Budget 2024 may unveil scheme for Indian-made medical devices: Report

India's medical equipment market was valued at $11 billion in 2022, accounting for 1.5% of the global market.

The Union Budget is likely to unveil a scheme to boost domestic manufacturing of medical devices, similar to the one that was framed for drugmakers, according to two sources cited by Mint.

Moneycontrol could not verify this information independently.

This initiative aims to achieve self-reliance in medical gear and reduce healthcare expenses. While the financial support details are still undecided, the government has been actively discussing its inclusion in the Budget for 2024-25.

Union Health and Chemical and Fertilisers Minister JP Nadda had last month emphasised upgrading the domestic manufacturing standards for drugs and medical devices within three years. The Department of Pharmaceuticals is exploring new segments of the pharmaceutical industry, particularly the meditech sector, which is billed as a growth driver for tomorrow's India.

The country's medical equipment market was valued at $11 billion in 2022, accounting for 1.5 percent of the global market. The Department of Pharmaceuticals estimates that the sector could grow to $50 billion by 2030 at a CAGR of 16.4 percent. Most domestically manufactured devices include disposables like catheters and implants such as cardiac stents.

The new scheme may resemble the Revamped Pharmaceuticals Technology Upgradation Assistance Scheme (RPTUAS), which supports technology upgrades in the pharma industry. This move aligns with the National Medical Devices Policy, aiming to establish India as a global manufacturing hub.

Rajiv Nath of the Association of Indian Medical Devices Industry noted that this strategic initiative would help manufacturers secure global regulatory approvals and enhance quality credibility with Indian regulators.

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