Global Market: India

India’s MedTech industry is undergoing a high velocity transformation, fueled by population growth, increasing chronic disease, and proactive policy support. Yet the market remains import dominant, relying on foreign manufacturers for close to 80% of medical devices particularly advanced technologies.

Population (24’): 1476.626 million GDP per Capital: $ 2,818

Life Expectancy: 80.9 yrs Currency: Indian Rupee

MedTech Maturity level: Rapidly growing

Population Dynamics: Most populous country, youthful

Health System Structure

• Governance model: Under the tax-financed public health system, government health services are available to all citizens. Due to trouble with accessibility, many households seek private care and pay out-of-pocket.

  Private health insurance, while available, has limited market penetration and still requires patients to pay out of pocket at the point of service.

  Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana or PM-JAY, launched in 2018, is a tax financed National Health Protection Scheme for low-income people, allowing for cashless secondary and tertiary services in private facilities.
  

• Coverage model: All services provided at government facilities are delivered free of charge. Coverage under schemes such as the Central Government Health Scheme and Employees State Insurance is also largely free.

  Central and state governments manage the public sector which includes the following;

  • Primary healthcare services provided through primary health centers and first point of contact for patients

  • Secondary care, includes acute and specialist services and are provided by the district hospitals

  • Tertiary care, which includes specialty and super-specialty services. These services a provided by medical colleges

Reimbursement Environment

• Reimbursement mechanisms: Regulatory approval/registration with Central Drug Standard Control Organization (CDSCO). Reimbursement for medical devices focuses mainly on quantity and less on patient outcomes

• HTA maturity: Health Technology Assessment in India (HTAIn ) is in it’s early stages with growing influence.

• Pricing controls: Prices are governed through annual global budgets or a combination of global budgets and performance‑based payment models. County councils and municipalities are legally required to establish these budgets and ensure that their healthcare activities remain financially balanced. Medical device reimbursement is included in hospital funding.

• Time to reimbursement: There is no published standardized timeline to reimbursement for medical devices in Sweden.

• Coding classification: Sweden uses the NordDRG case‑mix classification system as the foundation for DRG‑based reimbursement, although individual regions adapt the system within their own budgeting and payment frameworks

Value Drivers for Medical Technology

• Clinical and Economic evidence expectations: Current market focuses on low cost options, placing minimal emphasis on long-term clinical outcomes. Even so, demonstrating long-term patient outcomes helps manufacturers articulate value and positions them well as evidence based approaches gradually expand.

• Innovation appetite: High - the Government priorities are focused on boosting India’s global global market share and accelerating exports

• Local manufacturing incentives: The government of India has made great efforts to advance local manufacturing with aspiration to advance the sector and reduce import dependence and has taken multiple pathways;

  • Infrastructure - Development of medical technology parks in multiple regions

  • Product linked financial incentives

  • Offering government grants for promoting innovation

  • Setting up of National Institute of Pharmaceutical Education and Research to up-skill the nation

• Digital readiness: Digital healthcare has expanded rapidly since COVID-19, and is expected to create significant opportunities in the years ahead

Population & Demographic Baseline

• Population size: 1476.626 million

• Age distribution: 8.1% 65+, 40% under 25

• Disease burden: 41.7% of the population has at least one chronic disease

• Healthcare spend per capital (23’): $84.69

• Healthcare workforce density (20’):

  • Practicing Physicians per 1,000: 0.8

  • Nurses per 1,000: 1.5

  • Hospital beds per 1,000: 0.5

Economic Standing

Past

• GDP growth patterns: sustained growth, increasing from 1.34 trillion in 2019 to 3.9 trillion in 2024

• Healthcare spending as % of GDP: stable with a slight downwards trend from 4.11 in 2000 to 3.34 in 2010 and 3.31 in 2022

• Import vs local production trends: Imports of medical technologies have surged, driven by rapidly rising demand.

Present

• Current GDP and stability (25): 4.13 trillion, with FY27 growth projection of 6.8 -7.2%

• Healthcare budget priorities: A focus on local manufacturing, healthcare infrastructure, and strengthening the healthcare workforce

Future

• Demographic pressure scenarios: India’s population is expected to continue growing , with projection indicating a peak between 2060 and 2064. As life expectancy increases, the proportion of adults aged 65+ will grow substantially

• Expected policy changes: The policy landscape is undergoing a major shift, aiming to strengthen local manufacturing, expand healthcare infrastructure, and accelerate innovation across the MedTech sector

Regional Opportunity & Risk Summary

According to International Trade Association (ITA), India’s global market share of medical devices is expected to rise from 1.65% to 10-12% over the next 25 years. It’s expected that this growth will be supported by expanding healthcare infrastructure and greater demand for advanced medical technologies.

• Market attractiveness drivers: A combination of proactive government initiatives, demographic momentum, and strong economic growth positions India as a highly attractive market for MedTech companies. The following points highlight major drivers, though the list is not comprehensive;

  • India continues to rely on imports for a large share of its medical devices as “make in India” initiatives take root

  • Continual changes in health policy are expected, and poised to increase health insurance market penetration and direct additional government spending towards healthcare as the population grows in both size and age.

  • A rise in prevalence of chronic disease will continue to drive demand for advanced medical technology

  • India’s expanding middle class, along with rising incomes, has increased willingness to invest in healthcare, driving demand for more advanced medical technologies
    

• Key barriers to product entry:

  • “Make in India” initiatives are prompting foreign companies to establish local manufacturing operations to protect and grow market share

  • India’s Import duties and health taxes significantly influence product pricing and reduce competitiveness against local manufacturers

  • Non local/ foreign companies must appoint a local agent or manufacturer for interface with CDSCO and ensure regulatory compliance
    

Strategic Market Entry Recommendations

• Product adoption in India is deeply relationship driven. Establishing trusted local partners before market entry is essential to navigate clinical networks, distribution channels, and decision‑making pathways

• Local competition will continue to strengthen, supported by government incentives and manufacturing policies. Thorough market research and flexible entry strategies are critical to positioning your technology effectively and responding to rapid shifts in the competitive landscape

• India’s medtech policies are expected to continue evolving as the market matures. Staying up to date on policy development is vital in order to anticipate market needs and adjust your strategy

In conclusion, India’s Medtech market is evolving quickly, and early movers are best positioned to shape it. Those who enter now can gain substantial market share, leverage policy incentives, and contribute to building the systems and foundations that will define the market’s trajectory.