Sector brief 04 of 08
Healthcare, Pharma & MedTech
Greenfield pharma, medical devices and hospitals take 100% FDI on the automatic route; brownfield pharma above 74% needs approval. The main PLI schemes have chosen their beneficiaries, so new entrants look to parks, device sub-schemes and state policies.
In this brief
Everything in this sector brief
11 pages, from the market case to the set-up roadmap and every incentive with its status.
Healthcare, pharma and medtech
Greenfield pharma, medical devices and hospitals take 100% FDI on the automatic route; brownfield pharma above 74% needs approval. The main PLI schemes have chosen their beneficiaries, so new entrants look to parks, device sub-schemes and state policies.
ReadRecent foreign investments in healthcare and pharma
Hospital buyouts and pharma capability bets lead recent foreign deals: KKR's purchase of Medicover's India hospitals, the Aster DM and Quality Care merger, and Eli Lilly's and Sanofi's Hyderabad commitments. Public examples, as stated by each source.
ReadFDI rules for pharma, devices and hospitals
Greenfield pharma, devices and hospitals are open to 100% foreign ownership on the automatic route. Brownfield pharma is automatic up to 74% and on the Government route above, with NLEM and R&D conditions. Land-border ownership rules apply to every activity.
ReadRegulators and registrations for pharma and devices
Products need CDSCO or state licences, and prices and marketing are regulated. Devices are classed A to D by risk; importers act through an authorised Indian agent; test licences now carry a 45-day statutory timeline; ceiling prices and the UCPMP 2024 apply from launch.
ReadCentral incentives for pharma, devices and biotech
Production incentives are allocated and device and drug parks are being built. The three PLIs have selected beneficiaries; RPTUAS and PRIP ran in windows; Biopharma SHAKTI (₹10,000 crore) awaits guidelines. New entrants gain mainly through the parks, device sub-schemes and state policies.
ReadState incentives for pharma, biotech and devices
States add SGST refunds, capital subsidies and land support to central aid. Telangana's Next-Gen Life Sciences Policy 2026-30 offers 100% net SGST for five years; Tamil Nadu 100% SGST for 15 years or a 25% capital subsidy; Uttar Pradesh up to 30% capital subsidy.
ReadTax, customs and zones for healthcare and pharma
GST on most medicines and many devices fell to 5% from 22 September 2025, and individual health insurance became exempt. Bulk drug and device parks carry central grants. A foreign-owned company can pay 25.168% corporate tax; a branch pays 36.40% to 38.22%.
ReadSet-up roadmap for pharma and medtech
From entry decision to commercial production in nine steps: FDI route, regulatory path, site, early incentive filings, land, revised Schedule M, licences, pricing and marketing, and open central support. Importers and hospital operators follow a shorter path.
ReadWhat to watch in healthcare, pharma and medtech
Quality inspections, price rules and US tariffs drive most of the risk. These are the watch-outs the sources flag, from brownfield FDI conditions and land-border ownership to Schedule M enforcement, DPCO ceiling prices, the marketing code and scheme end dates.
ReadRecent changes in healthcare and pharma rules
Six changes since September 2025 reshape the sector: GST on medicines and devices cut to 5%, test licences cut to 45 days, Biopharma SHAKTI announced, the land-border rule eased, the India–UK CETA in force and the US pharma tariff widened with generics outside.
ReadSources for healthcare, pharma and medtech
Every source cited in the healthcare, pharma and medtech sector brief, as of 1 October 2026. Entries marked secondary are press or adviser summaries of an underlying official document.
ReadUpdates
Recent changes
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