India Emerges as Asia's 4th Largest Medical Devices Market with 15% CAGR

The medical devices market ranks as the fourth largest in Asia, following Japan, China, and South Korea, and is among the top twenty medical devices markets globally, expanding at a compound annual growth rate (CAGR) of 15 percent. The production linked incentive (PLI) scheme aimed at enhancing local manufacturing of medical devices (PLI MD), introduced by the Central government to stimulate domestic production and draw substantial investments into the medical devices industry, has achieved nearly 78 percent of the promised investment to date.

As per data from the ministry of chemicals and fertilizers, the pledged investment for the Scheme is Rs. 1,356.94, of which an investment of Rs. 1,057.47 crore has been received. The total sales achieved by the applicants under the scheme amount to Rs. 8,039.63 crore, encompassing exports valued at Rs. 3,844.01 crore, as of September, 2024.

On March 20, 2020, the Union Cabinet sanctioned the proposal for the PLI scheme aimed at medical devices, intending to enhance domestic production and draw substantial investments into the medical devices industry. The scheme's production period spans from FY 2020-2021 to FY 2027-28, with an overall financial allocation of Rs 3,420 crore.

"The scheme provides for financial incentive to selected companies at the rate of 5% on incremental sales of medical devices manufactured in India and covered under the four target segments of the scheme, for a period of five years. 32 applicants have been selected under the scheme," says Anupriya Patel, the minister of state in the ministry of chemicals and fertilisers.