Focus on Local Affordable Medical Device Manufacturing
In a significant move to cut down import dependence, the government has announced plans to promote the local manufacturing of 113 affordable medical devices over the next five years. This initiative aims to leverage the country’s existing strengths by supporting both Indian companies and multinational corporations with manufacturing units in India.
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Identified Segments and Products
Medical devices identified for promotion span eight key segments: cancer therapy, imaging, assistive medical devices, body implants, surgical instruments and hospital equipment, consumables and disposables, in-vitro diagnostic instruments, and reagents. Specific products include cochlear implants, breast implants, knee and hip implants, hearing aids, contact lenses, X-ray machines, ultrasound machines, chemotherapy devices, ventilators, defibrillators, dialysis machines, syringes, stethoscopes, surgical gowns, drapes, masks, and diagnostic kits for pregnancy, mosquito-borne diseases, TB, HIV, and other sexually transmitted diseases.
Enhancing Export Competitiveness
According to the Department of Pharmaceuticals (DoP) under the Ministry of Chemicals and Fertilisers, the roadmap for this initiative includes a significant boost to export competitiveness through value-added manufacturing, aiming to elevate the import coverage ratio to 1 within five years. This ratio has already improved from 0.34 in 2021-22 to 0.46 in 2023-24.
Current Import and Export Statistics
In the fiscal year 2023-24, India imported medical devices worth $8,188 million while exporting equipment worth $3,785 million. Major exports included consumables and disposables like masks, syringes, gloves, catheters, and imaging equipment such as X-ray and ultrasound machines.
Production Linked Incentive (PLI) Scheme
Under the Centre’s Production Linked Incentive (PLI) scheme, introduced in 2020, support has been extended for setting up four medical device parks in Himachal Pradesh, Madhya Pradesh, Tamil Nadu, and Uttar Pradesh. So far, 26 projects have been approved with a committed investment of Rs 1,206 crore, out of which Rs 958 crore has already been invested. Fourteen projects producing 37 products have been commissioned, leading to the domestic manufacturing of high-end medical devices such as linear accelerators, MRI scans, CT scans, mammograms, and high-end X-ray tubes.
Government’s Goals
DoP Secretary Arunish Chawla emphasized the government’s goal to reduce import dependence from the current 75% to 50% in the next five years, highlighting a compound annual growth rate (CAGR) of 13.9% for exports and 8.6% for imports over the past four years.
