Upcoming Medical Device Park in India
In pursuit of its vision to transform India, the government has launched a series of initiatives aimed at establishing Medical Device Parks across the country. Recent years have witnessed a significant upsurge in the medical industry’s growth, prompting the government to acknowledge the sector’s potential. These Medical Device Parks are purposefully designed to foster and facilitate advancements in medical facilities, infrastructure, innovation, and manufacturing within the healthcare industry.
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For quite some time, India’s leadership has held the conviction that the manufacturing-oriented economic growth model, which has yielded remarkable success in Northeast Asian nations such as China, Japan, and South Korea, can be emulated within India. Similar to China, India boasts a substantial reservoir of both skilled and unskilled labor, a pivotal element in establishing itself as a cost-effective manufacturing hub and a prominent exporter.
Initiatives such as “Make in India” and “Atmanirbhar Bharat Abhiyaan” have provided a significant impetus to domestic medical device manufacturing.
To further promote domestic production and enhance related infrastructure, the Indian government has approved the following schemes:
- Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices.
- Promotion of Medical Device Parks.
Production Linked Incentive (PLI) Scheme for Medical Devices:
The Production Linked Incentive (PLI) scheme for promoting domestic manufacturing of medical devices has been introduced to stimulate local production and attract substantial investments in the sector. The scheme is allocated a total budget of approximately INR 3,420 Crores.
Incentives under the scheme will be provided for a five-year period, from FY 2020-21 to FY 2025-26. Companies seeking these incentives will need to meet specific investment and production thresholds and fulfill the eligibility criteria to qualify for the scheme’s benefits.
Promotion of Medical Device Parks:
The Scheme for Promotion of Medical Device Parks has been instituted to develop shared infrastructure facilities, ultimately reducing the production costs of medical devices manufactured in India. This scheme is allocated a total budget of about INR 400 Crores.
Under this initiative, financial support will be extended for establishing Common Infrastructure Facilities (CIFs) in four selected medical device parks. The assistance rate will be 90% of the project cost in northeastern and hilly states, while it will be 70% in other states. Each medical device park project recommended by a state and selected under the scheme will be executed by a State Implementation Agency (SIA) and can receive a maximum assistance of INR 100 Crores. This scheme is valid for a five-year period, from FY 2020-21 to FY 2024-25.
The Objectives of the Scheme for Promotion of Medical Devices Parks:
Recognizing the imperative for increased investments in building proper infrastructure in the medical device sector, the Department of Pharmaceuticals has established the “Scheme for Promotion of Medical Device Parks” with the following objectives:
- To create world-class infrastructure facilities to position India’s medical device industry as a global leader.
- To facilitate easy access to standard testing and infrastructure facilities through the establishment of world-class Common Infrastructure Facilities. Read about manufacturing facility compliance.
- To reduce the cost of medical device production significantly.
- To improve the availability and affordability of medical devices in the domestic market.
- To harness the benefits of resource optimization and economies of scale.
Key Features of the Scheme:
The scope of the “Scheme for Promotion of Medical Device Parks” encompasses the following:
- Financial support for establishing CIFs in four selected medical device parks under the scheme.
- A financial assistance rate of 90% of the project cost in northeastern states and hilly regions, and 70% in other states.
- Each medical device park project, proposed by a state and approved under the scheme, will be executed by a State Implementation Agency (SIA), with a maximum assistance limit of Rs. 100 Crores.
- The scheme is operational for a five-year period, from FY 2020-21 to FY 2024-25.
Here Are Some of the Major Medical Device Parks in India:
- Andhra Pradesh MedTech Zone (AMTZ): Located in Visakhapatnam, Andhra Pradesh, AMTZ is one of the largest and most prominent medical device manufacturing hubs in India. It is a comprehensive facility that offers infrastructure and support for medical device manufacturing and innovation.
- Kerala Medical Devices Park (KMDP): Situated in Wayanad, Kerala, this park aims to promote the production of medical devices and components, particularly focusing on affordable and high-quality medical equipment.
- Haryana MedTech City: This proposed medical device park is planned for development in the state of Haryana. It is expected to provide an integrated ecosystem for the medical device industry, including manufacturing and research facilities.
- MedTech Zone in Telangana: Telangana also proposed the development of a medical device manufacturing zone to promote the domestic production of medical devices and equipment.
According to the data accessible through different sources, Under the plan, on a fundamental level endorsement has been given for the development of 4 parks in Uttar Pradesh, Himachal Pradesh, Tamil Nadu, and Madhya Pradesh. An absolute monetary help of Rs 400 crore will be given under this plan. The length of this plan has been fixed from 2020-21 to 2024-25. The setup will be in Ujjain M.P, Kancheepuram Tamil Nadu, Nalgarh solon locale H.P & Gautam Buddha nagar U.P. To lessen the import reliance of the Nation government is empowering Medical Device Park advancement. It will assist India with turning into a central part of the worldwide front.
How Operon Strategist Will Help You?
As one of the leading medical device regulatory consulting firms in India, Operon Strategist can assist global manufacturers in setting up businesses in medical device parks in India. We also help with medical device manufacturing project management to set up their plant as Turnkey Project Consultants. Contact us now.
