India has started manufacturing medical devices such as CT scanners, MRI machines, and Dialysis Machines, which were previously entirely imported, according to Amit Aggarwal, Secretary of the Department of Pharmaceuticals. These devices are being produced under the Production Linked Incentive (PLI) scheme, a government initiative under the Make-in-India program that provides financial incentives to encourage local manufacturing.
“We have initiated 19 projects to manufacture 46 medical devices that were earlier imported under the PLI scheme,” Aggarwal stated.
The budget allocation for manufacturing incentives, infrastructure, and ecosystem development has increased by 44%—rising from ₹282 crore in 2024-25 to ₹405 crore in the current financial year. The government has also commissioned the domestic production of over 175 high-value drugs, including medicines for cancer, vaccines, rare diseases, and autoimmune disorders, under the PLI scheme.
“India has begun manufacturing critical antibiotics like Penicillin-G and Clavulanic Acid. Additionally, the production of Rifampicin, an essential drug for tuberculosis treatment, is expected to commence next year,” Aggarwal added.
India’s medical devices sector was valued at $11 billion (approximately ₹90,000 crore) in 2020, accounting for 1.5% of the global medical device market. In 2023, the Union Cabinet introduced the National Medical Devices Policy to enhance domestic production and reduce dependency on imports. The policy focuses on establishing centers of excellence in research institutions, innovation hubs, and “plug-and-play” infrastructure to support startups in the sector.
To strengthen global positioning, the policy also proposes creating a dedicated Export Promotion Council to study international best practices in manufacturing and skill development, exploring their implementation in India.
Furthermore, the 2025-26 budget has increased funding for the Promotion of Research and Innovation in Pharma MedTech (PRIP) scheme by over 200%. “India is a global leader in generic medicines, but now the government is actively promoting innovation in six key areas, including drug discovery, medical devices, stem cell therapy, and treatment of drug-resistant conditions,” an official stated.
