Scheme to promote medical device parks notified

Scheme to promote medical device parks notified

Part of: Prelims and GS II – Policies and interventions  

Context The Union government recently notified a scheme to promote medical device parks at a financial outlay of Rs. 400 crore till financial year 2024-2025.

Key takeaways 

• The scheme aims to ensure easy access to testing and infrastructure facilities. 
• It is expected that this will bring down the cost of production of medical devices, thereby making them more affordable for domestic consumption. 
• The financial assistance for a selected medical device park would be 90% of the project cost of common infrastructure facilities for the northeastern and hilly States. For the rest, it would be 70%. 
• However, a maximum assistance under the scheme for one such park will be Rs. 100 crore.

About Medical device 

• The medical device industry is a unique blend of engineering and medicine. It involves the creation of machines that are used to support life within the human body.
• Medical devices include Surgical Equipment, Diagnostic equipment like Cardiac imaging, CT scans, X-ray, Molecular Imaging, MRI and Ultrasound-imaging including hand – held devices; Life Support equipment like ventilator, etc. as well as Implants and Disposables. 

Do you know? 

• As per industry estimates, the Indian medical devices market will grow to USD 50 billion by 2025
• 100% FDI is permitted in Medical devices through the automatic route
• Medical Device Parks are planned across India, including Andhra Pradesh MedTech Zone Limited (AMTZ), a park in Sultanpur village (Telangana) and HLL Lifecare Mediparks in Tamil Nadu, Maharashtra and Gujarat.