Budget may unveil scheme to incentivize medical gear makers

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medical equipment market was worth $11 billion in 2022, making up 1.5% of the global market. The department estimates that the sector may grow to $50 billion by 2030 with a compounded annual growth rate (CAGR) of 16.4%. “The department of pharmaceuticals has submitted a new proposal on the meditech sector to the finance ministry for final consideration," the second person added, adding the final contours of the proposal are still being worked on.

The new scheme may take the shape of the Revamped Pharmaceuticals Technology Upgradation Assistance Scheme (RPTUAS), the people cited above said. Launched in March this year, RPTUAS aims to support the pharma industry to upgrade technologies to global standards. The scheme provides financial incentives for pharma firms with annual sales below ₹500 crore on average over the previous three years.

Under the scheme, companies with average sales of ₹1 crore to less than ₹50 crore will be paid 20% of investments made in technology upgradation, those with ₹50 crore to less than ₹250 crore will be eligible for 15%, and those with ₹250 crore to less than ₹500 crore will get 10%. The new scheme in the works will help manufacturers to go up the value-added quality certification tree and secure global regulatory approvals faster, as well as earn greater quality credibility with Indian regulators, said Rajiv Nath, forum coordinator of the Association of Indian Medical Devices Industry (Aimed). "This strategic move is in line with the National Medical Devices Policy announced last year to make India the global manufacturing hub for medical devices.