Government Approves to Establish 4 Medical Device Parks to Offer Affordable Treatment
- BY Jaspreet Kaur
Feature Writer, BusinessEx
- Nov 12,2019
- 8 Mins Read
Under the Make in India initiative, the Indian government has reportedly agreed to establish four medical devices parks to offer world-class treatment at affordable rates. The medical parks will set up in four Indian states--Andhra Pradesh, Tamil Nadu, Kerala and Telangana, The Hindu reported.
According to the anonymous sources, these medical parks will render necessary infrastructure, where companies can easily plug and play.
Sources said the parks will provide the necessary infrastructure to the companies where they can easily come and install their setup.
“The support to medical equipment manufacturing companies will help easy access to standard testing facilities and reduce the cost of production,” Sources said in an interview with The Hindu.
In this move, the government proposes to offer INR 25 crore or 70 per cent of the project expenses for establishing CFCs for introducing common facilities in the medical parks.
Lately, the project of Andhra Pradesh Medtech Zone for the creation of the Common Facility Centre (CFC) for Superconducting Magnetic Coil Testing and Research has approved.
The medical devices' retail market in India is nearly INR 70,000 crore. The domestic medical devices industry is very small, even though the country is the fourth largest market in Asia, according to estimates.
According to the national investment promotion and facilitation agency, Invest India, the current market size of the Indian medical devices segment is calibrated $5.2 billion.
The government agency also alludes that the country is massively an importer of medical devices, with the domestic industry considering nearly 2 per cent of the global segment which pegs at $250 billion.
Furthermore, Inc42 reported the department of pharmaceuticals estimates the retail market for medical devices between $9.3 billion to $10.8 billion.
Other Investments in the Medical Device Industry
Several investments have been lately made in the nation, leading to a surge in the growth of the Indian medical device industry.
Noida-based mobile manufacturing firm, Lava International has received a three-year contract from the US-based firm, General Electric for producing handheld devices, created mainly for medical use, reported Inc42.
In October this year, Mumbai-headquartered firm, Medikabazaar had raised $5 million in Series A funding round from Delhi-based Venture Capital fund, HealthQuad, which focuses on healthcare firms.
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