Government Initiatives Boosting India’s Medical Device Manufacturing Industry
The Indian government has implemented several strategic initiatives to bolster the domestic medical device manufacturing industry, aiming to reduce import dependence, enhance self-reliance, and position India as a global hub for medical devices.
1. Production Linked Incentive (PLI) Scheme for Medical Devices:
Launched to promote domestic manufacturing of high-end medical devices, the PLI scheme offers financial incentives to manufacturers based on their incremental sales. This initiative encourages investment in local production and aims to reduce reliance on imports.
2. Promotion of Medical Device Parks Scheme:
This scheme focuses on developing medical device parks equipped with world-class infrastructure and common facilities to support manufacturing. The goal is to create a robust ecosystem that fosters innovation and competitiveness in the medical device sector.
3. Scheme for Strengthening of Medical Device Industry (SMDI):
In November 2024, the government introduced the SMDI with a budget of ₹500 crore. The scheme targets critical areas such as manufacturing, skill development, clinical studies, infrastructure, and industry promotion to make India self-reliant in the medical device sector.
4. Establishment of Medical Device Parks:
The government has initiated the development of medical device parks in various states, including Andhra Pradesh, Telangana, Tamil Nadu, and Kerala. These parks provide state-of-the-art infrastructure and facilities to support manufacturing and innovation in the medical device industry.
5. Andhra Pradesh MedTech Zone (AMTZ):
Located in Visakhapatnam, AMTZ is India’s first dedicated medical device manufacturing park. It offers common manufacturing facilities and scientific services, significantly reducing the cost of manufacturing and increasing competitiveness.
6. Biomedical Engineering and Technology Innovation Centre (BETiC):
Based at IIT Bombay, BETiC is an interdisciplinary initiative for medical device innovation. It has developed numerous medical devices and licensed several to startups for mass production, fostering a culture of innovation and entrepreneurship.
7. ‘Make in India’ Initiative:
The ‘Make in India’ campaign aims to transform India into a global manufacturing hub. In the medical device sector, this initiative encourages both domestic and international companies to manufacture within India, enhancing self-reliance and boosting exports.
8. Financial Support and Incentives:
The government provides various financial incentives, including tax benefits and subsidies, to encourage investment in the medical device sector. These measures aim to lower production costs and make Indian products more competitive globally.
Impact of Government Initiatives:
These concerted efforts have led to significant growth in India’s medical device industry, which is valued at approximately $14 billion and is expected to reach $30 billion by 2030. The initiatives have also fostered innovation, improved infrastructure, and enhanced the global competitiveness of Indian medical devices.
