Gujarat Inks Series of Investment MoUs worth INR 1,770 Cr in MedTech, Other Sectors

MoUs were signed for a proposed investment of INR 1770 Cr in pharma, medical devices, biological manufacturing, medicines, injections, tablets, capsules, and bulk drug production.

In a significant move to boost the medical technology sector and other industries, the Gujarat government has inked Memorandums of Understanding (MoUs) worth INR 1,770 Cr.

This strategic move is part of a broader initiative to reduce India’s dependency on medical device imports and increase domestic production.

MoUs were signed for a proposed investment of INR 1770 Cr in pharma, medical devices, biological manufacturing, medicines, injections, tablets, capsules, and bulk drug production.

These initiatives are expected to generate new employment opportunities and involve sectors such as chemical and dyes, agrochemicals, speciality chemicals, gold refining and processing, safety protection ware, food works, carbon chemicals, solar modules, and cell manufacturing. Most of these units will start their operations by 2024-25.

Apart from the Pharma sector, MoUs were also signed for INR 3,000 Cr estimated investment in the engineering, auto and auto components sector, INR 205 Cr in logistic parks and INR 140 Cr in man-made spinning yarn fabric production.

In total, the 8 signed MoUs proposed an estimated investment of INR 5,115 Cr. Ahead of the Vibrant Gujarat Global Summit 2024, so far 47 MoUs are signed for proposed investments of INR 26,000 Cr.

India currently imports approximately 80% of its medical devices from foreign suppliers, including high-end equipment for ultrasonic scans, polymerase chain reaction (PCR) tech, medical imaging, and cancer diagnostics. Between FY 2021-22 to 2020-21, India’s medical device imports have increased from INR 44,708 Cr to INR 63,200 Cr, showing a 41% growth.

The growth in demand for certain types of medical devices such as surgical instruments, IVD reagents, implants, disposables, electronic equipment, and consumables has been observed. The government is implementing several measures to increase domestic production and reduce dependency on imports.

Gujarat has been making several healthcare initiatives such as Zydus Hospitals and Medtronic launched Gujarat’s first AI stroke care network. The collaboration addressed this disparity by implementing a hub and spoke system, where AI technology is used to interpret CT scans for stroke diagnosis.

In September this year, the Government of Gujarat launched its medical device park in Nagalpar, near Rajkot. The project, spanning an expansive 250 acres, is on track to be operational by the close of 2024. The medical device park has been designed to be a commercially viable and economically sustainable venture. It is poised to become a magnet for investments, with an anticipated influx ranging from 100 to 150 million USD over the next three years.