As India Dreams of Medical Self Reliance, Global Giants Keep their Grip
By Arunima Rajan
Global suppliers still hold India’s healthcare leash, despite self reliance push
India’s healthcare story is one of grit, ambition, and a relentless pursuit of progress. We’ve seen flashes of brilliance—how the country rose to the COVID-19 challenge, innovating and scaling at breakneck speed. But beneath the triumphs lies a question that refuses to be ignored: Will India truly break free and carve its own path to self-reliance, or will the comforting crutch of global suppliers always hold sway?
The Global Context and Local Aspirations
Globally, the MedTech industry is surging ahead. Valued at $587.6 billion in 2023, it is projected to touch $897 billion by 2028, powered by aging populations, digital health innovations, and the shift toward preventive care. India, too, has shown promise. The MedTech sector here grew to $12 billion in 2023-24, with ambitious projections of $50 billion by 2030. Yet, its share of the global market remains a modest 1.65%.
India’s aspirations for a self-reliant MedTech ecosystem—bolstered by government initiatives like “Make in India” and the Production Linked Incentive (PLI) scheme—are bold but not without challenges. As Dr. Sameer Bhati, Director of Star Imaging and Path Lab Pvt. Ltd., aptly notes, “In 2025, world suppliers continue to play a significant role in the composition of India's healthcare system. Despite the increasing interest in self-reliant India, the healthcare industry still looks heavily toward international cooperation in terms of advanced medicine, pharmaceuticals, and cutting-edge technology.”
A Pandemic-Driven Push
The COVID-19 pandemic tested India’s healthcare supply chain like never before. The country swiftly scaled up production of ventilators, RT-PCR kits, and PPEs. However, the reliance on imports persists, particularly for high-value devices like MRI scanners and surgical robotic systems. According to a 2025 FICCI report, India imports over 75% of its high-value medical devices from the U.S., Germany, and Japan.
This reliance, while indicative of technological gaps, has also enabled better diagnostics and treatment outcomes. Similarly, Active Pharmaceutical Ingredients (APIs)—40% of which are imported from China—remain critical for drug manufacturing.
Exports Tell a Different Story
Interestingly, India is making strides in MedTech exports. In FY 2023-24, exports grew by 13.5%, reaching $3.8 billion. The U.S. remains a key market, with disposables and electronic equipment leading the list. While cost-effective production is India’s hallmark, competing globally will require robust investment in R&D, innovation, and manufacturing excellence.
Highlighting this reality, Vishal Goel, MD, Rx Propellant, says: “The contributions of global suppliers to India’s healthcare sector have been undeniably substantial. This ongoing reliance underscores their role in bridging technological gaps, while India’s growing MedTech exports indicate a rising prominence in the global market.”
The Role of Global Suppliers
India’s dependence on global players isn’t limited to equipment. As Pavan Choudary, Chairman of the Medical Technology Association of India (MTaI), emphasises, “More than 70 percent of medical equipment and devices used in India are imported. The global companies similarly have a predominant position in skilling healthcare workers and investing in R&D and manufacturing.”
This dual role of global suppliers—as providers of technology and enablers of workforce development—makes them integral to India’s healthcare ecosystem.
However, global collaborations bring its own sets of challenges. Choudhary adds,“The high customs duty regime significantly increases the cost of medical devices, which undermines the government’s efforts to make affordable healthcare accessible to the masses through initiatives like Ayushman Bharat (PMJAY). Hence, we urge the government to consider reducing customs duty rates for products where domestic alternatives are not yet readily available”.
Aiming for Atmanirbharta
The Indian government’s push for self-reliance, through policies like the National Medical Devices Policy (2023), aims to reduce import dependency. Domestic manufacturers are entering partnerships and leveraging technology transfers to localize production and enhance supply chain resilience. As Dr. Bhati observes, “The scenario is evolving as Indian manufacturers establish partnerships and technology transfers, enabling localized production, cost reduction, and enhanced supply chain resilience.”
India’s Drug Regulator Halts Import of Refurbished Medical Devices
A recent directive offers a concrete example of India’s growing emphasis on domestic capacity-building. In a landmark move prioritising patient safety and fostering homegrown innovation, India’s drug regulatory authority has instructed the Customs Department to halt the import of refurbished medical devices until a comprehensive policy framework is in place.
The PHD Chamber of Commerce and Industry (PHDCCI) has warmly welcomed this decision, framing it as a crucial step to bolster the Indian medical device industry under the ‘Make in India’ initiative. According to the regulator, the Medical Devices Rules, 2017 do not provide provisions for licensing such imports, rendering their sale and distribution unlawful.
Industry Leaders Weigh In
Mr. Gaurav Aggarwal, Co-Chair of the Medical Device Committee at PHDCCI and Managing Director of Innvolution Healthcare, applauds the clarity provided by the Central Drugs Standard Control Organisation (CDSCO).
“This decisive clarification reinforces the regulatory framework designed to ensure the highest standards of patient safety while creating a robust environment for the growth of indigenous manufacturing. By eliminating ambiguity, CDSCO has further strengthened the push towards self-reliance, innovation, and quality in India’s medical technology sector, perfectly aligning with the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives.”
The Road Ahead
India’s MedTech sector is poised for growth, but global suppliers will remain key players in the near term. The challenge lies in balancing international collaboration with the push for local innovation. As Dr. Bhati succinctly put it, “Global suppliers, assisting domestic capabilities, will continue to play an indispensable role in furthering the growth of the sector and global competitiveness. Together, they deliver accessible, high-quality healthcare to millions of people.”
The future of India’s healthcare sector will depend not on eliminating dependence but on redefining it—by creating a robust ecosystem where global expertise complements local ingenuity.