What’s in the news?
- The Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers has notified the Scheme for “Promotion of Medical Device Parks” to support the medical devices industry to reach its potential in the coming years.
About the Scheme
- Medical Device is a growing sector and its potential for growth is the highest among all sectors in the healthcare market. It is valued at Rs. 50,026 crore for 2018-19 and is expected to reach to Rs. 86,840 crore by 2021-22. India depends on imports up to an extent of 85% of total domestic demand of medical devices.
- The Scheme aims to promote Medical Device Parks in the country in partnership with the States.
- Recognizing the need for higher levels of investments for the creation of proper infrastructure in the sector, the scheme has been launched with the following objectives:
- Easy access to standard testing and infrastructure facilities through creation of world class common infrastructure facilities for increased competitiveness which will result in significant reduction of the cost of production of medical devices leading to better availability and affordability of medical devices in the domestic market.
- Reaping the benefits arising due to optimization of resources and economies of scale.
- The Medical Devices Parks to be developed under the scheme will provide common infrastructure facilities at one place thereby creating a robust ecosystem for the medical device manufacturing in the country and also reducing the manufacturing cost significantly.
- The total financial outlay of the scheme is Rs. 400 crore and the tenure of the scheme is from FY 2020-2021 to FY 2024-2025.
- The scheme reflects the spirit of co-operative federalism where the Central Government and State Governments will partner to develop the Medial Device parks for better performance of the sector.
- The financial assistance to a selected Medical Device Park would be 70% of the project cost of common infrastructure facilities.
- In case of North Eastern States and Hilly States, financial assistance would be 90% of the project cost.
- Maximum assistance under the scheme for one Medical Device Park would be limited to Rs. 100 crores.