India's MedTech Sector Poised for Global Leadership

A recent report highlights the potential of India's MedTech industry to become a global leader in manufacturing and innovation. With a current market value of $16 billion, the sector aims to reduce import dependency and increase its share of the global market significantly. The report outlines strategic initiatives to overcome existing challenges and emphasizes the importance of collaboration among government, industry, and academia. As India strives to meet domestic demand, it is poised to establish itself as a trusted hub for MedTech advancements.

By Narendra Chaudhary Aug 29, 2025, 16:26 IST

Strategic Growth in India's MedTech Industry

New Delhi, Aug 29: A recent report emphasizes the importance of India's MedTech sector in reducing import reliance and enhancing its global market presence.

Produced by the Confederation of Indian Industry (CII) in partnership with Boston Consulting Group (BCG), the report outlines the potential for India to become a leading hub for MedTech manufacturing and innovation.

The findings were presented by Amit Agrawal, Secretary of the Department of Pharmaceuticals, during the opening session of the 17th CII Global MedTech Summit.

Currently valued at around $16 billion, India's MedTech industry represents only about 2% of the global market, which is approximately $680 billion.

According to the report, the government's vision for Viksit Bharat 2047 has positioned this sector as a crucial element of the 'Make in India' initiative, aiming to lower import dependency to below 50% and increase India's global market share to 10-12%.

Significant advancements have been made in enhancing MedTech manufacturing capabilities, including the establishment of four MedTech parks, with the Andhra Pradesh MedTech Zone (AMTZ) being the most developed. Financial incentives like the Production-Linked Incentive (PLI) scheme and state-level tax benefits have also contributed to this growth.

Additionally, initiatives to upskill the workforce through institutions like NIPER have fostered talent development in the MedTech field, leading to increased private investments from both domestic and international companies, which has reduced import dependency from about 80% in FY2022 to nearly 60% in FY2024.

However, the report highlights several challenges that must be addressed to achieve manufacturing excellence, including gaps in the ecosystem for advanced devices, regulatory hurdles, a shortage of skilled labor, underutilization of MedTech parks, and limited participation from MSMEs in incentive programs.

To overcome these obstacles, the report recommends strategic initiatives such as refining the PLI scheme to encourage MSME involvement, adjusting import duties, and creating a robust raw material ecosystem. It also suggests attracting multinational corporations to establish manufacturing and R&D centers in India and enhancing the capabilities of MedTech parks through collaborative innovation labs and shared facilities.

"Through a united effort from government, industry, and academia, India can not only satisfy its domestic needs but also emerge as a reliable global center for MedTech manufacturing and innovation,” the report concludes.