India to offer 20% capital subsidy for domestic production of medtech components

The Indian government is set to launch a new scheme to encourage domestic components manufacturing for digital X-ray, CT scan, and MRI machines. Currently, most of these components are imported, resulting in high costs for medical imaging devices. Secretary of Pharmaceuticals, Mr. Arunish Chawla, announced at the MedTech Stackathon event in New Delhi that the government will offer a 20% capital subsidy on marginal investments for companies manufacturing essential components for these devices. The Union Budget 2024-25 also saw reduced customs duties for X-ray tubes and flat panel detectors, crucial for digital X-ray machines. Despite the Phased Manufacturing Programme (PMP) introduced in January 2021 to support domestic manufacturing, industry feedback indicated that the domestic capacity for these components is still developing. The Department of Pharmaceuticals has requested and received revised rates to support this development.

The Meditech Stackathon 2024, organized by the Department of Pharmaceuticals in collaboration with industry stakeholders, aims to address challenges such as import dependence, regulatory hurdles, and technological gaps in the medical devices sector. Chairman and Founder of Mahajan Imaging, Dr. Harsh Mahajan, highlighted that while imported digital X-ray machines cost between US$ 21,466.65 (Rs. 18 lakh) and over US$ 119260.58 (Rs. 1 crore), domestic manufacturing could significantly lower these costs. This would make medical imaging devices more affordable and increase their availability, especially in primary health centres. Despite India's status as a global leader in generic medicines and low-cost vaccines, the medical devices sector remains heavily reliant on imports, with nearly 70% of products sourced from abroad.

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