Government Invites Applications to Boost Medical Device Industry

Eligible organisations can apply under two dedicated sub-schemes that focus on expanding manufacturing capabilities and supporting clinical research for medical devices.

The Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers has opened applications under the Scheme for Strengthening of Medical Device Industry (SMDI), offering financial support to encourage domestic manufacturing, promote innovation and reduce India's dependence on imported medical devices and components. The initiative is designed to strengthen the country's medical technology ecosystem while creating deeper and more resilient supply chains for the healthcare sector.

Eligible organisations can apply under two dedicated sub-schemes that focus on expanding manufacturing capabilities and supporting clinical research for medical devices. The government believes these incentives will help Indian companies develop advanced products within the country while improving the availability of high-quality medical technologies for healthcare providers and patients.

Two Schemes to Strengthen Manufacturing and Research

Applications have been invited under the Marginal Investment Scheme for Reducing Import Dependence and the Medical Device Clinical Studies Support Scheme (MDCSS). Both programmes are intended to address different stages of the medical device value chain, ranging from manufacturing critical components to supporting clinical evaluation of innovative products.

Under the Marginal Investment Scheme, selected applicants will receive a one-time capital subsidy of up to ₹10 crore on a reimbursement basis. The financial assistance will support the domestic production of key components, raw materials, finished medical devices and accessories that are currently imported in significant quantities. By encouraging local manufacturing, the scheme seeks to improve supply chain resilience while reducing dependence on overseas suppliers.

The government expects the initiative to encourage investments in advanced manufacturing technologies, helping Indian companies build stronger production capabilities and compete more effectively in both domestic and international markets.

Financial Support for Clinical Studies

The Medical Device Clinical Studies Support Scheme focuses on strengthening the research and validation process for medical technologies developed in India. Under this programme, eligible applicants can receive financial assistance of up to ₹5 crore on a reimbursement basis to conduct clinical investigations, clinical performance evaluations, post-market follow-up studies and animal studies.

Clinical testing plays a critical role in demonstrating the safety and effectiveness of medical devices before they reach hospitals and patients. The financial support offered through the scheme is expected to reduce the cost burden on manufacturers while encouraging the development of innovative healthcare technologies within the country.

By supporting both manufacturing and clinical research, the Department of Pharmaceuticals is creating a more comprehensive framework for the growth of India's medical device industry, enabling companies to move from product development to commercialisation with greater confidence.

Applications Open Until July 23

The Department has invited eligible entities to submit their proposals through the dedicated online portal before 6:00 PM on July 23, 2026. Applicants are encouraged to carefully review the eligibility criteria, application process and operational guidelines available on the Department of Pharmaceuticals' official website before submitting their proposals.

The Scheme for Strengthening of Medical Device Industry forms part of the Government's broader efforts to build a self-reliant healthcare manufacturing ecosystem capable of meeting growing domestic demand while reducing reliance on imported technologies. Stronger local production of medical devices can improve supply security, encourage innovation, create skilled employment opportunities and support the expansion of India's healthcare infrastructure.

As the country's healthcare sector continues to grow, initiatives such as SMDI are expected to play an important role in strengthening manufacturing capacity, promoting research and enabling Indian companies to develop globally competitive medical technologies that serve both domestic and international markets.