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Impact of Make in India on Healthcare Sector in India
Dr. Ajinkya G. Deshpande
Assistant Professor, Commerce Department R.S. Mundle Dharampeth Arts & Commerce College,
Nagpur (Maharashtra, India)
DOI: https://doi.org/10.51583/IJLTEMAS.2026.150400036
Received: 12 April 2026; Accepted: 17 April 2026; Published: 05 May 2026
ABSTRACT
To make India self-reliant and for making India a global leader in manufacturing, Govt of India launched ‘Make
in India’ initiative in 2014. The healthcare sector comprises of hospital, pharmaceuticals, health-tech online
services, medical insurance, medical devices and equipment, and medical tourism. The healthcare sector
contributes significantly to the economic development by creating millions of jobs and accounts for more than
3.3% of GDP. India’s dense population is over 140 Crore and about 10% of the population is over the age of 60
years. With such a huge population base and sedentary life style, the healthcare sector is growing very fast and
it promises an optimistic picture in the future. The present paper aims to understand the impact of Make in India
on the healthcare sector in India. The paper revealed that India’s healthcare sector is very much dependent on
imports. However, make in India initiative reduces to some extent the dependency on import by manufacturing
some of the products, medicines and medical devices, but much more is required to be done. The Govt should
invest its resources through Make in India initiative in healthcare sector for not only making India self-dependent
but also for contributing in export promotion and employment generation. Govt should also make reforms to
strengthen the healthcare sector.
Keywords: Make in India, PLI, Medical Tourism, Wellness Tourism, Health Capital of India
RESEARCH METHODOLOGY
It is a qualitative descriptive research based on renowned academic journal, Govt Publications, Industrial
publications and websites.
INTRODUCTION
About Make in India
(PM India, 2014) Make in India launched on 25
th
September 2014 with an intention to make India a global hub
in manufacturing. This initiative not only target manufacturing but also innovation, designing, intellectual
property rights and building manufacturing infrastructure. During the first 10 years since inception of
commencement of Make in India initiative nothing miraculous results are visible but it is a long-term strategy
which requires constant monitoring and political willpower. During this period India becomes world’s second
largest manufacturer of mobile phones. But more well directed efforts are needed in future. (PIB, 2026) The
fundamental objective of Make in India is to facilitate and increase investment, support innovation and develop
world class manufacturing infrastructure. After a decade of its commencement now Make in India 2.0 phase has
started with new zeal and learnings from previous experience. In these 27 sectors has been targeted to improve
production and productivity in country. There are two broad sectors targeted by Make in India 2.0 is
Manufacturing sector and Service sector.
Manufacturing sector includes
1) Aerospace and Defence
2) Automotive and Auto components
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3) Pharmaceutical and Medical device
4) Bio-technology
5) Capital goods
6) Textiles and Apparels
7) Chemical and Petro chemicals
8) Electronic System Design and Manufacturing
9) Leather and Foot ware
10) Food Processing
11) Gems and Jewellery
12) Shipping
13) Railways
14) Construction
15) New and Renewable Energy
While Service sector includes
1) Information Technology and IT Enabled Services
2) Tourism and Hospitality Services
3) Medical Value Travel
4) Transport and Logistics Services
5) Accounting and Finance Services
6) Audio Visual Services
7) Legal Services
8) Communication Services
9) Construction and related engineering services
10) Environmental Services
11) Financial services
12) Educational services.
The Make in India 2.0 is one of the strong and concrete steps by the Govt to make India a global leader in
manufacturing. Make in India have four pillars –
New Processes – To encourage entrepreneurship, start-ups and business, ‘Ease of doing business’ is
extremely important and essential. For the convenience of business-men and entrepreneurs various policy
reforms, credit support and training is imparted to them.
New Infrastructure – The Govt focusses on developing Smart cities, developing industrial corridors, high
speed communication, Road & Rail networks etc to boost the speed of industrialisation and production
activities.
New Sectors – To boost international investment FDI is encouraged in defence sector, medical devices,
insurance, construction and Railways. This changed the scenario to a great extent.
New Mindset – The Govt has changed its role from a regulator to a facilitator. This will result in long
term economic development, increased employment and innovation.
Make in India is well supported by Production Linked Incentive (PLI) Schemes, PM Gati Shakti, National
Logistic Policy, reforms in GST and many more. This initiative enhances employment opportunities and global
competitiveness.
(PIB, 2025), The Govt of India launched Production Linked Incentive (PLI) schemes in 2020 under the
‘Aatmanirbhar Bharat’. As per the latest report PLI attracted investment worth 1.76 lakh corers, providing direct
and indirect employment to over 12 lakh people since launch of the scheme and total sales through PLI crossed
₹16.5 lakh crores. Due to PLI there is a growth in exports of mobile, pharmaceuticals and electronics goods. PLI
is Govt scheme to strengthen the manufacturing sector by providing financial support/incentives to the eligible
companies based on their incremental sales. PLI schemes specially aims to balance the economy by encouraging
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manufacturing sector. This scheme targets 14 sectors including Mobile manufacturing, pharma, Solar panels,
Drone and Drone components and Semiconductors units.
In April 2021 PLI scheme for White Goods are launched. White Goods includes electronics household appliance
like refrigerator, AC and other appliances. This scheme aims to transform India from a mere assembly hub to a
big global manufacturing centre.
Healthcare Sector in India
(IBEF, 2023) The Indian Healthcare sector is one of the fastest developing sectors. The healthcare sector is
consisting of hospitals, medical devices and equipment, tele-medicine, medical tourism and clinical trials. The
Indian Healthcare sector was ₹ 9,42,590 crore in 2016, it becomes ₹ 31,87,668 crore in 2023. This market is
expanding at a brisk pace due to many factors like increasing population pressure, improving income level,
Health Insurance penetration, sedentary life style, medical tourism and many Govt initiatives.
Hospitals
The hospitals and clinics are the backbone of healthcare sector. In India, hospitals can be broadly divided into
Public sector (run by Govt) and Private sector. Further it may be divided into urban areas and rural areas.
Generally, in rural areas Govt hospitals are more preferred due to low economic condition of the people. Majority
of the high and sophisticated medical care is available in urban areas. The hospital is valued at $ 99 billion in
2023 which is projected to be $ 193.6 billion by 2032.
Pharma Industry (Sharma, 2026)
India is the world’s largest supplier of generics and vaccines. India is rightly said to be the ‘Pharmacy of the
World’. India has 3000 drug firms and 10,500 manufacturing units across India. India supplies about 20% of
the global generics. India is known as a global leader of exporter of vaccines. Pharmaceutical exports reach ₹
1.2 trillion in 2026. The future of Pharma Industry is certainly bright due to various positive environment viz-
increasing population, high proportion of elderly people, high spending on healthcare, insurance penetration,
increasing awareness and medical online medicines. However, there are some challenges before the Pharma
Industry like regulatory and legal international standards, high prices and high dependence on imports for the
supply of raw materials required for the production medicines.
Medical Services
The medical services include primary healthcare, secondary health care, tertiary health care and specialized
health care. The health care medical services include vast services ranging from vaccination, pain management,
accident and trauma management, home health care medical services, physiotherapy to video consultation and
online prescription. These services contribute significantly to the GDP. It also provides employment to millions
of people specially in urban areas. There is a scope for future prospects in different medical services which will
make the life of patient and their relative more comfortable and will also provide employment to millions. The
use of AI will be definitely help in precise treatment and medications.
Medical tourism (www.futuremarketinsights.com, 2026). :India’s Medical tourism market is valued at $ 20.4
Billion in 2026 and is project to reach $ 65.1 billion in 2036. Around 131856 foreigners arrive for medical
treatment in Jan to April 2025 which is 4.1% of total tourist arrival in India. India has become hot destination
for medical tourism due to affordable and high quality medical treatment. The foreigner came for cardiac surgery,
oncology treatment, orthopedic, fertility treatment and cosmetic surgeries. Many foreigners also came for
Ayurvedic treatment like panchakarma and other herbal based treatments. The States which contribute highest
in terms of medical tourism includes Tamil Nadu, Maharashtra, Delhi, Kerala, Karnataka and West Bengal.
Tamil Nadu (Chennai) is considered the ‘Health Capital of India’ which contributes about 45% of foreign
medical tourist, majority of the foreigners came for cardiac surgeries, oncology and transplants. It is followed
by Maharashtra (Mumbai and Pune) known for cosmetic surgeries, oncology and neurosurgeries. Similarly,
Delhi (Delhi, Noida & Gurgaon) & is known for multi-specialty high Tech hospitals and organ donation
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surgeries. Kerala (Kochi, Trivandrum) is famous for traditional Ayurvedic treatment like panchakarma and
many herbal wellness treatments.
(Medical Tourism in India, 2025), during last five year 6,44,387 during 2020 to 2024 visited India for medical
treatment. The citizens from top five countries who visited India for medical purpose are Bangladesh, Iraq,
Somalia, Oman and Uzbekistan. The other countries include Afghanistan, Maldives, Nigeria and Keniya, UAE,
Yaman, Myanmar, USA and UK.
The popularity of India as a Medical Tourism hub particularly in Asia is gaining because of low cost of treatment
with world class facilities and expert doctors. The medical tourism in India is growing at a steady rate of 11.9%
of CAGR from 2020 to 2024. The total market of medical tourism is $ 107.5 billion in 2024 which is expected
to reach $ 275.2 billion in 2035. The proportion of Domestic patient to international patients is 80% domestic
and 20% International patients.
Impact on GDP
Manufacturing sector currently contributes to 14% to 17% of GDP. The Make in India targets to 25% of GDP.
Make in India shown positive impact on FDI since its inception.
The targeted employment generation was 100 million but actually it falls short. However, it positively impacted
some of the sectors like electronics. The rank of India in ‘Ease of doing Business improves from 142 in 2014 to
63 in 2020.
Medical Tourism Vs Wellness Tourism
Many times, these two terms are considered same but there is slight difference between these two concepts, these
are:
Points
Medical Tourism
Wellness Tourism
Meaning
Medical tourism means arrival of
foreigner in India for the treatment of
illness or a disease and treatment is done
in a hospital.
Wellness Tourism mean arrival of foreigner
in India for the prevention of disease or
relaxation.
Objective
The objective is the treatment of a
disease or illness or surgeries.
The objective here is the prevention or
panchakarma or detoxification of body and
mind.
Place of treatment
Treatment is done at hospitals or special
clinics under the supervision of expert
doctors.
Treatment is done at wellness clinics of
resorts or retreats.
Kind of care
Modern care with clinical and
technology driven under the expert
guidance and supervision.
The care is holistic, traditional and natural
Duration
Generally, it is for short term like
surgery some days stay only. However,
in some cases the stay may be more, it is
decided by the doctors.
It is relatively for long duration like for
some weeks
Govt Initiatives
Govt taken many initiatives for the
foreigner for their treatment in India like
streamline Visa rules and other support
system needed. ‘Heal in India’ is one of
the schemes.
promotion of Ayurveda, ‘AYUSH’ and
other healing programmes like
panchakarma and herbal treatment.
Contribution to GDP
$ 20.4 billion market
$ 30.95 billion market in 2026
Example
Surgeries of heart, liver, kidney, ortho,
organ transplantation, cosmetics
Panchakarma, Yoga, Detoxification,
Ayurved and meditation.
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surgeries, oncology treatment and
fertility treatment.
Employment
Generation
Millions of direct and indirect
employment opportunities are created
for doctors, nurses, attendants,
paramedical staff, pathology labs
experts, hospital administration,
accounts, insurance provides, TPA, HR
etc. It is projected to have 24 million
jobs in 2032. Major jobs are created in
urban areas.
The wellness tourism also creates direct and
indirect employment opportunities. Exact
figures are not available but millions are
jobs created in rural and hospitality sectors
in the form of wellness instructors,
Ayuvedic doctors, Yoga instructor,
insurance providers, travelers, hotels etc.
Key destination
Tamil Nadu (Chennai), Mumbai, Pune,
Bangalore, Hyderabad, Delhi
Kerala(Kochi/Thiruvananthapuram ),
Uttarakhand, Goa, Maharashtra
Impact of Make in India on Health care Sector in India
The Healthcare sector is now proving to be a developing area and Make in India impacted it in many way. The
impact of make in India is broadly divided into two categories for our convenience i.e positive impact and
negative impact. This may be summarized as follows
Positive impact
Employment Generation
Healthcare sector creates millions of jobs directly and indirectly. Due to many Govt schemes under Make in
India campaign there will be more employment opportunities, schemes like Ayushman Bharat, PM Jay and many
increased demands for hospitals and obviously demand for required medical equipment.
Reduced dependency on impor
India typically 70% to 80% depends on imports for its medical equipment and raw materials for drugs. But with
make in India the dependency is very much reduced. But more is needed. Now India is manufacturing surgical
equipment, X-Ray machines, Monitoring machines, CT Scanners, MRI machines, ECG machines, ventilators,
PPE kits, cardiac stents, ultrasound equipment, dental equipment and gloves. Under the Make in India campaign
‘Medical Device Park’ has been established in Andhra Pradesh, Telangana, Tamil Nadu and Gujrat for the
support manufacturing cluster of medical devices and components. The domestic production of medical devices
increased from 10% to 30%. India is the largest producer of polio vaccine, measles, COVID-19 vaccines.
Increase in Export
(Invest India, 2019), the size of medical equipment of India is estimated to be $ 14 billion which is expected to
reach $ 30 billion by 2030. India is the fourth largest market of medical equipment after Japan, China and South
Korea and amongst top 20 countries of world in terms of medical equipment market. Due to high quality and
affordable cost the export of medical devices from India reached to $ 4 billion.
There are 800 domestic medical devices manufacturers which produces laboratory and diagnostic equipment
and medical devices like orthopaedic and ophthalmic devices. The MedTech market is steadily growing at 15%
from last three years and it is expected to capture 10% to 12% global market share in next 25 years.
Infrastructural development
Govt focus on manufacturing of medical equipment and devices by providing proper infrastructural facilities. It
includes establishment of medical technology parks, credit facility and other regulatory and procedural support.
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Innovations & Startups
Different innovations and startups are supported by various Govt initiatives in the form of project financing,
training, Research and Development and various procedural support and permissions.
New Career opportunities
Due to development of healthcare sector in India, the new career opportunities are opening like hospital
administrator, health insurance analysis, TPA, Ayurvedic and Yoga therapist, AI Diagnostic Specialist,
Telemedicine Co-Ordinator, Health Data Scientist, Biomedical engineers, Clinical Research analysts, Pathology
experts and attendants, CRDMO professionals (Contract Research, Development, and Manufacturing
Organization).
Negative impact
1) Regulatory limitation:
Although Govt is supporting in procedural formalities but taking permission and following regulatory
formalities is very difficult and sometime creates problems.
2) Dependence on foreign countries for raw materials:
There great dependence of country on the foreign country for the supply of raw materials and components
for medical devices and equipment. Particularly India very much depended on China for the this.
3) Limited Research and Development:
For medical equipment devices and medicine huge investment of money, skill and time is required.
However, the level of Research and Development required for this is unfortunately not seen. Much efforts
are needed both by Govt and private sectors.
4) Proper skills are not available:
For the healthcare sector manufacturing or service good skills are required which are at many times not
available which creates problems.
Opportunities Challenges and of health care sector in India
There are various opportunities for the development of healthcare sector in India due to various favorable
conditions like heavy population and elder population, increased health awareness, IT revolution, Govt
Initiatives and presence of expert doctors from Allopathy and Ayuved. Due to AI and digital awareness too,
healthcare sector has a bright future.
But at the same time the Healthcare sector in India faces some challenges in the form of supply of raw materials
and components from abroad which creates a dependency, lack of skills required, less investment of human
resources in Innovation and Research and Development activities.
Suggestions
1) In order to match global standards with domestic standards quality aspect in medicines and medical
devices and equipment should be given due importance. Efforts should be taken to improve quality by
stringent quality control norms and following protocols.
2) Development of rural infrastructure, this will not only add to the infrastructure of the country but also
attract foreigner and give them better experience.
3) Consistent policy and economic support are needed. Many times, if a different political party came into
power, they change their priority. If there is an assurance of consistent policy and economic support the
pace of development of healthcare sector will not be negatively affected.
4) Effort for skill development needed should be encouraged. For healthcare sector different skills sets are
required. Govt should encourage new courses and encourage the students to acquire these new skills so
as to get better employment opportunities.
5) Global Collaboration needed for world class production of medical equipment and devices.
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6) The industries which can substitute the Imports of raw materials required for medicines and equipment
needed for medical equipment and devices should be promoted and encouraged and supported by the
Govt as a long-term strategy. Year wise plan should be made to reduce dependency on import in a phased
manner.
CONCLUSION
Indian Healthcare market is a huge market of over 100 billion and it is expected to reach 193 billion by 2032.
Special strategies under Make in India are needed for each component of healthcare sector viz strategies for
hospitals, for medical tourism, for manufacturing of medical equipment and medicines and other services
needed. In spite the efforts of Govt the impact of Make in India on Healthcare is not very impressive and much
more efforts are needed. Special Medical Technology Parks should be made where all the needed infrastructure,
financial, technical, procedural and support should be provided. India is blessed with knowledge and wisdom of
Ayurveda, meditation, Yoga, Panchakarma and detoxification. Govt should promote these internationally and
attract medical tourists. The Healthcare sector in India is a great opportunity for the development of world class
manufacturing hub of medical devices and medicines and professionals, at the same time rural development to
some extent may be started with this.
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