Inside India’s MedTech Parks: Building the Factories of the Future

For years, India’s medical device market relied heavily on imports - nearly 80 percent of high-value devices still come from abroad.
But the momentum is shifting. Government-backed clusters under the Production Linked Incentive (PLI) and MedTech Park schemes are creating a manufacturing ecosystem where localisation, innovation, and exports converge.

India’s MedTech sector is at a structural turning point:

• Domestic device manufacturing now exceeds USD 3 billion, up from USD 1.8 billion in FY21.

• Four MedTech parks - in Andhra Pradesh, Tamil Nadu, Himachal Pradesh, and Gujarat - are operational or nearing completion.

• Each park integrates R&D, component supply, testing facilities, and logistics into a single, connected value chain.

The result: a supply-side foundation for India’s move from “import-reliant” to export-ready manufacturing.

Cluster Economics: The New Engine of Affordability

At the core of India’s MedTech manufacturing strategy lies a simple principle - cost efficiency through co-location.
By bringing suppliers, fabricators, and testing labs into one cluster, these parks reduce:

• Lead times by 30–40 percent.

• Component costs by up to 25 percent.

• Regulatory delays through shared compliance and certification facilities.

This ecosystem model mirrors the success of automotive and semiconductor clusters - now being replicated for healthcare devices.

In Tamil Nadu’s MedTech Park, for instance, diagnostic-equipment manufacturers share sterilisation, calibration, and biocompatibility labs - eliminating redundant CAPEX and driving down unit costs.

Key Parks Powering India’s MedTech Future

1. Andhra Pradesh MedTech Zone (AMTZ), Visakhapatnam

India’s first and largest integrated MedTech hub, AMTZ spans over 270 acres and hosts more than 120 companies.
It offers:

• In-house prototyping and bio-testing labs.

• The i-Passport system, streamlining regulatory clearances within weeks.

• Shared logistics and sterilisation infrastructure.

Impact: Reduced device time-to-market from 36 months to 12.

2. Tamil Nadu MedTech Park (Oragadam)

Strategically linked to the Chennai port, it focuses on precision plastics, electronics, and imaging devices.
The park integrates vendor development programs with Tier-2 manufacturers for sustainable localisation.

3. Ujjain MedTech Park (Madhya Pradesh)

Announced with a ₹2,407-crore investment, this park will cater to north-central India’s growing diagnostic and surgical-device demand.
Its goal: to manufacture 20 percent of India’s mid-tier medical devices by 2030.

4. Himachal Pradesh Park

Specialises in consumables, orthopaedic implants, and low-cost diagnostic kits for semi-urban and government-procurement markets.

Together, these hubs signal a decisive shift - from scattered manufacturing to structured MedTech industrialisation.

Policy Backbone: PLI and PRIP Driving Integration

The Production Linked Incentive (PLI) scheme for medical devices (₹3,420 crore) and the Promotion of Research and Innovation in Pharma-MedTech (PRIP) programme (₹5,000 crore) are powering both infrastructure and innovation.

• PLI: Provides 5–12% incentives on incremental sales of domestically manufactured medical devices.

• PRIP: Funds early-stage R&D, clinical validation, and digital health integration for startups working within these parks.

The synergy between both ensures India’s MedTech sector is not just manufacturing locally, but innovating globally.

MedTech Parks: The Digital Layer

Modern MedTech parks aren’t just industrial estates - they’re digitally integrated ecosystems.
Each is aligned with India’s Ayushman Bharat Digital Mission (ABDM) and NHCX standards, ensuring every locally made device can seamlessly integrate into digital healthcare workflows.

Smart factories within AMTZ and Oragadam already use:

• IoT sensors for predictive maintenance.

• AI-based quality control for component testing.

• Digital twins for faster design iteration and simulation.

This digital-physical convergence is turning India into a hub for “Industry 4.0-ready” healthcare manufacturing - a space once dominated by East Asia.

Challenges: Scaling the Blueprint

Despite the momentum, three challenges must be addressed for long-term competitiveness:

1. Component Dependency: Nearly 65% of sensors and micro-electronics still rely on imports.

2. Skilling Gap: India needs over 200,000 trained biomedical engineers and technicians to staff the new parks.

3. Global Certification: ISO 13485 and CE marking capacity must expand for export scalability.

Targeted incentives for supplier localisation and skill development will determine whether the parks achieve full self-reliance or remain assembly nodes.

The Export Multiplier

India’s MedTech exports crossed USD 2.5 billion in FY25 and are projected to hit USD 10 billion by 2030, driven by these clusters.
Their geographic advantage - ports, logistics corridors, and low-cost manufacturing - positions India to serve emerging markets in Africa, the Middle East, and ASEAN.

Each park also doubles as a testing and validation hub, ensuring devices meet global quality standards before shipment - strengthening India’s credibility as an exporter, not just a contract manufacturer.

Conclusion: From Clusters to Catalysts

The rise of India’s MedTech parks marks the next chapter in the country’s healthcare-industrial story.
They represent more than factories - they are innovation ecosystems, where design, data, and distribution intersect.

For India to truly build a global MedTech brand, these parks must evolve into export-ready, digitally integrated innovation zones.

At GrowthJockey, we work with healthcare innovators and investors to operationalise that vision - turning policy frameworks into scalable, revenue-positive ventures that power both India’s health outcomes and its industrial economy.
Because in the race toward healthcare self-reliance, India’s factories of the future won’t just build devices - they’ll build trust.

FAQs

1. What are MedTech parks?
Integrated manufacturing clusters designed to localise production and reduce device import dependence.

2. How many MedTech parks are operational in India?
Four major ones - in Andhra Pradesh, Tamil Nadu, Gujarat, and Himachal Pradesh.

3. What’s the role of the PLI scheme?
It incentivises domestic manufacturing and export-linked growth for medical devices.

4. How do these parks support startups?
They offer shared R&D, testing, and prototyping facilities, reducing entry barriers.

5. What’s their long-term goal?
To make India a global hub for affordable, high-quality, digitally-enabled medical devices.