Can Policy Reforms & Investments Trigger India's MedTech MAKEOVER?

India's MedTech sector has long been import-dependent. The Centre is now working to change this by positioning the country as an export-oriented manufacturing hub. A series of policies and investments have been introduced to support this shift. Have these made an impact? What steps are necessary to strengthen India's position in the global medical technology (MedTech) landscape? Let's find out.

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India stands as the fourth-largest medical devices market in Asia, trailing only Japan, China, and South Korea, and is counted among the top 20 markets worldwide. The sector is broadly categorised into five key segments: electronic equipment (56 per cent), disposables and consumables (26.5 per cent), in-vitro diagnostics (8.1 per cent), implants (7.1 per cent), and surgical instruments (2.3 per cent). (Source: Invest India)

Most domestic manufacturers are concentrated in the disposables and consumables segment, primarily serving local demand. In contrast, high-end categories such as electronic equipment remain dominated by multinational companies. The domestic industry comprises around 800 manufacturers, with production still focused on a limited set of product areas.

In 2023-24, India's medical device exports crossed $4 billion, which is an impressive number on its own, but compared to imports which stood at nearly double, at $8.1 billion, it highlights the country's continued reliance on foreign medical technologies, with nearly 80 per cent of its medical device requirements still met through imports.

To address this imbalance and expand domestic manufacturing capacity, the government has set a goal to reduce import dependence to below 50 per cent over the next five years and has announced a slew of initiatives, investments, and incentives.

Government Initiatives: Have they moved the needle?