Government’s Rs. 1,000 Crore Fund Boosts Growth of Indian Medical Device Manufacturers

The Indian government has launched a comprehensive scheme with an initial outlay of ₹500 crore to strengthen the country’s medical devices industry. This initiative aims to boost domestic manufacturing, reduce import dependence, and position India as a global leader in medical technology.

Key Components of the Scheme:

1. Common Facilities for Medical Device Clusters:
   • Financial assistance is provided to develop shared infrastructure such as R&D labs, design and testing centers, and animal labs within medical device clusters.
   • Grants of up to ₹20 crore for common facilities and up to ₹5 crore for testing facilities are available.
2. Marginal Investment Support to Reduce Import Dependence:
   • Encourages local manufacturing of key components, raw materials, and accessories to decrease reliance on imports.
   • Offers a one-time capital subsidy of 10-20%, capped at ₹10 crore per project.
3. Capacity Building and Skill Development:
   • Aims to develop a skilled workforce capable of designing and developing innovative medical technology products.
   • Financial support includes up to ₹21 crore for master’s courses in central government institutions and ₹10,000 per candidate for short-term courses in NCVT-approved institutes.
4. Support for Clinical Studies:
   • Assists companies and startups in conducting clinical studies to validate new medical devices.
   • Provides up to ₹2.5 crore for animal studies and up to ₹5 crore for clinical investigations and post-market follow-ups.
5. Medical Device Promotion Activities:
   • Offers financial assistance to industry associations and export councils for organizing conferences, conducting surveys, and other promotional activities.

Industry Response:

The medical devices industry has welcomed this scheme, highlighting its potential to accelerate growth, reduce import reliance, and enhance India’s position as a leading exporter of medical devices. Industry leaders emphasize that initiatives like developing common facilities will encourage collaboration, innovation, and cost efficiency.