The Government of India is set to launch a ₹1,000 crore dedicated investment fund exclusively for the medical devices and MedTech sector the first of its kind in the country. The fund aims to provide equity, quasi equity, and debt support to early stage and growth stage MedTech startups, helping them scale manufacturing, achieve regulatory clearances, and compete globally while reducing India’s dependence on imported medical devices.
Glimpse:
Announced on January 28, 2026, the ₹1,000 crore MedTech Investment Fund will be managed by a professional fund manager under the supervision of the Department of Pharmaceuticals (DoP) and SIDBI. It targets investments in diagnostics, imaging, surgical robotics, implants, wearables, and point of care devices sectors critical to India’s healthcare self-reliance. The fund is expected to catalyse ₹3,000–4,000 crore in total investment through co-investment and leverage, creating thousands of jobs and supporting export growth in the ₹50,000+ crore MedTech market.
In a major boost to India’s medical devices ecosystem, the Union Government has approved the establishment of a ₹1,000 crore dedicated investment fund aimed at nurturing and scaling indigenous MedTech innovation. The announcement, made on January 28, 2026, by the Department of Pharmaceuticals (DoP), marks the country’s first government backed fund exclusively focused on the MedTech sector.
The fund will operate as a professionally managed vehicle (likely under an AIF structure) with contributions from the central government, public sector banks, and strategic partners. SIDBI will play a key role in fund management and deal sourcing. Investment focus areas include:
- Diagnostics and imaging equipment
- Surgical instruments and robotics
- Implants, prosthetics, and orthotics
- Wearables and remote monitoring devices
- Point of care testing and in-vitro diagnostics
- AI/ML-enabled MedTech solutions
Support will be provided through equity, quasi equity, debt, and follow on funding, with a special emphasis on startups that have achieved proof of concept, regulatory progress (CDSCO, US FDA, CE marking), or early commercial traction. The fund aims to back 40–60 companies over its lifecycle, with ticket sizes ranging from ₹5–50 crore depending on stage and need.
The initiative comes amid India’s ongoing efforts to reduce its 80–90% dependence on imported medical devices (especially high-end equipment) and build domestic manufacturing capacity under the Atmanirbhar Bharat and Make in India campaigns. The Production Linked Incentive (PLI) scheme for medical devices has already attracted significant investments, and this fund complements those efforts by providing risk capital to innovative startups that may not yet qualify for PLI benefits.
Union Minister of Chemicals & Fertilizers highlighted the strategic importance: “India has immense talent in MedTech innovation, but many promising startups struggle to scale due to capital constraints. This ₹1,000 crore fund will bridge that gap helping create world-class Indian brands, generate high-skill jobs, and make quality healthcare devices more affordable and accessible for our citizens.”
The fund is expected to catalyse ₹3,000–4,000 crore in total investment through co-investment from private VCs, family offices, and international partners. It will also support export-oriented companies to meet global standards and penetrate markets in Africa, Southeast Asia, and Latin America.
The announcement has been welcomed by the MedTech industry, with leaders noting that dedicated funding has been a long standing demand to accelerate indigenous innovation and reduce import reliance.
“This is not just another fund it is a national mission to build a self-reliant MedTech ecosystem. By backing innovation with capital and confidence, we are laying the foundation for India to become a global MedTech powerhouse.”
By
HB Team
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