Modi Government To Push Indian Medical Device Sector Amongst Top 5 Global Manufacturers
The Indian medical device sector is getting a big boost with the Narendra Modi government looking at making Indian imports cut down to half in the next 10 years. This is going to the government’s first draft policy exclusively for the industry, which until now has been kept under the policy to regulate pharmaceuticals.
According to the approach paper on draft National Medical Devices Policy 2022, released by the department of pharmaceuticals, “the medical devices sector will be placed on an accelerated growth path” to increase access and affordability of products. This department comes under ministry of chemicals and fertilizers.
Removing itself from depending on imports, the intent is to move towards achieving 10-12% of the global market share of the medical devices sector to arrive at a $100-300 billion industry. This has been stated clearly in the draft while adding that the country will have about 50 clusters for faster clinical testing of medical devices to boost product development and innovation.
Up until now, the industry had been kept under the policy to regulate the pharmaceuticals. With this, India will become one of the top five global manufacturing hubs of the world.
The announcements come after Union Minister Mansukh Mandaviya spoke openly about the need for growth in the medical device sector. He felt concrete efforts need to be made towards increasing local production of medical devices while stressing that the sector has huge potential for growth in the domestic as well in global markets, the Chemicals and Fertilizers Ministry.
Mandaviya was interacting with six industry participants of the PLI schemes for medical devices that have successfully commissioned projects. The Department of Pharmaceuticals has already launched the PLI scheme for promoting domestic manufacturing of medical devices in March 2020.
Under the scheme, financial incentive is given to selected companies at the rate of 5 per cent of incremental sales of medical devices manufactured in India and covered under the target segments of the scheme, for a period of five (5) years till 2027-28.
The total financial outlay of the scheme is Rs 3,420 crore.