India is emerging as a strong destination for global medical device manufacturing and could build a MedTech contract manufacturing market worth nearly $7 billion by 2035, according to a joint report released by Boston Consulting Group, Association of Indian Medical Device Industry, and Kalam Institute of Health Technology.
The report, titled Poised for Takeoff: MedTech in India, projects that India’s overall MedTech market could grow from around $20 billion at present to nearly $83-89 billion by 2035. The expected growth will largely be supported by rising domestic demand, exports, and increasing opportunities in contract manufacturing.
India’s role in local MedTech production has expanded significantly over the last few years. The share of domestically manufactured products in India’s MedTech demand has increased from nearly 20% in 2022 to around 45% in 2025. Growth has been particularly visible in areas such as diagnostics, consumables, and hospital equipment as the country reduces dependence on imports.
The report noted that India’s MedTech contract development and manufacturing organisation (CDMO) sector is still at an early stage but holds major long-term potential. As global medical device companies continue shifting supply chains away from China, India is increasingly being viewed as an alternative manufacturing base.
Competitive labour costs are also strengthening India’s position. Manufacturing expenses in India are estimated to be 60-80% lower than in the United States and nearly 40-50% cheaper than China. In addition, ongoing free trade agreements with countries including the UK, New Zealand, and Oman could further improve export opportunities for Indian manufacturers.
At present, India contributes only about $4 billion to the global MedTech export market, despite the worldwide industry being valued at nearly $670-680 billion in 2025. Consumable products currently account for the largest share of exports, while higher-value categories such as implants, diagnostics, and advanced medical devices are witnessing faster growth.
The study also highlighted a global shift toward outsourcing components, sub-assemblies, and value-added manufacturing services. This trend could open new opportunities for Indian firms in areas like imaging equipment, disposable medical products, implants, and diagnostic technologies.
However, the report warned that several structural challenges continue to slow the sector’s progress. India still relies heavily on imports for key raw materials and critical components. Other hurdles include fragmented testing infrastructure, regulatory delays, and relatively low investment in research and development. According to the report, Indian MedTech companies currently spend only 2-4% of their revenue on R&D, compared to 15-20% in China.
To accelerate growth, the report recommended faster regulatory clearances, stronger incentives for value-added manufacturing, better testing facilities, and focused efforts to attract global OEMs and CDMOs to India.
India’s MedTech sector is gradually positioning itself as a major global manufacturing destination. With rising domestic production, cost advantages, and growing export potential, the country could play a much larger role in the global medical devices industry over the next decade if policy and infrastructure challenges are addressed effectively.