India’s medical devices sector has historically been heavily reliant on imports, over 70–80% of devices were imported as recently as a few years ago. In response, the Government of India has launched multiple policy initiatives such as Make in India, Atmanirbhar Bharat, and targeted manufacturing schemes to transform the country into a self-reliant MedTech manufacturing hub. This blog explores how these initiatives have reshaped India’s medical devices landscape, driving domestic production, innovation, investment, and global competitiveness.
What is ‘Make in India’ & ‘Atmanirbhar Bharat’?
Make in India is a flagship initiative launched in 2014 aimed at encouraging companies to manufacture products in India and strengthen the domestic manufacturing base.
Atmanirbhar Bharat (Self-reliant India) is a broader vision, articulated in 2020, focused on reducing import dependence across strategic sectors, including healthcare and medical technologies. These initiatives prioritize policy reforms, incentives, and streamlined regulation to boost local manufacturing.
Together, these initiatives provide the framework for government schemes that directly influence the medical devices industry’s growth.
Key Government Schemes Transforming the Medical Devices Sector
1. Production Linked Incentive (PLI) Scheme for Medical Devices
One of the most impactful initiatives under ‘Make in India’ and ‘Atmanirbhar Bharat’ is the PLI Scheme for Medical Devices, which:
- Has an outlay of around ₹3,420 crore.
- Offers 5% incentives on incremental sales of domestically manufactured medical devices for select high-value categories like radiology, imaging, implants, and critical care equipment.
- Has led to 19 greenfield manufacturing projects producing devices such as MRI machines, CT scanners, ultrasound systems, C-arms, and more — previously imported products now being made in India.
- Reached cumulative sales of over ₹8,000 crore — including exports of nearly ₹3,844 crore — validating the scheme’s success in boosting both domestic supply and exports.
Impact: This has significantly reduced import dependence and strengthened India’s production capabilities in high-end medical equipment.
2. Medical Device Parks and Infrastructure Support
Government support through the Scheme for Promotion of Medical Device Parks includes:
- Funding for common infrastructure facilities (CIF) to lower production costs and support multiple companies in one ecosystem.
- Assistance of up to 70–90% of project cost for medical device parks across several states.
Impact: Large parks improve the ease of doing business, foster clustering of skilled suppliers, and attract investment. For example, the Ujjain Medical Device Park has already begun fresh production, expected to create 10,000+ jobs within the industry — a symbol of growing regional manufacturing power.
3. National Medical Devices Policy & Regulatory Reforms
The National Medical Devices Policy (2023) aims to:
- Provide a holistic roadmap for industry growth.
- Introduce streamlined single-window clearances and updated regulatory frameworks.
- Encourage skill building, innovation, and international competitiveness at scale.
Impact: By simplifying regulatory processes and aligning standards with global best practices, the policy underpins the ecosystem needed to sustain long-term manufacturing growth.
4. Supporting Schemes & Sector-wide Incentives
Other supportive measures include:
- Targeted schemes (Rs 500 crore) to support R&D, clinical studies, skill development, and testing infrastructure.
- 100% FDI via automatic route in the medical devices sector, boosting foreign investment confidence.
- Tax exemptions and extended deductions to incentivize new manufacturers.
These efforts together foster innovation, adoption of new technologies, and market expansion.
Real-World Outcomes & Industry Growth
Domestic Manufacturing Share Increases
The share of medical devices manufactured domestically has risen significantly — from under 10% to around 30% of domestic requirements in the last five years. Even for high-end devices, local production now meets roughly 20% of demand — a substantial leap toward self-reliance.
Enhanced Export Competitiveness
Exports of domestically manufactured medical devices have grown sharply, especially under PLI support, helping India compete on global platforms.
New Investments & Jobs
States such as Haryana are drawing investment plans worth ₹5,000 crore for pharmaceuticals and medical devices with supportive incentives and R&D backing.
Innovation Ecosystems Taking Shape
Initiatives like the AMTZ Innovation Passport streamline access for MedTech startups to R&D, fabrication, and regulatory support hubs — fast-tracking innovation from concept to market.
Challenges & Areas for Improvement
Despite significant progress, challenges persist:
- Complex tax structures such as inverted GST on raw materials versus finished products can dampen competitiveness (industry lobbying for reductions).
- Imports of pre-owned devices under conflicting policies may undermine domestic investments.
Addressing these will be critical to sustaining long-term growth.
The combined impact of Make in India, Atmanirbhar Bharat, and targeted Government schemes has effectively catalysed India’s medical devices sector — transforming it from heavy import reliance to a fast-growing domestic manufacturing and innovation hub. Through incentives, infrastructure, regulatory reform, and strategic industry focus, India is confidently marching toward self-reliance, global export leadership, and healthcare innovation — a powerful narrative not just for industry stakeholders but for the health and economic wellbeing of the nation as a whole.