion by 2030. Currently, India ranks as the fourth-largest medical devices market in Asia and among the top 20 globally, with around 800 domestic medical device manufacturers. The medical devices sector has experienced a rise in private equity and venture capital funding, increasing from $56 million in 2022 to $137 million in 2024.
Several factors are driving demand for both affordable mass-use devices: rising income levels, expanding health insurance coverage, enhanced healthcare infrastructure, and the growth of medical tourism. India excels in cost-efficient manufacturing, large-scale production, and price competitiveness, especially in low- to mid-technology products. Significant growth has also been fueled by initiatives such as the National Medical Devices Policy, the Production-Linked Incentive Scheme, MedTech Mitra, and the Scheme for Promotion of Medical Devices Parks.
Policy Catalysts
Key states such as Uttar Pradesh, Maharashtra, Haryana, and Karnataka are crucial to the industry’s expansion, offering shared infrastructure, skilled labour, and supplier networks. This is particularly beneficial for small and mid-sized manufacturers, notes the Rubix Data Sciences report.