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Upcoming Medical Device Park in India

calendar04 Mar, 2023
timeReading Time: 5 Minutes
Upcoming Medical Device Park in India

With a motive to make a new India, the Government has taken initiative to set up various Medical Device Parks in India. Over the recent years the Government has recognized the market for the Medical industry in India is expanding rapidly. Medical Device Parks are specially constructed to promote and encourage the medical facilities, infrastructure, medical concoction and invention, development that are taking place in the healthcare industry. In this article we shall understand about the concepts and discuss about: Medical Device Parks and its features, Advantages of setting of Medical device parks and budget relating the schemes of Medical Park. 

The government has recognized the potential growth of the medical device industry in India. With the initiative ofMake in India” and “Atma Nirbhar Bharat mission, the Central Government gave birth to the conception of Medical Device Parks in India. India’s largest Medical Device Park is located in the state of Telangana, Hyderabad, which spreads across 250-acre area of land and is the largest of its kind in India. The ecosystem of the designated park in India contributes in the development and manufacturing of home grown medical devices and medical technology.

Purpose and Features of Medical Device Parks

The Government of India has taken various steps to spur production for domestic Pharmaceutical drugs and medical devices, made in India, to lessen our dependence on imported products. The Central Government has launched various schemes and programs to encourage more Pharma and medical device industries, some of which mentioned below:

  1. The Production Linked Incentive (PLI) scheme[1] for the development of vital Key Starting Materials (KSM) or Drugs Intermediate (DIs) and Active Pharmaceutical Ingredients (APIs) in India outlined with the budget of Rs 6,940 crores for the FY 2020-2021 to 2029-2030. The scheme mainly helps to provide financial assistance to 41 identified medical products. Till now the department has received 51 applications under this scheme.
  2. The Production Linked Incentive Scheme is meant for Pharmaceuticals drugs, with a total budget of Rs 15,000 crores for the financial year 2020-2021 till FY 2028-2029. Under this scheme 55 approved applicants will get financial benefit to manufacture identified products under certain categories for a period of six (6) years including five (5) industry experts who will be selected for the production of In-vitro Diagnostic (IVD) medical devices.
  3. The Scheme for Promotion of Bulk Drug Parks, sanctioned for a budget of Rs 3,000 crores for the FY 2020-2021 till FY 2024-2025. This scheme will provide economical help to three states for developing Bulk drug parks. The Department has received several applications which are still under examination.
  4. The Scheme of Strengthening of Pharmaceutical Industry (SPI) was initiated for an economical budget of Rs 500 crores for the financial year 2021-2022 till Financial Year 2025-2026. This scheme was made to extend help for the infrastructure development and Technology upgradation for the Pharma MSMEs.
  5. The Government has also introduced Schemes for the Promotion of Medical Device Parks in India with a total budget of Rs 400 crores to be provided to four states with Rs 100 crore each for its development.
  6. Furthermore, Government have also made some sub-scheme i.e., “Assistant to Medical Industry for Common Facility Centre”, in order to provide a common facility for Superconducting Magnetic Coil Testing and Research facility to Andhra Pradesh Medtech Zone Ltd. in the state of Andhra Pradesh.

Therefore, we can say that the Central Government has taken several initiatives to reduce the dependency on the imported medical products and start the use of domestic products that are indigenously made in India. With this move, the Department of Pharmaceuticals, governed by the Ministry of Chemicals and Fertilizers have taken initiative to launch for the Development of Medical Device Park and these parks aims at:

  1. The development of global common infrastructure with world-class facilities under one pavilion will give access to Standard Testing procedure and infrastructure facilities through these medical parks.
  2. The main aim behind the idea of the Government of setting up a Medical device Park in India is to make India a global player in the international market with world class medical infrastructure facility and showcase the upgradation in Medical Technology. 
  3. To support the ‘Make in India’ initiative, introduced by the government, it also creates a powerful medium to promote and uplift the medical device industry in India.

Budget Relating To the Construction of Medical Device Park in India

The Ministry of Chemicals and Fertilizers have launched the scheme of Medical Device Park in India. With the total financial budget of Rs 400 crores, the Department has enforced the scheme of “Promotion of Medical Device Park in India”, and the maximum support can be extended up to Rs 100 crore for the construction of one Medical Device Park. The time period for this scheme will range from FY 2020-2021 to FY 2024-2025 and this Medical Park project will be executed by the State Implementing Agency (SIA) under the governance of the Central Government. Upon the decision taken by the government, the common infrastructure facility that would be provided for each Medical Device Park would be 70% of the project cost. However, in the case of Hilly regions and North Eastern States the amount of money would be extended up to 90% of the project cost. The maximum limit provided by the Government for each Device Park would be limited to Rs 100 crores.

There are four states in India namely, Uttar Pradesh, Tamil Nadu, Madhya Pradesh and Himachal Pradesh that have been selected, after the fulfillment of the eligibility criteria mentioned in the scheme guidelines to build the Medical Parks. These parks have received approval with the monetary assistance of Rs 100 crore each for its construction. Out of the 16 States/Union territories that have sent proposals to the Department of Pharmaceuticals, these four States have received approval from the Government. No more bids are being accepted under the scheme for the establishment of a Medical Device Park in the country.

Advantages of Setting up Of Medical Device Park in India

  1. It will reduce the cost of production of medical devices and pharmaceutical drugs and improve their availability and affordability in the domestic market.
  2. To acquire the benefits that surface from the optimum utilization of resources and growth in the scale of medical device business. 
  3. The set-up of Medical Device Park will encourage innovation and creation.


There has been a notable growth in the future of the medical device industry in recent years. Thus, it is noteworthy to say that development of Common Infrastructure Facility (CIF) in the Medical Device industry is the need of the hour which will facilitate Foreign Direct Investment (FDI) and private investment and help India to grow in the Global market in the field of Healthcare sector. The government has set up a committee and have ensured that there is speedy disbursal of the budgetary funds that is decided depending on the region in setting up of four Medical Device Park. The committee gave responsibility to Department of Pharmaceuticals to look after the entire process towards the efficacious working of the development of the medical parks in India.

Also Read:
What Is The Importance Of A Medical Device Certificate In India?
How To Apply For Medical Device Registration In Australia?
A Step By Step Guide For Registration Process For Medical Devices In India

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