50% of AI-enabled healthcare devices are now made in India: Philips

Dutch medical technology company Royal Philips is scaling up India as a key manufacturing and technology hub, with a growing share of its AI-enabled healthcare devices now produced in the country.

“One out of two AI-enabled devices are produced out of India,” Ozlem Fidanci, Chief of the International Region at Royal Philips, told Business Today, underlining the country’s growing role in the company’s global manufacturing and innovation strategy.

India is also central to Philips’ product development and digital capabilities, with more than 80% of its software and digital solutions developed in the country. “The majority of our software and digital solutions in the world are coming from India for India, but also for the world,” Fidanci said.

The company employs over 8,400 people in India, including around 5,000 in Bengaluru focused on software and related technologies. Its Pune facility manufactures mobile surgery systems and MRI components for global markets, with products exported to more than 100 countries.

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Philips has invested around €174 million in India over the past six years across manufacturing, R&D and capability centres, including innovation hubs in Bengaluru, manufacturing operations in Pune, and capability centres in Chennai.

Alongside this expansion, Philips is also addressing supply-side risks in MRI technology by reducing its reliance on helium, a scarce resource facing global constraints.

“Helium is a scarce resource and has become even more important given the geopolitical tensions in the world,” Fidanci said. “Philips is providing MR solutions without refilling of helium, and with very little use of helium, from 7,000 litres to only 7 litres.”

These systems are designed to improve healthcare resilience while reducing dependence on constrained resources. “Healthcare resilience is very important, and Philips is bringing a very relevant technology also to India,” she added.

The company is also advancing a platform-led approach, integrating hardware, software and data systems with AI capabilities. “We would like to connect systems hardware and software with the power of AI in order to bring the best solutions,” Fidanci said.

India’s expanding healthcare market is a key driver of this strategy. The hospital sector is estimated at over $130 billion, according to the India Brand Equity Foundation, while demand for diagnostic services continues to grow, supported by rising insurance coverage and higher incomes.

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However, access to diagnostic infrastructure remains uneven. “Diagnostic equipment is largely available in megacities, but not necessarily everywhere in India. Penetration of this technology is very important,” Fidanci said.

To address this gap, Philips is focusing on Tier-2 and Tier-3 cities. “We need to go to Tier-2 and Tier-3 cities in India to create bigger access to healthcare and technology,” she said.

The India business has seen strong momentum across segments such as diagnostic imaging, patient monitoring and interventional therapies. “Our business in India has been quite dynamic in the last couple of years,” Fidanci said.

Looking ahead, the company expects India to remain a key growth market. “We look at India as a growth market and will continue to grow, regardless of short-term challenges,” she said.