In a bid to reduce India’s heavy reliance on foreign imports and transform the country into a hub for medical device manufacturing, the government has announced a Rs 500 crore scheme to strengthen the medical devices sector. Experts believe this initiative will stimulate local production, drive innovation, and enhance India’s competitiveness in the global MedTech market.
Unveiled last week by Union Minister for Chemicals and Fertilisers Jagat Prakash Nadda, the scheme targets five key areas: infrastructure development for medical device clusters, reducing import dependence, skill development, support for clinical studies, and the promotion of industry activities.
One of the scheme’s most important features is its focus on reducing India’s import reliance, which has been challenging for the medical device sector. A substantial Rs 180 crore has been allocated for the Marginal Investment Scheme, designed to incentivise the local production of essential components that make up a significant portion of India’s medical device imports.
With capital subsidies of up to Rs 10 crore per project, the scheme aims to encourage domestic manufacturing and reduce dependence on foreign products. “Scheme is going to be a game-changer and it will not only help the industry but will also be a long leap in making India self-reliant,” said Nadda.
Fostering innovation and collaboration
Industry leaders have welcomed the scheme as a crucial step towards building a sustainable, self-reliant ecosystem. “The scheme’s focus on identifying shared facilities for medical device clusters will promote collaboration and innovation. These clusters will enhance cost-efficiency, drive innovation, and provide manufacturers with access to high-quality resources without the burden of high overhead costs,” said Himanshu Baid, Managing Director of Poly Medicure Ltd. Rs 110 crore has been allocated for the development of R&D labs and testing centres within these clusters.
Building a skilled workforce
For India to truly become self-reliant in the medical device sector, a skilled workforce is essential. With this in mind, Rs 100 crore has been earmarked for skill development initiatives. The funds will support advanced and short-term courses at various institutions, equipping the workforce with the necessary expertise in manufacturing and clinical practices. “These training programs will bridge the talent gap, ensuring India produces high-quality products that meet domestic and international standards,” said Anish Bafna, CEO of Healthium Medtech.
Supporting clinical research and regulatory approvals
An additional Rs 100 crore has been set aside to support clinical studies, enabling companies to conduct animal and human trials to validate their products for regulatory approvals. “This will not only benefit India’s manufacturing sector but also elevate the country’s status in international markets by offering a steady supply of high-quality, regulatory-compliant products,” Baid said.
Promoting industry growth
Furthermore, Rs 10 crore has been allocated to support industry activities such as conferences, exhibitions, and global marketing efforts. Rajiv Nath, Forum Coordinator of the Association of Indian Medical Device Manufacturers (AiMeD), highlighted the significance of showcasing India’s medical device sector globally. “This initiative could reinvigorate India’s manufacturers, encouraging them to shift from trading and pseudo-manufacturing to full-scale, in-house production of medical devices and components,” Nath said.
Roadmap to self-reliance?
India’s medical device industry, valued at $14 billion, faces the dual challenge of limited domestic production and high import reliance. However, industry leaders believe that the Rs 500 crore scheme marks a critical first step toward addressing these issues.
While the scheme offers a significant boost, experts emphasise that achieving self-reliance will require more than just financial support. It will depend on fostering genuine innovation, building a robust local supply chain, and creating a skilled workforce to meet the needs of an expanding sector.
The government’s introduction of the National Medical Devices Policy 2023 further supports these ambitions. The policy outlines a comprehensive framework to make India a global leader in medical device manufacturing by reducing import dependency and fostering domestic production.
Key components of the policy include the establishment of medical device parks and clusters, which aim to drive research, development, and cost-efficiency while improving access to high-quality, affordable medical devices. The policy aligns with India’s broader healthcare vision, focussing on enhancing exports, creating skilled jobs, and promoting participation from both public and private sectors.