By Dr G S K Velu
The medical device manufacturing sector has undergone a remarkable transformation in recent years, with Tamil Nadu emerging as a leading state in this revolution. Once heavily reliant on imports, the industry is now evolving into a homegrown manufacturing and innovation hub, thanks to coordinated policy actions, strengthening industrial ecosystems, and a growing consensus among government, industry, and academia that healthcare technologies can and should be developed and scaled within India.
Tamil Nadu's Strengths in Precision Manufacturing
Tamil Nadu's success is rooted in its decades of expertise in electronics, precision engineering, automotive components, and biomedical research. These capabilities provide a solid foundation for precision manufacturing, which is critical for medical device production. The state hosts a diverse range of manufacturers, from small and medium enterprises producing components and sub-assemblies to larger companies assembling finished devices and diagnostic systems. Cities like Chennai and Coimbatore, along with adjoining industrial corridors, have become hubs where engineering expertise meets healthcare aspirations.
Medical Device Parks and Industry Participation
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 commercialization. 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.
Building a Strong Vendor Ecosystem
A robust vendor ecosystem is essential. Suppliers that traditionally catered to the automotive and electronics sectors are now adapting to medical device requirements through precision tooling, certified plastics, mechatronics, and sub-assembly manufacturing. To accelerate this transition, structured vendor development programs are needed to build expertise in quality standards, regulatory compliance, and global certification pathways. The government should consider procurement policies that encourage the adoption of devices manufactured within the state.
Localization: A Key Priority
Localization is a key priority for Tamil Nadu's medical device sector, as high-value and complex components continue to depend heavily on imports. India currently 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 compound annual growth rate of 27%. Despite this rapid growth, nearly 80% of high-end, advanced medical devices are still imported, particularly from the United States and China, according to Rubix Data Sciences.
True localization requires strengthening the value chain from design and prototyping to large-scale manufacturing through coordinated efforts between industry, academia, and government. Facilitating partnerships, enabling clinical trials in public hospitals, and establishing centers of excellence in genomics, artificial intelligence, translational research, and advanced diagnostics can build expertise, develop skilled talent, and foster innovation. Such initiatives can position Tamil Nadu as a globally competitive, knowledge-driven medical device hub.
Benefits of Localization
The benefits of localization 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 technology.
Global and Domestic Demand
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.
Tamil Nadu is well-positioned to address both domestic and global demand given its policy intent, industrial base, and human capital. The state has an opportunity to move beyond being just a manufacturing destination and emerge as a center for innovation, design, and technology development in medical devices. If industry, government, and academia can work together to deepen localization, strengthen vendor capabilities, and accelerate research-led innovation, Tamil Nadu could become one of the most important medical technology 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)
