GS Paper - 3 (Economy)

The Department of Pharmaceuticals has notified the Scheme for “Promotion of Medical Device Parks”. The Scheme would make India ‘Aatmanirbhar’, and support the medical devices industry to reach its potential in the coming years identifying the industry as a sunrise sector with great potential for diversification and employment generation.

About the Park

  1. The Medical Devices Parks to be developed under the scheme will provide common infrastructure facilities at one place thereby creating a robust ecosystem for the medical device manufacturing in the country and also reducing the manufacturing cost significantly.
  2. The financial assistance to a selected Medical Device Park would be 70% of the project cost of common infrastructure facilities.
  3. In case of North Eastern States and Hilly States, financial assistance would be 90% of the project cost. Maximum assistance under the scheme for one Medical Device Park would be limited to Rs. 100 crores.
  4. Based on the evaluation, the proposals of the State Government of Himachal Pradesh, Tamil Nadu, Madhya Pradesh and Uttar Pradesh have been given “in-principle” approval under the scheme.
  5. The scheme reflects the spirit of co-operative federalism where the Central Government and State Governments will partner to develop the Medial Device parks for better performance of the sector.   

Objectives of the Scheme

  1. Easy access to standard testing and infrastructure facilities through creation of world class common infrastructure facilities for increased competitiveness will result into significant reduction of the cost of production of medical devices leading to better availability and affordability of medical devices in the domestic market.
  2. Reaping the benefits arising due to optimization of resources and economies of scale