The Indian government is set to roll out a new initiative aimed at enhancing domestic production capabilities for crucial medical imaging components, including those used in digital X-ray, CT scan, and MRI machines. This move, announced by Secretary of Pharmaceuticals Mr. Arunish Chawla at the MedTech Stackathon 2024 in New Delhi, is part of a broader strategy to reduce reliance on imported components and lower the costs of medical imaging devices.

Overview of the New Scheme

Under the new scheme, the government will offer a 20% capital subsidy on marginal investments made by companies engaged in manufacturing essential components for digital X-ray, CT scan, and MRI machines. This incentive is designed to stimulate domestic production and reduce the current dependency on imported components, which has been a significant factor in the high costs of medical imaging devices.

The Union Budget 2024-25 has also introduced reduced customs duties for key components such as X-ray tubes and flat panel detectors, which are critical for the operation of digital X-ray machines. These measures aim to lower the overall cost of manufacturing and improve the affordability of medical imaging technologies in India.

Background and Industry Feedback

The introduction of the Phased Manufacturing Programme (PMP) in January 2021 was an initial step towards supporting domestic manufacturing in the medical devices sector. However, feedback from the industry has indicated that the domestic capacity for producing these components is still in the developmental stage. In response, the Department of Pharmaceuticals has worked to revise rates and support the growth of local manufacturing capabilities.

MedTech Stackathon 2024

The MedTech Stackathon 2024, organized by the Department of Pharmaceuticals in collaboration with industry stakeholders, has been a platform to address critical challenges in the medical devices sector. These include the heavy reliance on imports, regulatory hurdles, and technological gaps that hinder the growth of domestic manufacturing.

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Cost Implications and Industry Insights

Dr. Harsh Mahajan, Chairman and Founder of Mahajan Imaging, highlighted the cost disparity between imported and domestically manufactured digital X-ray machines. Imported machines can range from US$ 21,466.65 (Rs. 18 lakh) to over US$ 119,260.58 (Rs. 1 crore), while domestic manufacturing could significantly reduce these costs. This reduction in price would enhance the affordability and availability of medical imaging devices, particularly in primary health centres and rural areas.

Despite India's global leadership in generic medicines and low-cost vaccines, the medical devices sector remains heavily reliant on imports, with nearly 70% of products sourced from abroad. The new scheme represents a crucial step towards addressing this reliance, promoting self-sufficiency, and making medical imaging technology more accessible to the Indian population.

Future Outlook

The government's initiative to promote domestic manufacturing through subsidies and reduced customs duties is expected to bring significant changes to the medical devices sector. By encouraging local production, India aims to enhance its capacity to produce essential medical components, reduce import dependency, and ultimately make high-quality medical imaging devices more affordable and accessible. This development is expected to drive progress in the medical technology field and improve healthcare infrastructure across the country.

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