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Medical devices need more local value addition, says Pharma Secy
Department of Pharmaceuticals Secretary Manoj Joshi said on Friday that the medical devices sector must focus on increasing local value addition and manufacturing components, rather than just assembling imported parts. Speaking at…
Department of Pharmaceuticals Secretary Manoj Joshi said on Friday that the medical devices sector must focus on increasing local value addition and manufacturing components, rather than just assembling imported parts. Speaking at the CII Global MedTech Summit, Joshi noted that while imports have shifted to assembly in India over the last five to seven years, many factories remain "plain assembly line operations." He emphasised that the government wants domestic value addition to reach 40-45 per cent, up from current low levels, and plans to offer greater incentives for component makers compared to assembly operations.
Joshi also addressed challenges with the Production Linked Incentive (PLI) scheme for medical devices, which has an outlay of Rs 3,420 crore for FY23 to FY27. He acknowledged that while many companies invested, only a few are receiving incentives. The government is considering extending the scheme's timeframe or enabling companies that met investment or sales benchmarks but missed incentives for other reasons to claim them. Joshi said the government is open to industry suggestions on this issue. Additionally, he stressed the need for more product testing of prototypes and commercial devices, stating it is "not really happening much in our system."
Indian Opinion Analysis
India imports nearly 80 per cent of its medical devices, with high-end equipment like MRI machines and ventilators almost entirely sourced from abroad. The PLI scheme was designed to reverse this, but its narrow target segments and strict incremental sales criteria have left many early investors unable to claim benefits. The Rs 3,420 crore outlay is modest compared to the Rs 1.97 lakh crore PLI for pharmaceuticals, reflecting the sector's smaller manufacturing base. Extending the scheme or relaxing eligibility could benefit companies that set up facilities during the pandemic but saw slower revenue growth. The real challenge, however, is building a components ecosystem for items like sensors and imaging tubes, where India has no production base. A formal announcement on changes to the PLI is expected in the coming months.
Watch for the government's decision on extending the PLI medical devices scheme beyond FY27, and any revision to the 5 per cent incentive rate.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
