Are there government incentives or policies for supporting medical device manufacturing?

The Indian government has implemented several initiatives to bolster domestic medical device manufacturing, aiming to reduce import dependence and position India as a global manufacturing hub. Key policies and incentives include:

1. Production Linked Incentive (PLI) Scheme for Medical Devices:

• Objective: To boost domestic production and attract substantial investments in the medical device sector.
• Financial Outlay: Approximately ₹3,420 crore.
• Incentives: Provides a 5% incentive on incremental sales (over the base year FY 2019-20) of medical devices manufactured in India.
• Duration: Incentives are available for five years, from FY 2020-21 to FY 2025-26.
• Target Segments:
  • Cancer care/radiotherapy medical devices.
  • Radiology and imaging devices (both ionizing and non-ionizing radiation products) and nuclear imaging devices.
  • Anesthetics and cardio-respiratory medical devices.
  • All implants, including implantable electronic devices.

This scheme aims to enhance domestic manufacturing capabilities and reduce reliance on imports for high-end medical devices.

2. Promotion of Medical Device Parks:

• Objective: To develop common infrastructure facilities, thereby reducing production costs and enhancing competitiveness.
• Financial Outlay: Approximately ₹400 crore.
• Support Provided: Financial assistance for creating common infrastructure in four medical device parks.
• Selected States:
  • Himachal Pradesh.
  • Madhya Pradesh.
  • Tamil Nadu.
  • Uttar Pradesh.

These parks aim to create a robust ecosystem for medical device manufacturing, offering facilities like testing labs, training centers, and effluent treatment plants.

3. Scheme for Promotion of Research and Innovation in Pharma MedTech Sector (PRIP):

• Objective: To encourage research and development in the pharmaceutical and medical technology sectors.
• Support Provided: Funding for research projects, innovation hubs, and startup incubation centers.

This initiative aims to foster innovation, leading to the development of new and improved medical devices.

4. National Medical Devices Policy:

• Objective: To provide strategic direction for the growth of the medical device sector.
• Key Focus Areas:
  • Regulatory streamlining.
  • Infrastructure development.
  • Facilitating R&D and innovation.
  • Human resource development.
  • Attracting investments.

The policy aims to create a conducive environment for manufacturing and innovation in the medical device sector.

5. Export Incentives:

• Objective: To enhance the global competitiveness of Indian medical device manufacturers.
• Support Provided: Financial incentives to offset costs associated with exports, such as reimbursements for hidden costs.

These incentives aim to boost exports, with projections suggesting that India’s med-tech exports could reach USD 20 billion by 2030, provided there is continued government support.

6. Credit Guarantee Schemes for MSMEs:

• Objective: To facilitate access to credit for Micro, Small, and Medium Enterprises (MSMEs) in the manufacturing sector.
• Support Provided: Credit guarantees for loans to MSMEs, enabling them to acquire machinery and equipment without collateral.

This initiative supports smaller manufacturers in scaling up operations and adopting advanced technologies.

These government initiatives collectively aim to strengthen India’s medical device manufacturing sector, promoting self-reliance, innovation, and global competitiveness.