India's MedTech industry set to reach Rs 4.15 lakh crore by 2030, says EY

India's MedTech sector, valued at approximately Rs 99,600 crore in 2023, is projected to grow to Rs 4.15 lakh crore by 2030, with a compound annual growth rate (CAGR) of 20.1% from 2020 to 2030, said EY Parthenon in a report.

This expansion, per the report, is driven by evolving disease patterns, a growing emphasis on preventive care, an ageing population, and the increasing adoption of alternative care models.

These factors are fuelling demand for medical devices such as wearables, remote monitoring systems, and technologies for disease management and early screening.

The report titled “India’s MedTech Industry: The Renaissance of a Sector,” noted that over 70% of innovations in Indian MedTech start-ups are underpinned by digital integration. Start-ups are leveraging technologies like artificial intelligence (AI), the Internet of Things (IoT), and cloud computing to develop portable devices, remote monitoring systems, and screening tools designed to improve healthcare access.

Among Indian MedTech start-ups, 79% of innovations are centred around medical technology solutions, with 63% of these integrating digital advancements. An additional 21% are exclusively focused on digital solutions, the report said.

Government policies have been instrumental in supporting this growth. Reforms such as the Medical Device Rules, 2017 and the National Medical Device Policy, 2023, along with initiatives like the Production Linked Incentive (PLI) scheme and the creation of medical device parks, aim to reduce import dependence and bolster domestic manufacturing.

These efforts are enabling India to transition from an import-driven market to a potential global hub for MedTech innovation and manufacturing, the report further said.

 “The growth of India’s MedTech sector provides an opportunity to redefine healthcare on a global scale. The integration of digital health technologies and the move towards personalised care are steps that will enhance healthcare accessibility and efficiency for patients,” said Suresh Subramanian, National Lifesciences Leader at EY Parthenon India.

He further highlighted the role of investments, partnerships, and government initiatives in driving the sector’s progress.

The report analysed 100 MedTech start-ups—50 Indian and 50 global—and identified shared innovation themes, including advancements in early disease detection, home-based care, minimally invasive techniques, and the use of advanced materials. The industry is progressing through incremental improvements, significant innovations, and breakthrough technologies, with a focus on safety, efficacy, accessibility, and affordability, the report said.

India’s MedTech ecosystem benefits from government interventions, an active start-up environment, advanced digital capabilities, and investments from private equity, venture capital, and foreign direct investment. These factors are contributing to the sector’s growth and evolution, said the report.

According to the report, global players are also making significant contributions. Multinational corporations are transferring intellectual property and capabilities to India through Global Capability Centres (GCCs) and forming partnerships with contract manufacturing organisations (CMOs). Indian companies, meanwhile, are expanding their global footprint by offering cost-effective solutions and creating innovative products to enter international markets.