India Medical Device Market Outlook to 2030

India Medical Device Market Overview 

• The India Medical Device market is valued at USD 6.8 Bn, reflecting a strong five-year historical growth, driven by increased healthcare expenditures and supportive government initiatives like the “Make in India” campaign, which encourages local manufacturing. Rising demand for advanced diagnostic equipment and the surge in chronic diseases have further accelerated market growth. The development of digital health solutions and telemedicine during the pandemic has also played a crucial role in driving the market upward.  

• India’s medical device market dominance is concentrated in metropolitan cities such as Delhi, Mumbai, and Bangalore. These cities host advanced healthcare facilities and research centers, offering substantial demand for sophisticated medical equipment. Additionally, the presence of top private hospitals and an increasing trend of medical tourism contribute to the market dominance of these cities. Bangalore stands out due to its growing status as a healthcare innovation hub, while Delhi and Mumbai lead in healthcare services and patient inflows. 

• Artificial Intelligence (AI) is rapidly being integrated into medical devices to enhance diagnostic accuracy and improve patient outcomes. Devices equipped with AI, such as automated radiology systems and AI-assisted robotic surgery tools, are gaining traction in Indian hospitals. In 2023, over 500 hospitals in India adopted AI-based diagnostic systems, with investments from private players like Apollo Hospitals. AI technology is being used to interpret large datasets, speed up diagnosis, and assist in personalized treatment planning. This trend is expected to revolutionize healthcare delivery and boost demand for AI-enabled medical devices. 

India Medical Device Market Segmentation 

By Product Type: The market is segmented by product type into diagnostic devices, therapeutic devices, surgical instruments, and patient monitoring systems. Among these, diagnostic devices hold a dominant market share, attributed to the rising prevalence of chronic diseases and the increasing need for early disease detection. Medical imaging equipment, such as MRI and CT scanners, are in high demand due to their widespread use in identifying health issues ranging from cancer to neurological disorders. 

By Application: Market is also segmented by application into cardiology, neurology, orthopedics, and oncology. Cardiology devices dominate the application segment due to the increasing burden of cardiovascular diseases. The demand for pacemakers, stents, and defibrillators has risen sharply in India, with over 20 million cardiac patients annually, driving growth in this sub-segment. 

India Medical Device Market Competitive Landscape 

The market is dominated by both domestic and international players. Several global leaders have set up manufacturing units in India, while indigenous companies are also expanding their product offerings. The competition is highly consolidated, with established players focusing on R&D investments and strategic partnerships to maintain their market position. 

India Medical Device Industry Analysis 

Growth Drivers 

• Rising Healthcare Spending: India's healthcare spending has consistently increased in recent years, with the government allocating ?86,200 crore for healthcare in the 2023 Union Budget, demonstrating a strong commitment to improving health services. Additionally, out-of-pocket expenditure in healthcare has also surged due to the rising prevalence of chronic diseases. According to the World Bank, India's healthcare expenditure as a percentage of GDP was around 3.6% in 2022. This growing financial commitment by both the public and private sectors is fueling demand for medical devices across the country, including diagnostic and therapeutic devices. 

• Increase in Medical Tourism: Medical tourism in India has grown rapidly, with the country being one of the leading destinations for affordable and high-quality medical treatments. In 2022, India welcomed over 1.4 million medical tourists, generating approximately ?70,000 crore in revenue, according to the Ministry of Health and Family Welfare. This influx is driven by the availability of cutting-edge medical devices and technology, which are critical in areas such as orthopedics, cardiology, and oncology. The growing number of international patients seeking advanced treatments is further boosting the demand for sophisticated medical devices. 

• Government Healthcare Programs: The "Make in India" initiative has significantly bolstered domestic manufacturing of medical devices, reducing dependency on imports. The sector is projected to benefit from policies like the Production Linked Incentive (PLI) scheme, which allocated ?3,420 crore to incentivize local manufacturing between 2020 and 2025. Additionally, Ayushman Bharat, the world’s largest government healthcare scheme, aims to cover over 500 million citizens, increasing the demand for affordable medical devices across the nation. This dual push is transforming India into a global hub for medical device production and innovation. 

Market Challenges 

• High Import Dependency: India remains heavily dependent on imports for advanced medical devices, with around 75-80% of the medical devices in use being imported, as per data from the Department of Pharmaceuticals. This reliance results in high procurement costs and exposure to supply chain disruptions. Imports from countries like the USA, Germany, and China constitute a significant portion of the market, limiting the growth of domestic manufacturers. The Medical Technology Association of India (MTaI) highlights that devices like MRI scanners and pacemakers are predominantly sourced from abroad, impacting the local market's ability to scale quickly. 

• Regulatory Delays: India's medical device industry faces significant regulatory challenges, particularly concerning product approvals and compliance with standards. Delays in obtaining approvals from the Central Drugs Standard Control Organization (CDSCO) can slow down the entry of new devices into the market. According to a 2023 report by Invest India, it can take up to two years for certain devices to receive necessary clearances, hampering innovation and market penetration. Additionally, evolving regulations often create uncertainty for manufacturers, deterring potential investments in the sector and restricting the availability of cutting-edge medical technology. 

India Medical Device Market Future Outlook 

Over the next five years, the India medical device market is expected to demonstrate robust growth, propelled by increasing government support for healthcare infrastructure development, advancements in medical technologies, and the rising geriatric population. The shift toward digital health and remote patient monitoring will also drive market expansion, with innovations in AI-driven diagnostic tools expected to gain prominence. Moreover, growing private investments in the healthcare sector will further solidify India’s position as a key market for medical devices. 

Future Market Opportunities 

• Increasing Adoption of Digital Health Devices: Digital health devices, such as wearable fitness trackers and remote monitoring systems, are gaining popularity in India, driven by rising awareness and the need for better chronic disease management. According to NITI Aayog, the number of digital health device users in India exceeded 100 million by 2023, with a projected increase in demand for blood pressure monitors, glucometers, and portable ECG devices. The Indian government's push for telemedicine and digital health platforms through initiatives like the National Digital Health Mission (NDHM) further supports the adoption of these devices, opening new growth avenues for manufacturers. 
• Public-Private Partnerships: Public-private partnerships (PPPs) in healthcare have emerged as a key driver for the medical device market in India. Recent collaborations between private players and state governments, such as the Andhra Pradesh Health City project, which attracted over ?1,200 crore in investments, have led to the establishment of advanced healthcare facilities. These partnerships foster innovation and facilitate access to high-end medical devices, especially in underserved regions. The involvement of the private sector ensures the deployment of cutting-edge technology, while the government provides regulatory support and infrastructure, creating a conducive environment for market growth.