Policy Shifts and Economic Impact on India MedTech Market in 2025

By Rahul Gotadki , 20 August, 2025

The India MedTech market in 2025 is set for profound shifts owing to new regulations as well as the increased focus on domestic manufacturing. With the post-pandemic healthcare needs soaring, the government's policy spending in 2025 aims to turn India into a competitive global hub for innovation and self-sufficient growth in medical technologies.

In 2025, the government of India will prohibit the import of refurbished and second-hand medical devices to safeguard patients and subsequently promote the domestic industry. This is in line with the “Make in India” campaign and is intended to decrease the nation’s dependence on imports, which, prior to 2025, stood at 80-85 percent. Alongside this, the Production-Linked Incentive (PLI) scheme, also expected to be around Rs. 3,420 crore, or USD 468 million, will presumably increase investment in manufacturing essential medical devices in India by 2025.

Some aspects of regulations and laws are also changing in 2025. The Central Drugs Standard Control Organisation (CDSCO) made alterations to the risk classification system by adding new Class A categories to facilitate device approvals. The enforcement of the Medical Devices Rules (MDR) 2017, which includes the full implementation of UDI requirements, enhances traceability and compliance within the system by integrating India's MedTech market with international standards in 2025. 

Strategic alliances are actively forming the markets in 2025. The India-UK Free Trade Agreement signed in late 2024 is further lowering tariff boundaries on advanced MedTech imports during 2025, increasing their accessibility while simultaneously stimulating technology transfer. Still, local manufacturers are expressing the need for additional policy custom duty concessions alongside policy support in 2025, indicating in response to the Union Budget 2025 that this is their position.

The India MedTech market is set to reach USD 50 billion owing to demand expansion, policy changes, and increased spending on health infrastructure by the end of 2025. The sector is anticipated to further contribute to the country's GDP and employment as India moves from an import-driven to an innovation-focused MedTech economy in 2025.