Context: Recently, the Ministry of Chemicals and Fertilizers has launched the Scheme for "Promotion of Medical Device Parks" to support the medical devices industry in line with Atmanirbhar Bharat.
Medical Devices Sector in India

• The Medical Devices industry in India is valued at USD 5.2 billion, contributing about 4-5% to the USD 96.7 billion Indian healthcare Industry.
• Medical devices sector in India is very small in size as compared to the rest of the manufacturing industry, though India is one of the top twenty markets for medical devices in the world and is the 4th largest market in Asia after Japan, China, and South Korea.
• India currently imports 80-90% of medical devices of the USD15 billion market.
• The US, Germany, China, Japan, and Singapore constitute the five largest exporters of high technology medical equipment to India.

Objectives of the scheme

• Easy access to standard testing and infrastructure facilities.
• Creation of world class common infrastructure facilities for increased competitiveness.
• Reduction in the cost of production of medical devices leading to better availability and affordability in the domestic market.
• Reaping the benefits arising due to optimization of resources and economies of scale.

Key Highlights

• Initiative of: Ministry of Chemicals and Fertilizers

16 States and Union Territories were received under the scheme. The selection of the states and union territories (UTs) is based on the challenge method based on the parameters such as:

• Utility charges, State policy incentives, total area of the park, land lease rate, connectivity of the park, ease of doing business ranking, availability of technical manpower etc.

The Government of Himachal Pradesh, Tamil Nadu, Madhya Pradesh, and Uttar Pradesh have given "in-principle" approval under the scheme.

• The total financial outlay of the scheme is Rs 400 crores and the tenure is from FY 2020-2021 to FY 2024-2025.
• The financial assistance to a selected Medical Device Park would be 70% of the project cost having infrastructure facilities.
• In the North-Eastern and the Hilly States, the assistance would be 90% of the project cost.
• Maximum assistance for one Medical Device Park would be limited to Rs 100 crores.
• The Parks will provide common infrastructure facilities at one place, creating a robust ecosystem for the medical device manufacturing and reducing the cost significantly.