India’s Rs 500 crore MedTech scheme to boost domestic manufacturing and export of medical devices

The Indian government’s newly launched Rs 500 crore MedTech scheme is expected to revitalise domestic manufacturing within the medical equipment sector, which has largely shifted towards importing and pseudo-manufacturing. The scheme, announced on Friday, seeks to enable Indian manufacturers to become global exporters of medical devices and respond to industry challenges, including skill shortages.

Domestic medical device manufacturers have welcomed the scheme, seeing it as a significant step towards enhancing skill development, bolstering export potential, and increasing manufacturing capacity. Rajiv Nath, Forum Coordinator of the Association of Indian Medical Device Industry (AiMeD), expressed optimism about the scheme’s impact, stating, “We are delighted with the announcement made by Minister for Chemicals and Fertilisers Mr JP Nadda for giving impetus to manufacturing of medical devices. The domestic players 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.”

Though the Rs 500 crore allocation may appear modest, industry leaders consider the scheme to be a strategic move. Nath highlighted its broader implications, describing it as a “ground-breaking strategy” that aligns with the national medical devices policy of 2023 and supports the government’s vision of positioning India as a global hub for medical device manufacturing.

India currently ranks as Asia’s fourth largest market for medical devices, with an industry worth USD 14 billion and exports of USD 3.7 billion. The MedTech scheme is anticipated to help domestic manufacturers grow the market size to USD 20 billion by 2026-2027, with the potential to reach USD 50 billion by 2030.

The scheme includes initiatives such as skill development, clinical study assistance, and shared infrastructure facilities, as well as promotion at both national and international levels. Financial support will be provided for establishing common infrastructure within medical device clusters, including research and development labs, as well as design and testing centres. Additionally, the scheme is expected to reinforce the MedTech supply chain by promoting local production of essential components.

Minister Nadda described the scheme as a “transformative initiative” that will drive India’s self-reliance in medical device production. Through financial support to industry associations and export councils, the scheme also aims to facilitate conferences, exhibitions, and other events to showcase Indian-made medical devices.

India’s medical device exports have already been on the rise, with a 13.8 per cent annual growth rate over the past three years, while imports have declined at a rate of -2.08 per cent during the same period. With the support provided by the MedTech scheme, the industry is now positioned to deliver cost-effective and innovative solutions across various product segments for both domestic and global markets. These segments range from diagnostic imaging and patient aids to dental products and orthopaedic implants, reflecting the sector’s expanding product portfolio.