In addition to fulfilling its own demands, India caters to a considerable portion of the world’s needs for generic medicines and low-cost vaccines. Hence, it has earned the name “pharmacy of the world”. However, when it comes to medical devices, India’s medical device production capacity is lagging behind. It is heavily dependent on imported devices. An effective healthcare industry requires adequate supply of both pharmaceuticals and medical devices. Thus, the Indian government is planning to provide capital subsidy for domestic medtech production.

In India, healthcare remains unaffordable for many owing to high cost. As most medical devices have to be imported, diagnosis using these imported medical devices becomes expensive. This makes healthcare unaffordable for the majority of the population. Hence, the government is launching many schemes to boost the domestic production of medical devices. Capital subsidy for domestic medtech production is one such scheme. These schemes will support local production of medical devices, which will make them affordable. Hence, diagnosis using domestically manufactured medical devices will be affordable and accessible to many in India.

Capital subsidy for domestic medtech manufacturing: A government scheme

Medical devices and even sometimes the components used to manufacture medical devices in India have to be imported. For medical devices manufactured in India using imported components, final cost of the devices is still high.

Hence, the Indian government has launched a new scheme offering 20% capital subsidy on marginal investments to companies manufacturing essential components for digital X-ray, CT scan, MRI, and similar devices. This capital subsidy for domestic medtech manufacturing will boost domestic medical device production. Although a certain volume of digital X-ray, CT scan, and MRI machines is being manufactured in India, imported components are used in their production process. This increases the costs of domestically manufactured digital X-ray, CT scan, and MRI machines. This new scheme will considerably bring down the cost of digital X-ray, CT scan, and MRI machines by covering the upfront capital cost of manufacturing their components. Furthermore, the Union budget has reduced customs duties for X-ray tubes and flat panel detectors. These components are crucial for digital X-ray machines. 

All these schemes will collectively reduce the cost of digital X-ray, CT scan, and MRI machines manufactured in India. Hence, the cost of medical imaging and diagnosis will also considerably reduce. Hence, the government will achieve its aim of making quality healthcare accessible to all in India. High quality medical imaging devices that have a vital role in diagnosis will be available in primary healthcare centres across India. Furthermore, affordable and high-quality medical devices manufactured in India will enhance the effectiveness of healthcare delivered.

Furthermore, the Department of Pharmaceuticals had organised the Meditech Stackathon 2024. The goal was to address the challenges, such as regulatory hurdles and high import dependence, faced by the medical devices sector. Additionally, the domestic medical device production industry has to catchup with the advancement in technologies used worldwide.

Pharmadocx Consultants: Your trusted CDSCO medical device manufacturing license support

The Indian government is working towards its goal of making India a global hub for manufacturing medical devices. By offering 20% capital subsidy for domestic medtech component production, the government is taking small steps towards achieving its goal. By domestically manufacturing the components required for medical imaging devices, India can locally manufacture medical devices at cheaper costs. Hence, various entities are trying to tap into the potential of the Indian medical device manufacturing industry. If you are planning to enter the medical device manufacturing industry, you will be requiring a CDSCO medical device license. Securing a CDSCO medical device manufacturing license is a cumbersome task. However, with the help from our team of experts, this is going to be a cake walk. Drop an email at [email protected] or call/Whatsapp on 9996859227 and our team will get back to you.