India’s healthcare industry has witnessed significant growth in recent years, with MSMEs playing a pivotal role in offering innovative and affordable solutions to meet the increasing demand for quality healthcare services. The MSME ministry has identified the health sector as a priority area for import substitution and is collaborating with the IHD to implement targeted interventions that will help develop advanced manufacturing capabilities among MSMEs. This initiative aims to promote self-reliance in India (Atma Nirbhar Bharat) and boost exports in the health sector. MSMEs in the sector can access funding and government schemes such as the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) and the Prime Minister’s Employment Generation Programme (PMEGP) to support their expansion and development. The CGMSE provides collateral-free credit to MSMEs through eligible lending institutions, while the PMEGP is a credit-linked subsidy program aimed at promoting self-employment and generating employment opportunities in the MSME sector. With the support of these schemes, MSMEs in the healthcare sector are expected to continue to grow and contribute to the industry’s development.