Why in news?
The Department of Pharmaceuticals invited applications in June 2026 under the Scheme for Strengthening of Medical Device Industry (SMDI) to promote domestic manufacturing. The call for proposals covers sub‑schemes that offer capital subsidies for making key components and funding for clinical studies. The scheme supports India’s broader goal of reducing dependence on imported medical devices.
Background
India’s medical device market is valued at around US$14 billion and could double by 2030. However, domestic manufacturing still relies heavily on imported components and lacks common infrastructure. To address this, the Union Minister for Chemicals and Fertilizers launched SMDI in November 2024 with a total outlay of ₹500 crore. The scheme targets critical areas of the industry, including manufacturing, skill development, clinical research and promotion.
Key components of SMDI
- Common facilities for clusters (₹110 crore): The government provides financial assistance for creating shared infrastructure such as R&D laboratories, design and testing centres and animal labs. Grants up to ₹20 crore are available for common facilities and up to ₹5 crore for testing facilities.
- Marginal Investment Scheme (₹180 crore): This sub‑scheme offers a one‑time capital subsidy of 10–20 % (up to ₹10 crore per project) to manufacturers of key components, raw materials and accessories. Its aim is to reduce import dependence and deepen the domestic supply chain.
- Capacity building and skill development (₹100 crore): Support is provided to develop a skilled workforce capable of designing and producing medical devices. Funding includes up to ₹21 crore for master’s courses in central institutes and stipends for short‑term and diploma courses in technical training.
- Medical Device Clinical Studies Support Scheme (₹100 crore): Financial assistance helps companies conduct animal studies, clinical investigations and post‑market follow‑up studies. Grants range from ₹2.5 crore for animal studies to ₹5 crore for clinical investigations, and ₹1 crore for clinical performance evaluations of in‑vitro diagnostic products. This support aims to generate robust data and facilitate regulatory approvals.
- Medical Device Promotion Scheme (₹10 crore): Funding is available for industry associations and export councils to hold conferences, conduct surveys and promote awareness about the sector. This encourages collaboration and knowledge sharing.
Recent invitation for proposals
In June 2026 the Department of Pharmaceuticals invited manufacturers to apply under the marginal investment and clinical studies support sub‑schemes. Eligible projects can receive up to ₹10 crore for setting up manufacturing units or up to ₹5 crore for clinical research. Applications are to be submitted through an online portal by July 2026. The invitation aims to accelerate the creation of a self‑sufficient medical device ecosystem in India.
Conclusion
The Scheme for Strengthening of Medical Device Industry is a comprehensive effort to make India a hub for quality medical devices. By financing common infrastructure, offering capital subsidies, developing skills and supporting clinical research, the government hopes to reduce import dependence and foster innovation. Timely participation by manufacturers and researchers will be crucial for the scheme’s success.
Sources: Press Information Bureau