India’s medical devices industry likely to triple to $50 billion by 2030: Rubix Industry Insights

New Delhi: India’s medical devices industry, a sunrise sector within the healthcare ecosystem, is witnessing robust, policy-led growth driven by government initiatives, rising investments, and shifting global trade dynamics, according to the latest Rubix Industry Insights by Rubix Data Sciences.

The findings gain added significance against the backdrop of Union Budget FY2026–27’s renewed focus on medical tourism and bio-pharma research, as well as the recently announced India–US interim trade agreement.

Valued at $15.2 billion in FY2025, India’s medical devices industry is projected to expand nearly threefold to $50.1 billion by FY2030, registering a CAGR of 26.9% during FY2025–FY2030. India currently ranks as the fourth-largest medical devices market in Asia and among the top 20 globally. Growth is being propelled by targeted government initiatives such as the National Medical Devices Policy (NMDP), the Production-Linked Incentive (PLI) Scheme, the Scheme for Promotion of Medical Devices Parks, and MedTech Mitra, which are strengthening domestic manufacturing and innovation capabilities.

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

Importantly, 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.

Medical device exports reached $4.1 billion in FY2025, registering a CAGR of around 10% during FY2023–FY2025. The government aims to increase India’s global market share from 1.6% to around 10–12% in the coming years. The United States and Germany remain key export destinations, while the US and China dominate India’s import basket.

Despite improving export momentum, the study notes that the sector remains highly import-dependent, with 70%–80% of domestic demand met through imports, especially for technologically advanced devices. Imports were more than double exports at an estimated $8.6 billion in FY2025, growing at a CAGR of 7.1% during FY2023–FY2025.

India’s export strength continues to lie in consumables, which accounted for nearly 47% of exports between April and September FY2025, reflecting the country’s advantages in cost-efficient manufacturing, scale, and price competitiveness in low- to mid-technology products. In contrast, electro-medical equipment accounted for nearly 60% of imports in FY2025 due to continued reliance on advanced, technology-intensive devices.

The domestic manufacturing base comprises approximately 800 medical device manufacturers, operating in a broad but fragmented landscape. Encouragingly, investor interest has strengthened, with the average PE/VC deal size increasing nearly 2.5 times, from $56 million in CY2022 to $137 million in CY2024, signalling growing confidence in the sector’s long-term potential.

The report further notes that Uttar Pradesh, Maharashtra, Haryana, and Karnataka are playing a critical role in strengthening the industry by enabling shared infrastructure, skilled manpower, and supplier networks, particularly benefiting small and mid-sized manufacturers.