India’s rapidly growing medical technology sector is set to receive its first dedicated investment fund of ₹1,000 crore, aimed at accelerating innovation, strengthening domestic manufacturing, and supporting high-growth medtech companies across the country.

The proposed fund, MedArtha Capital, recently received regulatory approval and will focus on supporting growth-stage medical technology companies over the next two to three years. The initiative is being led by industry veterans including Ganesh Sabat, former CEO of Sahajanand Medical Technologies, a prominent player in the cardiac stent industry.

Industry sources indicate that the fund will target 10–12 high-potential medtech companies, particularly those in the ₹30–80 crore revenue range, providing both capital and operational expertise to help scale manufacturing and expand global competitiveness.

The initiative is also expected to receive government backing, with up to ₹500 crore potentially coming through the national Research Development and Innovation (RDI) scheme, which was introduced to catalyse private investment in strategic technology sectors.

The fund will prioritise investments in critical medical technology segments such as MRI systems, CT scanners, cath lab equipment, and neurovascular devices, areas where India continues to rely heavily on imported technologies. By supporting domestic innovation and manufacturing, the initiative aims to reduce import dependency and strengthen the country’s position in the global medtech ecosystem.

Experts believe the fund could mark a turning point for India’s medical technology landscape, which has historically seen limited sector-specific venture investment despite strong demand and innovation potential. The creation of a dedicated medtech investment platform is expected to accelerate the growth of indigenous device manufacturers while aligning with national initiatives such as Make in India to boost advanced manufacturing capabilities.

India’s medical devices market is projected to expand significantly in the coming decade, driven by rising healthcare demand, increased hospital infrastructure, and a strong push for locally developed healthcare technologies. The launch of the ₹1,000 crore fund is expected to play a pivotal role in building a robust ecosystem for medtech startups and manufacturers across the country.