India Urges Medical Device Sector to Boost Local Manufacturing

In a call to action for the medical devices industry, India's Department of Pharmaceuticals Secretary Manoj Joshi emphasized the need for greater local value addition and component manufacturing. Speaking at the CII Global MedTech Summit, Joshi underscored the importance of enhancing domestic production capabilities.

Focus on Local Manufacturing

Joshi highlighted the shift from imports to local assembly in recent years but noted that many operations remain limited to assembly lines. He expressed the government's desire to see more domestic value addition, aiming to increase the percentage of locally produced components in medical devices. "We would like to incentivize more component manufacturing and domestic value addition," Joshi stated, advocating for a target of 40-45% local value addition.

To support this initiative, the government is considering adjustments to the production linked incentives (PLI) scheme. Joshi acknowledged challenges faced by companies unable to claim incentives despite meeting investment or sales benchmarks. He suggested extending the scheme's timeframe to accommodate these firms, encouraging further investment in local manufacturing.

Reevaluating the PLI Scheme

The PLI scheme, designed to promote domestic manufacturing of medical devices, offers financial incentives totaling Rs 3,420 crore, with a 5% incentive on incremental sales for selected companies. Joshi noted that while many companies have invested, only a few have successfully claimed these incentives. He called for industry feedback to refine the scheme, recognizing the need for ongoing adjustments to foster local production.

Joshi also pointed out the need for more rigorous testing of medical products, both prototypes and commercially available items. He indicated that current testing practices are insufficient and require enhancement to ensure product quality and reliability.

Encouraging Industry Collaboration

The government remains open to industry suggestions to address the challenges within the PLI scheme and to further encourage local manufacturing initiatives. Joshi invited industry stakeholders to provide input, emphasizing the collaborative effort required to advance India's medical devices sector.

This push for local manufacturing aligns with India's broader strategy to reduce dependency on imports and bolster the domestic industry, potentially leading to increased innovation and job creation within the sector.