India in the Global Manufacturing Reset
Global manufacturing strategy is undergoing a structural reset. Over the past decade, companies optimized for cost, scale, and efficiency within relatively stable trade and policy environments. Today, that stability can no longer be assumed. Trade alignments, geopolitical considerations, ESG expectations, regulatory frameworks, and incentive cycles now evolve faster than traditional factory life cycles.
India has emerged as a direct beneficiary of this shift. By 2025, it is no longer positioned merely as a low-cost manufacturing destination, but as a strategic production base capable of supporting regulated, export-oriented manufacturing, including medical devices. Sustained GDP growth, a rapidly expanding healthcare market, and targeted industrial policies have strengthened India’s relevance for foreign medical device companies seeking both market access and supply chain resilience.
The question for foreign companies is no longer whether to consider India, but how to choose the right location within India—a decision that increasingly determines regulatory compliance, ESG performance, scalability, and long-term risk.
Understanding India: Why Location Decisions Start with States
India’s industrial competitiveness is primarily state-driven. Each state sets its own framework for industrial land, power and water supply, incentives, approvals, and governance. Consequently, two locations in India may differ dramatically in cost, compliance, and operational risk.
For foreign medical device companies, state selection precedes city-level evaluation, allowing alignment with regulatory, ESG, and export-oriented requirements.
Andhra Pradesh: A Strategic State for Regulated Manufacturing
Hyderabad: Talent, Compliance, and R&D Orientation
Hyderabad excels in pharmaceuticals, BT, IT/ITES, and applied R&D. It supports regulatory-intensive manufacturing and high-value product development. The city offers:
- International air connectivity
- Advanced telecom networks and VPN options
- Skilled English-speaking workforce
- Strong EU MDR-compliant manufacturing ecosystem
Visakhapatnam: Port-Led, ESG-Compatible Manufacturing
Visakhapatnam provides scalable, export-oriented manufacturing. Advantages include:
- APIIC and APSEZ industrial land
- Reliable utilities (MW, MLD water supply)
- NH connectivity and port access for MT/MTPA cargo
- Opportunity to integrate renewable energy and ESG best practices
Karnataka: Southern Hub for Innovation and High-Tech Manufacturing
Karnataka is renowned for combining advanced manufacturing with innovation ecosystems. Bangalore, Mysore, and Tumkur form the state’s core industrial network.
Bangalore: Knowledge-Driven Manufacturing
- Strong IT/ITES and biotech cluster supporting EU MDR documentation, traceability, and process automation
- KIADB-managed industrial areas (Peenya, Jigani, Electronics City)
- Access to skilled workforce from NITs, ITIs, and engineering colleges
- Reliable power, telecom (DSL, GSM/CDMA), and international airport connectivity
Tumkur and Kolar: Cost-Effective Production Options
- Less congested industrial zones with competitive land rates
- Growing infrastructure and logistics links to Bangalore ports
- Opportunities to build ESG-compliant production hubs with renewable energy integration
Foreign medical device companies benefit from Karnataka’s innovation-led, regulatory-ready ecosystem, especially for precision manufacturing and high-complexity devices.
Maharashtra: Industrial Diversity and Scale
Maharashtra is one of India’s largest industrial states with established clusters across Pune, Nashik, Aurangabad, and Nagpur.
Pune: High-Value Manufacturing and R&D
- MIDC-managed zones (Pimpri-Chinchwad, Chakan, Ranjangaon) support high-value production
- Proximity to skilled labor, technical institutes, and applied R&D
- Mature supply chains for medical-grade materials
Aurangabad and Nashik: Expansion and Cost Efficiency
- Lower land cost compared to Pune
- Growing infrastructure supporting MT/MTPA-level production
- Proximity to ports and highways for export-oriented operations
Maharashtra offers flexibility for foreign companies, from high-value small-batch production to mid-scale export-oriented manufacturing.
Tamil Nadu: Export-Oriented and Logistics-Friendly
Tamil Nadu has historically been an export-oriented manufacturing hub for pharmaceuticals, automotive, and electronics, making it highly relevant for medical device manufacturers.
Chennai: International Connectivity and Advanced Industrial Parks
- SIPCOT-managed industrial zones (Sriperambadur, Oragadam, Perundurai)
- Major international airport and port connectivity for expedited exports
- Access to skilled labor, ITIs, and engineering colleges
Coimbatore and Madurai: Secondary Cities with Cost Advantage
- Emerging industrial clusters with lower congestion and competitive land rates
- Suitable for ESG-aligned production and renewable energy adoption
- Strong local support for EU MDR-compliant processes
Foreign companies can leverage Tamil Nadu for regional manufacturing hubs, combining cost efficiency, logistics, and regulatory readiness.
ESG and EU MDR: Core to Location Strategy
By 2025, ESG and EU MDR compliance are no longer peripheral concerns—they are critical to site selection. Locations differ in their ability to support:
- Environmental compliance (ETPs, water recycling, renewable energy integration)
- Workforce skill development (ITI, NIT, technical universities)
- Governance transparency (single-window clearances, GST, digital approvals)
Foreign medical device companies increasingly prioritize sites where ESG performance supports regulatory compliance, reduces audit friction, and enhances global market access.
The Global Signal: Manufacturing Assets Are No Longer Static
Samsung’s moves—from China to Vietnam in 2019, now increasingly to India—illustrate a paradigm shift in location strategy. This is not about one company; it is a broader signal.
- Traditional 15–20 year factory plans are giving way to 5-year horizons
- Manufacturing assets behave as strategic options rather than fixed investments
- Relocation involves multi-year, parallel operations, overlapping certifications, and multi-timezone management
Foreign medical device companies must recognize that the “right” location balances cost with stability, infrastructure readiness, regulatory alignment, and incentive access. The ability to pivot is now a core component of global supply chain design.
India from 2025 to 2035: Optionality and Strategic Advantage
Between 2025 and 2035, India is expected to consolidate its role as a secondary and diversification base for regulated medical devices. States with ESG-aligned industrial ecosystems, robust infrastructure, and predictable governance will outperform traditional cost-focused hubs.
Foreign companies benefit from:
- Multi-state optionality for flexible network design
- Secondary city clusters (Nagpur, Madurai, Tumkur, Kolar) for scalable expansion
- ESG integration supporting EU MDR compliance
- Incentive structures reducing risk and enabling faster ROI
How M+V Altios Enables Foreign Companies
Navigating India’s state-driven complexity requires local expertise. M+V Altios supports foreign medical device companies by:
- Aligning state selection with EU MDR and ESG priorities
- Shortlisting cities and industrial clusters based on infrastructure, manpower, and incentives
- Optimizing incentive access and subsidy utilization
- Designing scalable, compliant, and resilient manufacturing networks
M+V Altios transforms India from a single-location choice into a strategic, adaptive manufacturing landscape.
Conclusion
India is no longer merely a cost destination—it is a strategic platform for flexible, ESG-aligned, compliant manufacturing. Foreign medical device companies that select the right state and city, integrate EU MDR compliance early, and leverage ESG-ready industrial clusters can convert uncertainty into long-term competitive advantage.
Global signals reinforce this shift. Samsung’s ongoing relocation decisions highlight that manufacturing assets are now mobile strategic options, influenced more by geopolitical alignment, infrastructure readiness, and policy stability than by wage arbitrage alone. Five-year planning horizons are increasingly the norm, requiring companies to manage parallel systems, certifications, and suppliers across multiple geographies.
Between 2025 and 2035, India’s industrial landscape will reward adaptive, ESG-compliant, and regulatory-aligned strategies. With M+V Altios as a partner, foreign medical device companies can turn location decisions into resilient, future-ready manufacturing networks.
