Reducing dependence on imports for medical devices

Though the country has, over the years, adorned the epithet of 'the pharmacy of the world' as it has been exporting life-saving medicines to the entire world, including developed nations like the US, UK and European Union nations, India has been critically dependent on imports of medical devices as at present, nearly 80% of the medical devices sold in India are imported, particularly the high-end medical devices

To make the country self-reliant in the pharmaceutical sector, the central government has been taking a series of schemes including several financial incentive schemes like the production linked incentive scheme for promotion of domestic manufacturing of critical key starting materials, drug intermediates and active pharmaceutical ingredients in India. Though the country has, over the years, adorned the epithet of 'the pharmacy of the world' as it has been exporting life-saving medicines to the entire world, including developed nations like the US, UK and European Union nations, India has been critically dependent on imports of medical devices as at present, nearly 80 per cent of the medical devices sold in the country are imported, particularly the high-end medical devices. The Indian medical devices companies have so far typically focused on low-cost and low-tech products, like consumables and disposables, leading to a higher value share going to foreign companies. Now, the central government is focused on reducing India's import dependence of medical devices from 80 per cent at present to nearly 30 per cent in the next 10 years, and become one of the top five global manufacturing hubs for medical devices by 2047.

Under this backdrop, the Scheme for Promotion of Medical Devices Parks, being implemented by the Department of Pharmaceuticals under the Union Ministry of Chemicals and Fertilizers, is a step in right direction. Under the scheme, four medical devices parks have been approved in different States for promotion of medical devices. The four Medical Devices Parks are now being set up in Himachal Pradesh, Madhya Pradesh, Tamil Nadu and Uttar Pradesh which will result in development of a total of around 1,326 acres of area attracting a proposed investment of around Rs 1,221 crore. Out of this, the Ministry of Chemicals and Fertilizers will provide a maximum grant-in-aid or Rs 400 crore (Rs 100 crore each) for the four projects while the rest will be borne by the State governments. The Scheme for Promotion of Medical Devices Parks was approved by the Union Cabinet on March 20, 2020. The operational guidelines of the scheme were issued on July 27, 2020 and the last date for receiving the proposals from the States/UTs was October 15, 2020. Under the Scheme, a one-time grant-in-aid of maximum Rs. I00 crore will be provided for creation of common infrastructure facilities (CIF) in selected medical device park proposed by a State Government.

The Medical Devices Park in Madhya Pradesh will be coming up in Pitampur region, in an area of 360.06 acres with a total project cost of Rs 222.77 crore. The CIF cost to be covered under the scheme is around Rs 155.63 crore, while the physical infrastructure cost to be borne by the State government is Rs 34.47 crore. The total amount to be borne by the State, as contribution towards the CIF and physical infrastructure, is Rs 122.77 crore. In Tamil Nadu, the proposed park is expected to come up in an area of 350 acre in Oragadam Industrial Corridor in Kancheepuram district near Chennai, with a total project cost of Rs 212.40 crore. The CIF cost would be Rs 153.33 crore and the physical infrastructure cost to be borne by the State government is Rs 59.07 crore. The total amount to be borne by the State government for the project would be around Rs 112.40 crore. The Himachal Pradesh government would be spending around Rs 249.83 crore out of the total project cost of Rs 349.83 crore for the proposed medical devices park which is coming up in an area of 265.75 acres in Baddi Barotiwala Nayagarh area in Solan district. The CIF cost to be covered under the scheme would be Rs 157.64 crore, and the physical infrastructure cost is Rs 192.19 crore. In Uttar Pradesh, the 350 acre park will be coming up in Sector 28 of YEIDA Phase I, Gautam Buddh Nagar district, with a total project cost of Rs 435.94 crore. The CIF cost to be covered under the scheme would be Rs 214.17 crore, while the physical infrastructure cost is fixed at Rs 221.77 crore. The State government has to bear an amount of Rs 335.94 crore as contribution for CIF and physical infrastructure.

Definitely, these Medical Device Parks will provide the much needed common testing and laboratory facilities and centres at one place, thereby reducing the manufacturing cost significantly and will help in creating a robust ecosystem for medical device manufacturing in the country. After taking several initiatives in the pharmaceutical sector, the central government's initiatives like the Scheme for Promotion of Medical Devices Parks will go a long way in making India self-reliant, up to a considerable extent, in production of medical devices, especially the high-end medical devices.

(The author is freelance

journalist with varied experience

in different fields)