Gujarat to Set Up INR 250 Cr Medical Device Park in Rajkot

The Gujarat Industrial Development Corporation (GIDC) is spearheading the development of the medical device park.

The government of Gujarat plans to set up an INR 250 Cr, medical device park at Nagalpar, near Rajkot. The park claims to be India’s first medical device park in India to be entirely funded by the Gujarat government. However, the state government will start making the medical device park by the end of 2025.

The Gujarat Industrial Development Corporation (GIDC) is spearheading the development of the medical device park.

The Nagalpar Medical Device Park is envisioned as a commercially viable and economically sustainable initiative. It aims to attract investments of $100 million to $150 million over the next three years from potential medical device companies that will establish factories there.

Further, the medical device park is expected to host approximately 400 companies, significantly boosting the region's economy and contributing to the advancement of the MedTech sector.

Commenting on the ambitious project, Dr HG Koshia, the commissioner of the Gujarat Food and Drug Control Administration (FDCA), said, "Nagalpar is an engineering hub, and establishing a medical device park here promises a high return on investment (RoI). The park will support research and development, testing, manufacturing, training, and incubation for medical device companies.”

This initiative aligns with broader efforts to promote domestic manufacturing and reduce India's dependence on imported medical devices.

The park will provide common facilities and infrastructure to support the medical device industry, fostering innovation and enhancing the competitiveness of Indian manufacturers in the global market.

Boosting Domestic Manufacturing

The Government of India has launched several schemes to support domestic manufacturing of medical devices and bulk drugs.

Under the "Promotion of Medical Devices Parks" scheme, the central government had earlier approved financial assistance of INR 100 Cr each for medical device parks in Uttar Pradesh, Tamil Nadu, Madhya Pradesh, and Himachal Pradesh.

These funds aim to establish common facilities in these states to support the medical device industry.

Additionally, under the sub-scheme "Assistance to Medical Device Industry for Common Facility Centre," a grant-in-aid of INR 25 Cr was provided to the Andhra Pradesh Medtech Zone (AMTZ).

This funding supports the establishment of a common facility for testing and research on superconducting magnetic coils, furthering the capabilities of the medical device sector in the region.

PLI Scheme for Medical Devices

The central government has also introduced a production-linked incentive (PLI) scheme to promote domestic medical device manufacturing.

The scheme, which costs INR 3,420 Cr, covers the period from FY 2020-21 to FY 2027-28. It offers financial incentives to selected companies, providing 5% of the incremental sales of medical devices manufactured in India over five years.

The scheme targets four key segments within the medical device industry, aiming to boost domestic production and reduce reliance on imports.