India's MedTech Leap: $7B Hub by 2035

India is set to emerge as a major global hub for medical device contract manufacturing, with projections indicating a $7 billion market by 2035. This strategic shift is fueled by international companies seeking to diversify their supply chains away from China, coupled with India's rapidly advancing domestic manufacturing ecosystem.

The overall MedTech opportunity in India is expected to quadruple, reaching between $83 billion and $89 billion by 2035. This expansion is supported by growing domestic demand, increasing exports, and the burgeoning contract manufacturing sector. Notably, India's share of domestic MedTech demand manufactured locally has dramatically increased, rising from approximately 20% in 2022 to nearly 45% by 2025.

India's competitive advantage lies in its significantly lower labor costs compared to the US and China. Ongoing free trade agreements further enhance its export potential. Despite these strengths, the report highlights structural challenges such as import dependence for components, fragmented testing infrastructure, and lower R&D investment compared to global benchmarks. Recommendations include faster regulatory approvals and incentives to bolster value addition.