In an effort to nurture the budding medical devices sector within the nation, the central government has initiated a scheme titled ‘Enhancement of Medical Device Industry,’ earmarking an initial fund of Rs. 500 crore across three years from 2024-25 to 2026-27. This all-encompassing scheme zeroes in on pivotal aspects of the medical device arena, including the manufacturing of essential components, skill advancement, support for clinical evaluations, establishment of shared infrastructure, and the encouragement of industry-related activities. By rolling out this much-anticipated scheme, the government has demonstrated its dedication to fortifying the medical devices realm via focused interventions aimed at generating significant and transformative results.
The scheme’s chief objective is to minimize reliance on imports, thereby fostering self-sufficiency within the sector. A particularly noteworthy aspect of this initiative is its concentration on diminishing India’s dependency on imports—a notable challenge for the medical device industry. Consequently, a comprehensive Rs. 180 crore has been assigned for the Marginal Investment Scheme, which intends to motivate the domestic production of critical components, representing a major segment of India’s medical device imports. By offering capital subsidies up to Rs. 10 crore per project, the scheme endeavors to stimulate domestic production and lessen dependence on foreign products. This initiative is poised to revolutionize the industry, not only providing a boost to the sector but also marking a significant stride towards making India self-sufficient in medical device production.
Undoubtedly, the central government has embarked on a small yet vital journey. Despite past endeavors over the last decade through initiatives such as the production linked incentive (PLI) scheme, the import dependency remains around 70%, predominantly from China. The new scheme is anticipated to create a ripple effect, greatly augmenting domestic manufacturing capacities, significantly reducing imports, promoting quality, human resource development, safety, and efficacy of medical devices, and enhancing the medical device value chains’ depth within the nation. To deepen the country’s manufacturing prowess along the various segments of medical devices, it’s crucial to incentivize the local manufacturing of key components, raw materials, and accessories, alongside medical devices listed by the Department of Expenditure due to the current lack in domestic production to meet public hospital procurement demands. This novel initiative will spark local production, drive innovation, and boost India’s competitiveness in the global MedTech landscape. Undeniably, this latest move by the central government holds the potential to rejuvenate Indian medical device manufacturers. Domestic players, who had pivoted towards trading and importing, will be encouraged to rediscover actual manufacturing by producing complete products and components in-house. The government deserves commendations for this effort, as it promises to be a pivotal change by supplying the necessary propulsion to meet the unfulfilled needs of the Indian medical device industry.