India to Offer 20% Subsidy for Domestic MedTech Component Production

India to Offer 20% Subsidy for Domestic MedTech Component Production

New Government Initiative to Boost MedTech Manufacturing in India

The Indian government is set to introduce a new scheme aimed at incentivizing the domestic manufacturing of components crucial for medical technology devices such as digital X-ray, CT scan, and MRI machines. This initiative is part of a broader effort to reduce the country's reliance on imports and to make medical imaging more affordable.

Key Details of the Initiative:

  • Capital Subsidy for Manufacturers:
    • The government plans to offer a 20% capital subsidy on marginal investments made by select companies involved in the manufacturing of essential components for digital X-ray, CT scan, and MRI machines. This move is expected to encourage local production and bring down the cost of these devices.
  • Budget Announcements and Custom Duty Adjustments:
    • In the Union Budget 2024-25, the government announced a reduction in customs duty on key components such as X-ray tubes and flat panel detectors. These components are vital for the production of digital X-ray machines, and the reduction in customs duty is expected to make these devices more affordable.
  • Phased Manufacturing Programme (PMP):
    • The Department of Pharmaceuticals had earlier notified a Phased Manufacturing Programme (PMP) on January 22, 2021, to promote domestic manufacturing of medical X-ray machines and their components. However, due to the industry's concerns about the lack of domestic manufacturing capacity, the PMP schedule has been revised.
  • MedTech Stackathon 2024:
    • The MedTech Stackathon 2024, organized by the Department of Pharmaceuticals in collaboration with industry stakeholders, aims to identify and address critical challenges hindering the development of the medical devices industry in India. Issues such as import dependence, regulatory hurdles, and technological gaps are being addressed through this initiative.

Impact on Healthcare:

The initiative is expected to significantly reduce the cost of medical imaging devices in India, making them more accessible, especially in primary health centers across the country. Currently, digital X-ray machines imported from countries like the US and China are priced between ₹18 lakh to over ₹1 crore. With successful domestic manufacturing, these costs could be significantly reduced, leading to more affordable healthcare for the public.

Conclusion:

India has long been recognized as the pharmacy of the world due to its low-cost generic medicines and vaccines. However, the country remains heavily dependent on imports for medical devices, with nearly 70% of these products sourced from abroad. The new scheme aims to change this dynamic, fostering a robust domestic MedTech industry that can meet the nation's needs while reducing costs and enhancing healthcare accessibility.