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Government Initiatives Set to Boost India’s Medical Device Manufacturing Sector

India's medical device sector is witnessing transformative changes with recent government initiatives designed to propel the country into a global manufacturing hub for medical devices. Minister Naddaji, along with Minister of State Ms. Patel and

India’s medical device sector is witnessing transformative changes with recent government initiatives designed to propel the country into a global manufacturing hub for medical devices. Minister Naddaji, along with Minister of State Ms. Patel and Secretary of Pharmaceuticals Dr. Arunish Chawla, recently announced new incentives to encourage domestic production, reduce import dependency, and enhance India’s medical manufacturing capabilities.

PLI Scheme and Medical Device Parks

The government has launched several schemes to support this goal:

  1. Production Linked Incentive (PLI) Scheme: Running from FY 2020-21 to FY 2027-28, the PLI scheme offers a 5% financial incentive on incremental sales of eligible medical devices. With a budget allocation of INR 3,420 crore, the scheme has supported projects for producing critical medical equipment like MRI machines, CT scans, dialysis units, and heart valves. These initiatives aim to bolster domestic production and attract large investments from within and outside India, laying the groundwork for a self-reliant medical device industry.

 

  1. Medical Device Parks: The Department of Pharmaceuticals (DoP) is also investing in Medical Device Parks across states like Madhya Pradesh, Tamil Nadu, and Uttar Pradesh, allocating INR 100 crore per state. These parks are equipped with common infrastructure facilities, reducing manufacturing costs for domestic companies and encouraging local production. With a total funding of INR 400 crore, this scheme supports the creation of a more competitive production environment within India.

Industry Impact and Future Outlook

Rajiv Nath, Forum Coordinator for the Association of Indian Medical Device Industry (AiMeD), praised these initiatives as a “ground-breaking strategy” with the potential to drive India toward becoming a leading global hub for medical devices. He emphasized that the initiatives would encourage Indian manufacturers, many of whom have shifted to trading or import-dependent practices, to return to in-house production of complete products and components.

Despite a modest budgetary allocation, the government’s vision aligns with India’s National Medical Devices Policy 2023. The policy prioritizes the development of skilled manpower, enhanced R&D, and a substantial increase in clinical trials, underscoring the government’s commitment to making India self-sufficient in the medical devices sector by 2047.

These efforts mark a significant step forward in achieving India’s “Atmanirbhar Bharat” goal, ultimately positioning India as a competitive player in the global medical device market.

 

medgatetoday@gmail.com

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