The Centre has announced two marginal investment sub-schemes aimed at reducing India’s heavy reliance on imported medical devices and supporting clinical studies in the medtech sector. India currently imports about 70% of its medical device needs, prompting the Department of Pharmaceuticals to introduce a Rs 500 crore support package in November 2024 to enhance local manufacturing and innovation in the industry.
Eligible applicants have been invited to submit their proposals by January 10, 2026, under these schemes. The first sub-scheme allocates Rs 180 crore to assist 30 applicants through marginal investment aid, with a focus on promoting the domestic production of essential components and raw materials for medical devices to decrease dependency on imports.
Indian manufacturers currently heavily rely on imported raw materials and components, leading to vulnerable supply chains and increased costs. To address this issue, the scheme offers a one-time capital subsidy ranging from 10 to 20% of the project cost, capped at Rs 10 crore, provided on a reimbursement basis. Projects related to the production of key components, raw materials, accessories, and finished medical and in-vitro devices falling under the Global Tender Enquiry list are covered by this scheme.
The second sub-scheme, known as the Medical Device Clinical Studies Support Scheme, with a total outlay of Rs 110 crore, is dedicated to aiding both established companies and start-ups in generating clinical evidence for their products. Manufacturers can receive financial support of up to Rs 2.5 crore for animal studies and up to Rs 5 crore for clinical investigations and post-market clinical follow-up studies on approved devices. Additionally, support of up to Rs 1 crore is available for clinical performance evaluation of new in-vitro diagnostic products.
