Now Reading: India’s medical devices sector struggles with limited local value addition
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India’s medical devices sector struggles with limited local value addition
India’s medical devices sector struggles with limited local value addition
Business Today reports that India’s medical devices market, estimated at $16.97 billion in 2025 and projected to grow to $28.85 billion by 2035, remains heavily import-dependent. A parliamentary committee flagged a $4.8 billion import-export gap in FY25, exposing the country to geopolitical and supply chain risks. The government extended its Production-Linked Incentive (PLI) scheme to 55 high-end devices, resulting in 22 projects, Rs 12,344.37 crore in sales, and Rs 5,869.36 crore in exports, but critical components like X-Ray tubes are still imported, limiting value addition to 40-50%.
At a CII summit, Department of Pharmaceuticals Secretary Manoj Joshi said the sector needs more local value addition and component manufacturing, noting that many factories are “plain assembly line operations.” Joshi acknowledged that under the PLI scheme, many investors could not claim incentives and said the government is open to suggestions, including extending the scheme’s timeline. He urged component makers to aim for 40-45% domestic value addition and called for more product testing.
Indian Opinion Analysis
Business Today frames the story around patient experience and persistent import dependence, citing a parliamentary committee’s warning and industry calls for bold reforms. ET Healthworld leads with the government’s admission of limited value addition and its openness to fixing PLI gaps. The former emphasises structural failure, the latter focuses on policy responsiveness. Together, they show a government acknowledging implementation flaws while the industry points to deeper systemic issues. The measured takeaway: the PLI scheme has attracted investment but has not yet built a component ecosystem. Watch whether the government extends the scheme’s tenure to help stranded investors.
Coverage: 2 sources, 1 pro-government, 1 government-critical
Sources (2): businesstoday.in (government critical), health.economictimes.indiatimes.com (pro government)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
