India Unveils Rs 500 Crore MedTech Scheme to Boost Domestic Manufacturing

The Indian government's recently introduced Rs 500 crore MedTech initiative is anticipated to rejuvenate local production in the medical equipment industry, which has largely transitioned to importing and superficial manufacturing. The initiative aims to empower Indian producers to transform into international exporters of medical devices and tackle industry issues, such as skill deficits.

Domestic medical device producers have embraced the initiative, viewing it as a crucial move to improve skill development, strengthen export capabilities, and expand manufacturing capacity. Rajiv Nath, the Forum Coordinator for the Association of Indian Medical Device Industry (AiMeD), conveyed positivity regarding the scheme’s effects, 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.”

While the Rs 500 crore budget might seem relatively small, industry executives view the initiative as a strategic step. Nath emphasized its wider significance, calling it a “ground-breaking strategy” that complements the national medical devices policy of 2023 and bolsters the government’s aim of establishing India as a global center for medical device production.