Despite government assistance, the medical device manufacturing sector in India faces several challenges, principally a lack of infrastructure, admitted Union Minister for Chemicals and Fertilizers J.P. Nadda while recently launching the Central Scheme for Strengthening the Medical Device Industry.
The move has been welcomed by the industry with the government allocating a total outlay of ₹500 crore. “The comprehensive scheme targets critical areas of the medical device industry covering manufacturing of key components and accessories, skill development, support for clinical studies, development of common infrastructure, and industry promotion,’’ the Ministry said.
Calling it a game changer that will not only help the industry but will also help make India self-reliant, the Centre noted that medical device industry is an essential pillar of healthcare delivery. From diagnostic machines to surgical instruments, and from stents to prosthetics, medical devices are critical for the prevention, diagnosis, and treatment of diseases. India’s medical device market is valued at approximately $14 billion and is expected to grow to $30 billion by 2030, according to the Ministry.
Welcoming the announcement. Himanshu Baid, managing director, Poly Medicure said that the new scheme for medical devices marks a significant milestone for India’s MedTech sector, fostering both growth and export potential.
“Key initiatives such as the identification of common facilities for medical device clusters will encourage collaboration, innovation, and cost efficiency. Capacity building and skill development programs are crucial to bridge talent gaps, ensuring high standards of manufacturing and clinical expertise,’’ he said.
He added that the medical devices clinical studies support scheme will boost the development of high-quality, globally competitive products, enhancing India’s presence in international markets, while the marginal investment scheme to reduce import dependence will stimulate domestic manufacturing, promote self-reliance, and drive down import costs.
Industry experts note that these measures will accelerate sectoral growth, reduce import reliance, and enhance India’s position as a leading exporter of medical devices. The comprehensive approach is expected to benefit the industry and strengthen the country’s healthcare infrastructure.
The new scheme consists of five sub-schemes including — Common Facilities for Medical Devices Clusters, Marginal Investment Scheme for Reducing Import Dependence and Capacity Building and Skill Development for Medical Devices.
Anish Bafna, CEO and MD, Healthium Medtech, said, “The government’s recent ₹500 crore scheme for the medical device industry marks a major advancement toward boosting domestic manufacturing and reducing import reliance. With ₹180 crore dedicated to the marginal investment scheme, there is a significant push to develop a robust local supply chain, thereby lowering costs and spurring innovation. Additionally, ₹100 crore for clinical study support will help companies generate critical evidence for regulatory compliance, facilitating market expansion. For the medical device industry, these initiatives provide a strong foundation to drive innovation, enhance self-reliance, and position India as a global leader in medical technology.”
The Central government through the sub-scheme for common facilities for medical devices clusters, will provide financial assistance to medical device clusters for creating common infrastructure facilities including – design and testing centre, animal labs etc. for the manufacturers located in the cluster. The additional schemes aim to reduce dependence on imported components.
“Currently, most raw materials and key components are imported, making Indian manufacturers reliant on external supplies for medical device production. This sub-scheme offers a one-time capital subsidy of 10-20%, with a maximum cap of ₹10 crore per project,’’ a release issued by the Ministry noted.
Meanwhile, under the other schemes the Central government will offer financial support for running various Masters’ and short-term courses. Under the sub-scheme, support up to ₹21 crore for masters’ courses in central government institutions; and ₹10,000 per candidate for short-term courses along with ₹25,000 per candidate for Diploma courses to National Council of Vocational Education and Training approved institutes will be available.
Published – November 09, 2024 07:04 pm IST