Health and Medical Equipment and Devices: How India Can Move from Import Dependency to Being a Global Manufacturing Hub

India’s healthcare sector is growing rapidly, but its reliance on imported medical equipment remains a major challenge. Over 80% of medical devices- ranging from basic thermometers to high-end MRI machines-are brought in from other countries, mainly China and the U.S. This dependence not only increases costs but also slows down access to critical healthcare solutions. However, India has the potential to change this. With the right policies, investment in local manufacturing, and better industry support, India could become a global hub for medical device production.

The demand for medical devices in India is rising, driven by an aging population, an increase in chronic illnesses like diabetes and heart disease, and better healthcare access. Yet, most Indian manufacturers focus on low-tech products, leaving the high-tech sector dependent on imports. The government has introduced initiatives like Make in India and the Production Linked Incentive (PLI) Scheme to encourage local manufacturing, but progress has been slow.

There are several roadblocks to making India self-sufficient in medical equipment. A weak research and development (R&D) system, high production costs, outdated regulations, and a lack of skilled professionals make it difficult for local companies to compete with global manufacturers. The report suggests a few key solutions:

• Encouraging partnerships between research institutions and medical companies
• Providing financial incentives for local production
• Developing dedicated medical device parks to improve supply chains
• Simplifying regulatory processes to speed up innovation and approvals

If India takes bold steps to invest in its medical device industry, it could not only meet its own growing demand but also become a major exporter. Government-backed projects like the Andhra Pradesh MedTech Zone (AMTZ) and the National Medical Device Policy 2017 are promising starts, but a stronger push from both policymakers and private companies is needed to make India a true global player in the medical device industry.

Keywords: Medical Devices, Import Dependency, Manufacturing Hub, Health Sector, Medical Equipment, Investment, Innovation, Production Linked, Incentive, Technology Transfer, Make in India, MedTech Zone