The Indian government’s recent announcement of a Rs 500 crore MedTech scheme is set to energize the country’s medical device manufacturing industry, enabling domestic players to regain their footing and potentially expand into the export market. Industry insiders believe the scheme will help reverse a long-standing trend where local manufacturers, driven by market pressures, largely resorted to trading and pseudo-manufacturing.

Medical device manufacturers across India welcomed the scheme, which they say addresses critical challenges like the industry’s skill shortage and the need to strengthen export opportunities. Rajiv Nath, Forum Coordinator of the Association of Indian Medical Device Industry (AIMED), expressed optimism about the scheme, crediting Minister for Chemicals and Fertilizers, Mr. JP Nadda, for championing the initiative. “We are delighted with Minister Nadda’s announcement, which gives much-needed impetus to local manufacturing. Many domestic players who turned to importing and pseudo-manufacturing can now reorient toward in-house production of complete products and components,” Nath said.

Although the budget allocated to this scheme may seem modest, Nath emphasized that it represents a strategic step towards realizing the Prime Minister’s vision of making India a global hub for medical device manufacturing by 2023. He believes that the scheme’s multiplier effect will help steer India’s medical device industry toward substantial growth, positioning it as a major player on the global stage.

India currently exports medical devices worth USD 3.7 billion, making it the fourth-largest market in Asia, with a domestic market size of USD 14 billion. The MedTech scheme is expected to help Indian manufacturers capture a larger market, aiming for USD 20 billion by 2026-2027. The scheme also includes essential components for industry growth, such as skill development, clinical study support, shared infrastructure, and promotion of the sector both nationally and internationally.

Minister Nadda described the scheme as transformative, underscoring that it will support India’s path toward self-reliance in medical equipment manufacturing. The plan outlines financial assistance for medical device clusters to establish infrastructure like R&D labs, design centers, and testing facilities. This will enhance the MedTech supply chain by encouraging local manufacturing of critical components, reducing reliance on imports.

In addition to infrastructure, the scheme provides funding for industry associations and export councils to organize conferences and exhibitions, positioning India’s MedTech industry on the global stage. With a growing portfolio that includes everything from consumables to advanced diagnostic and therapeutic devices, the Indian medical device manufacturing sector is poised to offer cost-effective, innovative products for both domestic and international markets. Key product segments include diagnostic imaging, consumables, patient aids, dental products, and orthopedic implants.

Notably, the growth rate of medical device exports from India has outpaced imports, with exports rising at an annual rate of 13.8% over the past three years, while imports have declined by 2.08%. With the MedTech scheme, the industry is expected to grow to USD 50 billion by 2030, reflecting the enormous potential for expansion.

This new government-backed scheme marks a pivotal shift, creating opportunities for the domestic industry to transition from traders to true manufacturers and contributing to India’s mission of establishing itself as a leader in the global MedTech market.