The Indian medical devices industry is expected to grow at 2.5x the global growth rate, which equates to a CAGR of 15%, as per figures on the Government’s Invest India website. Multiple reasons are contributing to the exponential growth, with a big push coming from the Government.
The Government has launched two PLI schemes and introduced the Medical Devices Parks scheme, which are all set to change the MedTech manufacturing outlook in India. In this blog, we explore how these schemes are affecting the industry as a whole.
PLI Scheme 1
The Production Linked Incentives Scheme (PLI) has been launched to promote domestic medical device manufacturing and foreign investment in the sector.
Sectors covered in the scheme include:
- Cancer care devices
- Radiology and imaging devices
- Anaesthetics devices
- And others
The scheme consists of incentives of around Rs. 3,420 crores. The scheme was introduced to help alleviate specific challenges in the medical manufacturing sector, like:
- Lack of adequate infrastructure
- High cost of finance available
- Problems in the availability of power
- Challenges in domestic supply chain and logistics
- Low focus on R&D and skill development in India
- Limited design capabilities
The tenure of the scheme is from FY 2020-21 to FY 2027-28.
PLI Scheme 2
With a total quantum of incentives of about Rs 15,000 crores, PLI 2.0 is an enhanced scheme that will take India’s manufacturing capabilities to the next level by improving the overall manufacturing ecosystem. It aims to also contribute to product diversification to high-value goods in the pharmaceutical sector.
This scheme will improve the global positioning of Indian companies in terms of manufacturing capabilities and other factors that influence it.
To help ensure the scheme reaches a wide area of the industry, the Government has created three groups, i.e., Group A, B, and C, based on the Global Manufacturing Revenue (GMR) contributed by the manufacturers who will benefit from the scheme.
The scheme’s tenure is from 2020-21 to the financial year 2028-29.
Medical Devices Parks scheme
With incentives of Rs.400 crores, the Medical Devices Parks scheme aims to develop world-class standard testing and infrastructure facilities to boost the manufacturing of medical devices in India.
This scheme will create manufacturing clusters (Medical Devices Parks) that will:
- Help reduce the cost of manufacturing
- Increase affordability and accessibility of medical devices
- Create a world-class manufacturing environment for global exports
- Decrease friction points linked to medical device manufacturing
4 medical parks in 4 Indian states will be set up, and the scheme’s tenure is FY 2020-2021 to FY 2024-2025.
How to leverage the growth of the MedTech sector with Karkhana.io
We are in one of the best times to leverage and benefit from the traction of the MedTech sector. However, the challenges because of which the Government is initiating several schemes still persist in the sector. Finding a reliable MedTech manufacturer is still a challenge for medical devices companies and startups.
Karkhana.io has made the process of manufacturing medical parts or devices seamless with the digital manufacturing platform. Having worked with a wide variety of medical technology companies, we have helped them manufacture their revolutionary medical devices. From the Infant Radiant Warmer for Bird Meditech, to ECG shells for Sunfox and a Surgical C-arm for Skanray, Karkhana.io is equipped to help you boost your medical device manufacturing.
The platform is built with the needs of medical companies in mind and takes care of every need, including easy and quick quotations, DfM feedback via our expert engineers, end-to-end project management, regular QC, audits of suppliers, logistics, and more, all within the platform.
Wish to leverage all these benefits for your company? Start by registering on our digital platform.