India's Medical Device Industry Gets a Boost with New Government Schemes

The Indian government has unveiled a scheme to bolster domestic medical device manufacturing. The initiative will provide significant financial incentives to reduce import reliance, drive innovation, and strengthen value chains, under the Marginal Investment Scheme and the Medical Device Clinical Studies Support Scheme.

The Indian medical device sector received a substantial push as the government called for applications under the Scheme for Strengthening of Medical Device Industry (SMDI). The Ministry of Chemicals and Fertilisers announced that the initiative aims to enhance domestic production while reducing dependence on imports. The venture will boost local innovation and fortify the value chain in India’s medical devices sector.

Two prominent sub-schemes under the program include the Marginal Investment Scheme for Reducing Import Dependence and the Medical Device Clinical Studies Support Scheme (MDCSS). As part of the Marginal Investment Scheme, companies will be eligible for a one-time capital subsidy of up to Rs 10 crore, granted on a reimbursement basis, to assist in the manufacturing of key components and reduce import reliance.

Moreover, the MDCSS will provide up to Rs 5 crore in financial support for conducting clinical evaluations, post-market studies, and more, also on a reimbursement basis. The government has encouraged eligible applicants to submit proposals online by July 2026, with full details available on the Department of Pharmaceuticals’ website.