Unravelling Government Subsidi...

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Unravelling Government Subsidies for Medical Device  Manufacturers

Unravelling Government Subsidies for Medical Device Manufacturers

India is the 4th largest market for medical devices in Asia, with the current market size of the industry estimated at $11 bn.

The sector is witnessing a transformation characterized by innovation, advanced technologies, and a commitment to improving healthcare outcomes. Recognized as a Sunrise Sector of India under the Make in India Campaign, it is the fastest-growing industry whose market size is expected to reach $ 50 billion by 2030.

Medical devices consist of five major segments - Consumables and disposables, including needles and syringes; Diagnostic Imaging; Dental Products; Orthopaedics, and prosthetics; Patient Aids, including hearing aids and pacemakers.

The export of medical devices sector has been growing at a CAGR of 9.37% over the last five years.

Let’s dive deeper into various financial incentives offered by the Government to uplift this sector’s growth.

Elevating Excellence

The Government has launched Production Linked Incentive Schemes for medical devices with financial incentives worth $400 million to boost domestic production.

eSanjeevani, a technological intervention conceptualized by Ministry of Health and Family Welfare, has enabled remote doctor consultations and connected thousands living in remote parts of the country.

Currently, India consists of more than 250 active MedTech Startups that have raised over $2 billion from 2011 to 2022. Indian Government has also released the First National Medical Devices Policy, National Policy on R&D and Innovation in the Pharma-MedTech Sector in India, and the Scheme for Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) to boost research and innovation.

States have committed to set up dedicated industrial parks at lower costs; 4 medical device Parks are going to be developed in Himachal Pradesh, Tamil Nadu, Madhya Pradesh, and Uttar Pradesh to provide easy access to standard testing and infrastructure facilities for medical devices manufacturing.

Rajasthan Government is offering a 5% Interest Subsidy on a term loan for five years subject to a maximum of INR 5 million per year for manufacturing of medical devices.

Haryana government is offering a 6% interest subsidy for Micro and Small Enterprises on term loans or a maximum of up to Rs.20.00 lakh per year for five years.

The Punjab government is supporting the development of State-of-the-art Medical device parks with common infrastructure facilities at Rajpura and Mohali.

Empowering Progress

It becomes evident that by embracing government subsidies, companies not only thrive financially but also lead the nation toward a brighter future.

The Government of India is taking several steps to ensure the growth of a vibrant ecosystem of medical device manufacturing in India.

Wearables such as glucose monitors, exercise trackers, and wearables for mental health are becoming popular among consumers in India because of their ease of usage, thus making this segment an attractive destination for investment.

With the right knowledge, strategic planning, and dedication to excellence, medical device manufacturers can navigate the subsidy landscape effectively, paving the way for a future where innovative healthcare solutions are accessible to all.

About SubsidyPro

SubsidyPro is the most knowledgeable and trusted partner in navigating the complex world of government subsidies in India. It guides and assists entrepreneurs through the maze of subsidy programs offered by various governments. Subsidy Pro specializes in identifying eligible subsidies, preparing requisite documentation and ensuring compliance. The company helps unlock the potential of subsidies by providing customized solutions as per client’s needs and objectives to make their financial planning more viable.