Budget 2024 Expected to Introduce Scheme for Indian-Made Medical Devices

The Union Budget is expected to introduce a scheme to enhance domestic manufacturing of medical devices, similar to the initiative created for pharmaceutical companies, according to two sources.

Business2Business has not independently verified this information.

This initiative seeks to promote self-reliance in medical equipment and lower healthcare costs. Although the specifics of the financial support are still being determined, the government is actively considering including it in the Budget for 2024-25.

Union Health and Chemicals Minister JP Nadda emphasized last month the need to upgrade domestic manufacturing standards for drugs and medical devices within the next three years. The Department of Pharmaceuticals is also exploring new areas within the pharmaceutical industry, particularly the meditech sector, which is seen as a key growth driver for the future of India.

The medical equipment market in the country was valued at $11 billion in 2022, representing 1.5% of the global market. The Department of Pharmaceuticals projects that this sector could expand to 50 billion USD  by 2030, with a compound annual growth rate (CAGR) of 16.4%. Most domestically produced devices consist of disposables like catheters and implants, including cardiac stents.

The new scheme is likely to be similar to the Revamped Pharmaceuticals Technology Upgradation Assistance Scheme (RPTUAS), which provides support for technology upgrades in the pharmaceutical industry. This initiative aligns with the National Medical Devices Policy, with the goal of positioning India as a global manufacturing hub.

Rajiv Nath from the Association of Indian Medical Devices Industry stated that this strategic initiative will help manufacturers obtain global regulatory approvals and improve their credibility with Indian regulators.

In the Interim Budget in February, the government allocated Rs 98,461 crore to the pharmaceuticals and healthcare sector.