Medtech Boom: 7 Powerful Ways India Is Disrupting Global Healthcare with the PLI Scheme

Global medtech leaders like Siemens Healthineers and Philips are pivoting India from a sales market to a manufacturing and R&D hub, driven by policy incentives such as the Production-Linked Incentive (PLI) scheme and a skilled talent pool. Siemens’ ₹91.9 crore investment in local CT/MRI production and Philips’ AI-driven telehealth innovations in Pune underscore this shift, aiming to cut import reliance and integrate India into global supply chains.

With the domestic medtech sector projected to grow 15% annually—reaching $50 billion by 2030—rising healthcare demand and cost-efficient engineering are attracting multinationals. Challenges like regulatory delays and infrastructure gaps persist, but India’s blend of frugal innovation, policy support, and export potential positions it to capture 5-7% of global medtech trade by 2030. This transformation could redefine affordable healthcare access globally while establishing India as a blueprint for scalable, inclusive innovation. 

Medtech Boom: 7 Powerful Ways India Is Disrupting Global Healthcare with the PLI Scheme

In a strategic pivot, multinational medical technology leaders like Siemens Healthineers and Philips are transforming India from a sales-driven market into a global manufacturing and innovation nexus. Fueled by policy tailwinds, cost efficiencies, and a skilled workforce, this shift positions India to disrupt global medtech supply chains while addressing domestic healthcare demands.  

From Importer to Innovator: The Strategic Shift 

For decades, India relied heavily on imported medical devices, with imports accounting for over 70% of its $12 billion medtech market. However, recent investments signal a reversal. Siemens Healthineers, approved under India’s Production-Linked Incentive (PLI) scheme, is investing ₹91.9 crore to locally produce advanced CT and MRI systems. Similarly, Philips has expanded its Pune R&D hub, focusing on AI-driven imaging and telehealth solutions tailored for emerging markets.  

This transition aligns with India’s broader ambition to reduce import dependency and become a “MedTech 4.0” leader—blending automation, AI, and frugal engineering.  

The Pillars of India’s Medtech Momentum 

• Policy Catalysts: The PLI scheme, offering ₹3,420 crore in incentives over five years, has attracted 26 domestic and international firms. It covers critical segments like cancer diagnostics and imaging, enabling companies to offset setup costs while competing globally.  

• Tedge Over Talent: India’s pool of engineers, data scientists, and biomedical researchers provides a dual advantage. Siemens, for instance, employs over 4,500 professionals in India for software development and system design, driving cost-efficient innovation.  

• Domestic Demand Surge: Rising chronic diseases, health insurance penetration, and tier-2 city hospital expansion are propelling medtech demand. The Indian market is projected to grow at 15% CAGR, reaching $50 billion by 2030. 

Global Integration, Local Impact 

Local manufacturing isn’t just about exports—it’s reshaping affordability. GE Healthcare’s “Made in India” PET-CT scanners, priced 30-40% lower than imports, exemplify this trend. Meanwhile, India’s low-cost innovation model, exemplified by portable ECG devices and tele-ICU solutions, is gaining traction in Africa and Southeast Asia.  

Challenges on the Path to Hub Status 

While progress is notable, hurdles persist:  

• Regulatory Hurdles: Delays in device approvals and inconsistent quality standards risk slowing momentum.  

• Infrastructure Gaps: Limited component ecosystems force reliance on imported raw materials.  

• Competition: Domestic players like Trivitron Healthcare are scaling rapidly, intensifying price competition. 

The Road Ahead 

Industry analysts highlight India’s potential to capture 5-7% of the global medtech trade by 2030, up from 1.5% today. Key to this will be fostering academia-industry collaborations and incentivizing high-end exports. As Vivek Kanade of the Indian Medical Devices Council notes, “The next frontier is moving from assembly to IP creation—designing cutting-edge devices in India, for the world.”  

With global giants embedding India into their value chains, the country stands at the cusp of a medtech revolution—one that could redefine healthcare accessibility globally while bolstering its economic stature. The world is watching: India’s success may offer a blueprint for balancing innovation, affordability, and scale.