Local strength, global impact: Medical device opportunity for the state

By Dr G S K Velu

The medical device manufacturing sector has transformed significantly in the past few years, and Tamil Nadu stands out as one of the most promising states leading this transformation. What was once a largely import-dependent industry is now evolving into a homegrown manufacturing and innovation hub, driven by concerted policy action, strengthening of industrial ecosystems, and a growing belief across govt, industry and academia that healthcare technologies can—and should—be developed and scaled from within India.

TN’s strength lies in leveraging decades of expertise in electronics, precision engineering, automotive components and biomedical research. These capabilities provide a strong foundation for precision manufacturing, critical for medical device production. The state hosts a spectrum of manufacturers, from SMEs producing components and sub-assemblies to larger companies assembling finished devices and diagnostic systems. Chennai, Coimbatore and adjoining industrial corridors have emerged as centres where engineering expertise and healthcare aspirations converge.

One of the most visible outcomes of policy support has been the development of medical device parks with common facilities and logistical linkages. These parks lower entry barriers, provide shared access to testing and calibration facilities, and create clusters where innovation can move quickly from concept to commercialisation. However, the upcoming medical devices park near Chennai requires greater industry participation. Bringing industry experts into planning and governance can help ensure these parks meet real-world manufacturing and innovation requirements.

A strong vendor ecosystem is important too. Suppliers that traditionally catered to the automotive and electronics sectors are adapting to medical device requirements through precision tooling, certified plastics, mechatronics and sub-assembly manufacturing. To accelerate this, structured vendor development programmes are needed to build expertise in quality standards, regulatory compliance and global certification pathways. The govt should consider procurement policies that encourage the adoption of devices manufactured within the state.

Localization is a key priority for TN’s medical device sector, as high-value and complex components continue to depend heavily on imports. India today ranks as the fourth-largest medical devices market in Asia and among the top 20 globally. The Indian medical device market is estimated at $15.2 billion in 2025 and is projected to reach $50.1 billion by 2030, growing at a CAGR of 27%. Despite this rapid growth, nearly 80% of high-end, advanced medical devices continue to be imported, particularly from the US and China, according to Rubix Data Sciences.

True localisation requires strengthening the value chain—from design and prototyping to large-scale manufacturing—through coordinated efforts between industry, academia and govt. Facilitating partnerships, enabling clinical trials in public hospitals, and establishing centres of excellence in genomics, AI, translational research and advanced diagnostics can build expertise, develop skilled talent and foster innovation. Such initiatives can position TN as a globally competitive, knowledge-driven medical device hub.

The benefits of localisation extend well beyond industrial growth. When advanced medical devices and diagnostic equipment are manufactured locally, the impact on healthcare costs can be transformative. Procurement expenses for advanced imaging systems such as CT, MRI, PET and CathLab equipment, as well as high-end pathology instruments including molecular diagnostics platforms, mass spectrometers and next-generation sequencing machines, are expected to decline substantially. Over time, these savings could exceed 30%, making healthcare more affordable and accessible while strengthening India’s self-reliance in medical tech.

The global medical device market is expanding rapidly, driven by demographic shifts, rising chronic disease burdens and increasing demand for affordable, high-quality healthcare solutions. India’s own demand is equally compelling, with the need for accessible diagnostics and therapeutic technologies reaching every corner of the country.

TN is positioned to address domestic and global demand given its policy intent, industrial base and human capital. The state has an opportunity to move beyond being a manufacturing destination and emerge as a centre for innovation, design and tech development in medical devices. If industry, govt and academia can work together to deepen localisation, strengthen vendor capabilities and accelerate research-led innovation, TN could become one of the most important medical tech hubs not just in India, but in the broader global healthcare landscape.

(The author is Chairman, FICCI Tamil Nadu State Council & CMD Trivitron Healthcare, Neuberg Diagnostics & Maxivision Eye Hospitals)