Examine how domestic manufacturing of medical devices can contribute to affordable and resilient healthcare in India.

India imports nearly 80% of its medical devices, including 70% of high-end equipment [1]. Making devices at home can make healthcare cheaper and keep supplies secure. That depends on India moving from assembly to deep manufacturing.

Contribution to affordability

• Lower device prices: the PLI Scheme for Medical Devices (PLI-MD) lists cheaper devices and domestic supply chains among its goals [2]. Local production avoids freight and currency-linked costs.
• Wider diagnostics: PLI-MD 2.0 targets 3T MRI, PET-CT, ultrasound probes and IVD analyzers, which are not yet made in India [2]. Making them here can spread imaging and lab testing beyond the metros.
• Price control plus demand: the Standing Committee on Chemicals and Fertilisers recommended listing high-end critical-care devices as essential medicines for price control [1].

Contribution to resilience

• Supply security: home-grown chains for critical health equipment support Atmanirbhar Bharat [2] and protect against global supply shocks.
• Component depth: Target Segment 2 supports critical components and MSMEs at about a 9% incentive [2]. Making the parts, not just assembling them, is what makes supply resilient.
• Early results: over 60 high-end devices and components are now made in India, with production above ₹16,000 crore [2]. The National Medical Devices Policy 2023 aims to grow the sector from US$11 bn to US$50 bn [3].

Constraints

• Inverted duty structure: parts face higher duty than imported finished devices [1].
• Weak uptake: by June 2023, applicants had invested ₹852 crore of the ₹1,330 crore they committed [1]. High-end imports still rose between 2019–20 and 2022–23 [1].
• Ecosystem gaps: there are only 6 central testing labs, and imported used devices fall outside the Medical Device Rules, 2017 [1].

Way forward

• PLI-MD 2.0 drops the minimum sales threshold, lowers the minimum investment and keeps the application window open until 2035–36 [2]. These changes should be continued.
• Fix the duty structure, set up testing labs near industry clusters and set quality checks for used imports [1].
• Report domestic value addition, not just production value.

Domestic manufacturing links cheaper devices with secure supply chains. Output incentives work only alongside tax, testing and regulatory reform. Combined with these, it can bring India closer to universal health coverage (SDG 3.8) and the right to health under Article 21.