India’s Medical Devices Sector Set for USD 50.1 Billion Milestone by 2030

India’s medical devices industry is projected to reach USD 50.1 billion by 2030, registering a CAGR of 26.9 per cent from the current valuation of USD 15.2 billion in 2025, according to a report by Rubix Data Sciences on Wednesday. 

Currently, India ranks the fourth-largest medical devices market in Asia and among the top 20 globally.

According to Rubix Data Sciences, growth is being propelled by government initiatives such as National Medical Devices Policy (NMDP), Production-Linked Incentive (PLI) Scheme, Scheme for Promotion of Medical Devices Parks, and MedTech Mitra.

The study assumes greater significance in the light of the Union Budget-FY27’s renewed focus on bio-pharma research in the country.

What does the report highlight?

The report highlights that rising income levels, expanding health insurance penetration, increasing healthcare infrastructure and the growth of medical tourism, are boosting demand for both affordable mass-use devices and advanced solutions for specialised care.

Medical devices exports have reached USD 4.1 billion in FY25 with the government targeting to raise India’s global market share from 1.6% to around 12% in the coming years. The US and Germany are the key export destinations, while the US and China are major import sources.

The study shows that despite strong export performance, the sector remains largely import-dependent, with 70-80% of domestic demand being met through imports, particularly for technologically-advanced devices.

As compared to exports, imports were more than double at an estimated USD 8.6 billion, growing at a 7.1% CAGR over the same period.

The report highlighted that India’s export strength is in consumables, which accounted for nearly 47% of exports between April-September FY25, and shows India’s strengths in cost-efficient manufacturing, scale production, and price competitiveness in low- to mid-technology products.

In contrast, the report says, electro-medical equipment accounted for nearly 60% of imports, driven by India’s continued reliance on advanced, technology-intensive devices.

What is the impact of the India-US interim trade agreement?

The report flags the India–US interim trade agreement as a near-term inflection point for the sector. The reduction in US import tariffs on Indian medical devices from 50% to 18% is expected to improve export competitiveness for Indian manufacturers, particularly in high-volume, price-sensitive segments, enhancing India’s positioning relative to competing suppliers such as China.

At the same time, India’s commitment to easing non-tariff barriers for US medical devices could intensify competitive pressure on domestic players in high-end and technology-intensive segments, where local manufacturing capabilities remain limited. The net impact on the industry, the report notes, will depend on regulatory reciprocity and the pace of domestic capability-building.

The domestic manufacturing base consists of approximately 800 medical device manufacturers in a broad but fragmented industry landscape. The report reveals that the average deal size for PE/VC funding has increased nearly 2.5 times from $56 million in 2022 to $137 million in 2024.

Four states, namely UP, Maharashtra, Haryana, and Karnataka are playing a critical role in strengthening the industry by enabling shared infrastructure, skilled manpower, and supplier networks, particularly for small and mid-sized manufacturers, according to the report.

(With inputs from ANI)