India unveils ₹500-Crore initiative to boost domestic medical device manufacturing

In a strategic thrust to enhance India’s medical device sector, Union Minister for Chemicals and Fertilizers, J.P. Nadda, launched a ₹500-crore initiative on Friday. Designed to propel the country toward self-sufficiency in medical device manufacturing, the scheme addresses vital components such as research infrastructure, clinical trials, import substitution, and human resource development.

Announcing the initiative, Minister Nadda lauded the scheme as a “game-changer” for the domestic industry. “These interventions may seem modest individually,” he said, “but their cumulative impact promises transformative results for India’s healthcare landscape.”

This policy shift aims to reduce the industry’s heavy reliance on imports, which currently account for 65-75 percent of medical devices used in India. With a current market value of $14 billion and a projected growth to $30 billion by 2030, the government’s initiative is timely and ambitious.

The scheme features five sub-schemes targeting specific industry needs:

1. Common facilities for medical device clusters
The ministry has earmarked ₹110 crore to establish R&D labs, testing facilities, and design centers in cluster-based locations, providing critical infrastructure for small and medium-sized enterprises.

2. Import reduction subsidies
This sub-scheme offers up to ₹10 crore per project to incentivize local manufacturers to produce essential components domestically. With a budget of ₹180 crore, it aims to reduce India’s dependency on imported materials and boost the local supply chain.

3. Skill development initiatives
A ₹100-crore fund will support master's and diploma programs in medical device development, offering financial backing to institutions for specialized training and upskilling programs.

4. Clinical trials and animal studies support
With a long-standing industry need for clinical research funding, the ministry has allocated up to ₹5 crore per project for animal and human trials, addressing a crucial gap in product validation and safety testing.

5. Promotional support for the medical device industry
To promote innovation and global competitiveness, ₹10 crore will fund conferences, exhibitions, and export initiatives, helping Indian manufacturers showcase their products internationally.

Industry leaders welcomed the scheme enthusiastically. Rajiv Nath, Coordinator of the Association of Indian Medical Device Industry, praised it as “a historic moment,” adding, “It is a signal to all Indian manufacturers that the government stands ready to back local production and innovation.”

As India moves toward its ambitious goal of self-reliance, the ₹500-crore initiative represents a pivotal investment in an industry essential for national healthcare and economic growth. The medical device sector is set to play a crucial role in India’s future, and with targeted support, it may soon rival global players in both innovation and scale.