India’s Medical Device Industry Welcomes INR 500 Cr Government Scheme

Industry leaders believe the scheme could elevate India’s position as a global medical technology market player.

The Indian medical device sector has welcomed the government’s new INR 500 Cr scheme to enhance domestic manufacturing and reduce reliance on imports.

Launched by Union Health Minister JP Nadda on Friday, the Medical Devices Clinical Studies Support Scheme aims to strengthen the industry by supporting high-quality production, developing shared infrastructure, and funding clinical studies.

Industry leaders believe the scheme could elevate India’s position as a global medical technology market player.

Industry Reaction

According to industry representatives, the initiative marks a substantial investment in India’s medtech sector, aiming to foster growth and increase exports.

Himanshu Baid, Managing Director of Poly Medicure, highlighted the potential for collaboration and cost efficiency in the scheme’s focus on shared facilities.

“Key initiatives such as the identification of common facilities for medical device clusters will encourage collaboration, innovation, and cost efficiency,” Baid said, adding that skill development efforts could bridge current talent gaps in manufacturing and clinical expertise.

The scheme identifies five critical areas for support: manufacturing essential components and accessories, skill development, clinical study support, shared infrastructure, and industry promotion.

According to Pavan Choudary, Chairman of the Medical Technology Association of India (MTaI), this targeted approach follows comprehensive research.

“The efforts helped identify key areas where the industry needs support,” said Choudary. He emphasized that the scheme aims to drive self-reliance and strengthen India's medical devices manufacturing ecosystem.

Support for Established Firms & Startups Alike

According to Choudary, the scheme is expected to benefit both emerging startups and established companies in the sector.

“The industry promotion stimulus will pave the way for vitally important market research and marketing of the industry to the world,” he said.

Industry experts believe the initiative’s inclusive approach will enable the industry to tap into both local and global opportunities, creating a more resilient ecosystem.

Rajiv Nath, Forum Coordinator for the Association of Indian Medical Device Industry (AiMeD), expressed optimism about the scheme’s potential to revitalize domestic manufacturing.

He noted that many Indian medical device manufacturers had turned to imports or pseudo-manufacturing but would now be encouraged to build complete products and components in-house.

“The Indian medical devices manufacturers who had become traders and importers and shifted to pseudo manufacturing will now be again motivated to become actual manufacturers and produce complete products and their components in-house,” Nath remarked.

Major Funding for Local Supply Chains & Clinical Studies

Of the total INR 500 Cr, INR 180 Cr has been explicitly allocated to a Marginal Investment Scheme to develop a robust local supply chain.

Anish Bafna, CEO and Managing Director of Healthium Medtech and Secretary of the healthcare industry body Nathealth, views this as a crucial step in reducing import costs and fostering innovation within India.

“With INR 180 crore dedicated to the Marginal Investment Scheme, there is a significant push to develop a robust local supply chain, thereby lowering costs and spurring innovation,” he stated.

Furthermore, INR 100 Cr will go toward clinical study support, a move seen as crucial for companies aiming to meet regulatory standards in domestic and international markets.

Bafna noted that this allocation could aid companies in generating evidence required for compliance, thereby facilitating market expansion.

“For the medical device industry, these initiatives provide a strong foundation to drive innovation, enhance self-reliance, and position India as a global leader in medical technology,” he stated.

This government-backed initiative is expected to help the Indian medical device industry manufacture globally competitive products, ultimately reducing dependence on imports and improving the country’s footprint in international markets. Stay tuned for more such updates on Digital Health News.