For decades, Indian hospitals were showrooms for Western medical technology. The CT scanner? Siemens. The ventilator? GE Healthcare. The cardiac stent keeping a patient alive? Abbott or Medtronic.
This wasn’t just about purchasing preferences. It reflected a deeply embedded assumption that India could manufacture generic pharmaceuticals at scale, but sophisticated medical devices were beyond reach. The country’s role was clear – import, distribute, consume. Innovation happened elsewhere.
Then something shifted. In 2017, when the government slashed cardiac stent prices by 74%-85% overnight, multinationals threatened to exit and industry observers predicted collapse. Instead, Indian manufacturers didn’t just survive, they captured market leadership. Today, many of these manufacturers export to Europe, compete on clinical outcomes, and attract billion-dollar investor interests.
The stent story was just the opening act. What’s unfolding now is a complete reimagining of India’s position in global medtech, from importer to manufacturer, from price-taker to innovator, from dependency to self-reliance. Manufacturing plants that didn’t exist three years ago now produce sophisticated devices previously imported entirely.
The question is whether India will merely grow a larger market, or fundamentally transform into a manufacturing and innovation powerhouse. The next five years will determine whether this becomes India’s pharmaceutical export story 2.0 or remains another case of perpetual potential that never quite materialises.
MedTech Market is Surging Ahead with Robust Growth Trajectories Both Domestically and Globally
Source: Precedence Research
Globally, the medtech market stands at $679 billion today, projected to reach $908 billion by 2030. The US commands 43% of the global share, Europe another 32%, and Asia Pacific 19%.
Source: Globe Newswire, IBEF
Against that global backdrop, India’s medtech market hit $14 billion in 2024 , a mere ~2% of the global market but is projected to grow to $50 billion by 2030. However, the aggregate numbers miss the real story though.
Source: BCG
Medical device imports reached $8.1 billion in 2023-24, while exports stood at $3.8 billion. Though imports have reduced from 80% in 2021-22 to 60% in 2023-24, this import dependency is not uniform. High-end equipment (MRI machines, CT scanners, etc) remains 90%+ imported, while consumables (catheters, syringes) have reached import-export parity.
The United States, China, and Germany collectively account for over 46% of imports, reflecting India’s reliance on advanced economies for sophisticated devices.
This dependency creates both risk and opportunity. Supply chain disruptions during COVID-19 exposed India’s vulnerability. Yet the opportunity is equally compelling, as India develops manufacturing capabilities, the TAM expands beyond domestic consumption to export opportunities in Africa, Southeast Asia, and even developed markets where Indian manufacturers compete on cost-quality trade-offs, thereby inching closer to its target of having 10-12% of the market share in the next 25 years.
Multifaceted Drivers are Propelling Demand for Innovative MedTech Solutions Across Healthcare Ecosystems
India’s accelerating medtech adoption is being propelled by a convergence of demographic, economic, and policy forces. Rising chronic diseases, rapid digitalisation, an expanding hospital footprint, and strong government support are reshaping demand patterns across care settings.
Rising Chronic Diseases and an Aging Population
The escalating burden of non-communicable diseases (NCDs) is a primary catalyst, as chronic conditions like diabetes, cardiovascular diseases, and cancer account for 66% of annual deaths in India and drive substantial out-of-pocket healthcare expenditures.By 2050, one in five Indians will be above 60, amplifying demand for high precision monitoring devices and care equipments.
MedTech innovations, such as continuous glucose monitors, smart home health monitors, cardiac stents, and wearable ECG devices, are transforming treatment by enabling real-time monitoring and personalised care, reducing the overall strain on the healthcare system.
Economic and Accessibility Factors
Infrastructure Expansion: The rapid growth in healthcare facilities, including new hospitals and diagnostic centres in Tier 2 and 3 cities, is addressing resource gaps. Supported by the Ayushman Bharat Digital Mission, which has created over 799 million Ayushman Bharat Health Accounts as of August 2025, this infrastructure push is enabling interoperable digital health services and driving medtech adoption in underserved areas.Medical Tourism Surge: India already attracts more than 2 million medical tourists from over 75 countries. These patients demand world-class equipment and interventions, pushing Indian hospitals to invest in cutting-edge technology while simultaneously showcasing India’s capabilities to international audiences.
Government Support and Supply Chain Diversification
100% FDI Allowance: Since 2017, 100% Foreign Direct Investment (FDI) has been permitted through the automatic route in the medical devices sector, attracting global players like GE Healthcare and Siemens to set up facilities for equipment such as CT scanners, MRI machines, and ultrasound devices. As of March 2025, FDI inflows in medical and surgical appliances reached $3.9 billion.Promotion of Medical Device Parks: This initiative supports the development of four dedicated parks in states like Himachal Pradesh, Madhya Pradesh, Tamil Nadu, and Uttar Pradesh, with an additional park under development in Panipat, Haryana. These parks provide CoE, R&D centres, testing labs, and shared infrastructure to reduce costs and foster collaboration.Production Linked Incentive Scheme (PLI): Launched in 2020 with a Rs 3.4k crore outlay, this initiative incentivises domestic manufacturing of medical devices (5% of incremental sales) through performance-based financial rewards, targeting key segments like cancer care and radiology. As of 2025, it has enabled 21 projects to produce 54 unique devices, including MRI machines and CT scanners, helping reduce import reliance while boosting local production and exportsChina+1 Strategy: Post-COVID supply chain paranoia made hospital procurement committees globally desperate to de-risk China dependency. Companies aren’t just accessing the Indian market anymore, they’re using India as an export base. Investments such as Medtronic’s US$350 million Hyderabad R&D centre, Siemens’ Rs 1.3k crore Bengaluru expansion, and Omron’s new Tamil Nadu facility signal confidence in India as a strategic hub and not merely a local market.
Despite Strong Tailwinds, Indian MedTech Must Overcome Key Barriers to Unlock Its Next Phase of Growth
While the sector is on a promising trajectory, persistent challenges such as high import reliance, talent shortages, and regulatory hurdles threaten to cap its potential. Addressing these through targeted reforms is essential to achieve the $50 billion market aspiration by 2030 and build a globally competitive ecosystem.
Source: WIPO statistics databaseLagging Innovation and Patent Activity: India accounts for only ~1.5% of global medtech patents, with low R&D investment (under 1% of revenue). This limits India’s ability to compete in IP-heavy segments such as implants, diagnostics, and imaging, where the US and China dominate with over 20,000 patents annually.High Raw Material Import Dependence: Despite progress in low-value consumables, India still imports 70-85% of components for high-value devices, especially semiconductors, polymers, sensors, and precision electronics. This exposes manufacturers to global price volatility and prolongs lead timesTalent Bottleneck: India produces far fewer biomedical engineers and medtech R&D specialists than required, particularly in high-complexity domains like medical robotics and AI-integrated devices. This isn’t a short-term hiring challenge, its a decade-long talent pipeline issue.Regulatory and Compliance Challenges: Lengthy approval processes and policy uncertainty delay market entry for startups, extending time-to-market by 12 to 18 months under CDSCO regulations.
By tackling these barriers through public-private partnerships and policy enhancements, India can transform vulnerabilities into strengths, paving the way for sustainable growth and innovation in medtech.
The Market Landscape is Evolving with a Diverse Array of Players, Segments, and Competitive Dynamics
India’s MedTech sector is not a monolithic market but a collection of distinct product categories, each with its own demand drivers, manufacturing maturity, and competitive intensity. These segments are scaling at different speeds, creating a diverse and rapidly shifting industry landscape.
Source: EYElectronic Equipment: Domestic players are steadily climbing the value chain in MRI/CT, ultrasound, and monitoring systems as hospital expansion and import-substitution policies drive demand for locally engineered, mid-range equipment.Disposables & Consumables: A high-volume, globally competitive category where Indian manufacturers leverage cost efficiency, large-scale manufacturing, and strong certifications to dominate exports while servicing rising domestic demand.In-Vitro Diagnostics (IVD): The rise in automated testing and chronic disease screening is boosting the IVD market, and companies earn consistent recurring revenue because hospitals regularly purchase reagents tied to their analyzers.Implants: Demand for orthopaedic, cardiac, and dental implants is rising rapidly as procedures increase, enabling domestic companies to compete with global brands through improved biomaterials and precision manufacturingSurgical Instruments: Indian firms are expanding capabilities in endoscopy, sutures, and minimally invasive tools, positioning themselves as reliable, cost-effective suppliers for both domestic and international markets.AI in MedTech: AI-led imaging and diagnostic solutions are scaling quickly, addressing specialist shortages and high patient loads through validated, clinical-grade decision-support tools.
M&A and Fundraises are Gaining Traction as Capital Flows into High-Potential MedTech Ventures
Investor appetite for Indian MedTech has strengthened meaningfully over the past few years, reflected in both strategic acquisitions and rising venture and growth-stage capital deployment. Private equity investors are gravitating toward segments with strong regulatory moats where scale, certifications, and distribution networks create defensible competitive advantages.
Source: TracxnSource: Tracxn
India’s leading pharmaceutical companies are now making strategic bets on medtech, signaling a broader sectoral shift pointing to a deliberate diversification strategy.
This activity sets the stage for a more vibrant M&A landscape ahead. As domestic players mature and seek global expansion, consolidation will become a strategic pathway to broaden portfolios, deepen R&D capabilities, and accelerate compliance with international standards. Meanwhile, venture and growth funding will increasingly target AI-driven diagnostics, home-care technologies, and device categories benefiting from import-substitution tailwinds.
Charting the Path Forward Requires Strategic Initiatives to Sustain Momentum
India has the opportunity to learn from leading medtech hubs, drawing innovation depth from the US and Germany, manufacturing excellence from Ireland and the Netherlands, and cost-scale advantages from China and Mexico. But this requires addressing specific structural gaps that currently limit the country’s ability to compete globally and move up the value chain.
Enhance policy frameworks and incentives: The PLI scheme can be strengthened through more flexible thresholds for MSMEs, and export-oriented zones can be expanded to make large-scale manufacturing more competitive.Build raw material and infrastructure ecosystems: India needs domestic production of medical-grade polymers, electronics, and sensors, supported by medtech parks that offer access to testing facilities, R&D centres, and prototyping labs.Attract MNC partnerships and R&D: Clear single-window processes and predictable investment rules can encourage global companies to set up R&D and manufacturing hubs, creating opportunities for technology transfer.Streamline regulations and global approvals: Aligning classifications with US FDA and EU MDR can simplify compliance, while faster and more transparent approval pathways can help startups reduce time-to-market.Promote innovation and upskilling: Foster public-private collaborations for device design and establishing training hubs for biomedical skills in academia will create multifold benefits.Increase domestic and international capital participation: A stronger pipeline of medtech focused VC/PE funds and export financing mechanisms can help Indian companies scale and expand overseas.
Collaborative action across government, industry, investors, and academia can propel India’s current momentum, positioning the country as a high-value and innovation-led medtech hub.
As India stands at an inflection point, the sector is rapidly evolving from a dependency-driven market into a credible global force.
Fueled by demographic tailwinds, policy reforms, and a vibrant start-up ecosystem, medtech not only promises to bridge urban-rural divides but also to elevate India on the global stage, much like its pharma success. Yet, realising this potential demands collaborative action, streamlining regulations, scaling innovations, and bolstering supply chains to overcome persistent challenges.
Companies that can navigate regulatory complexity, build IP moats, secure talent, and access capital efficiently will compound their advantages. Those that compete solely on cost will find themselves trapped in low-margin segments with limited exit options.
If you are a founder building in MedTech and are looking to raise capital or explore M&A opportunities, please reach out to udayan@loestro.com. We’d love to have a chat.
LoEstro Advisors is an investment banking firm specializing in sell-side fundraising and M&A advisory, along with a strong consulting arm. Recognized as the #1 financial advisor in education in India, we are the advisor of choice to India’s blue-chip education businesses.
Over the last four years, we have grown to be one of India’s largest (in terms of M&A transactions) homegrown boutique investment banks, with $1.5 bn+ worth of combined deals closed across education, healthcare, consumer, and technology sectors.