Make in India plan in works to attract medical device companies

The government is sewing up an arrangement to lure the medical devices industry to Make in India, along the lines of telecom and electronics, trying to cut dependence on imports and lower costs.

Niti Aayog, the government’s research organization, has begun work on the plan, which comes as the US competes with India over value controls forced on medicinal devices to make them moderate. "The Aayog will soon come out with a guide to promote improvement of medical devices under the Make in India initiative.

The mega plan is to in the long run make India a manufacturing hub for medical devices of worldwide standards that considers the domestic and overseas markets

The products would be diagnostic devices to screen for cancer and heart diseases and later pacemakers, ventilators, dialysis machines and CT scanners, among others, would be included.

The plan being considered for medical devices is like the incentive package that gives capital subsidy of up to 25 per cent for the electronic business and has helped boost local production of mobiles in the country.

India's medical device market is the fourth largest in Asia — after Japan, China and South Korea — at over US$10 billion and is anticipated to develop to US$50 billion by 2025.

Right now, India has 750-800 medicinal device producers, with a normal investment of Rs 170-200 million and a normal turnover of Rs 450-500 million.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.