Moving from assembly to deep manufacturing is the real test of Atmanirbhar Bharat in high-technology sectors. Discuss with reference to medical devices.

In high-technology sectors, self-reliance shows in domestic value addition, not in how many machines are assembled in India. "Deep manufacturing" means making both the device and its components at home. Medical devices show the gap clearly: about 80% of devices sold in India are imported, including 70% of high-end ones [1].

Why deep manufacturing is the real test

• Economic: Assembling imported kits counts as production but adds little value in India. Scheme firms produced over ₹16,000 crore since 2021–22 [2], yet high-end imports rose between 2019–20 and 2022–23 [1].
• Strategic: Imported critical components leave health-equipment supply chains exposed to outside shocks. Building them at home is central to Atmanirbhar Bharat [2].
• Social: Making imaging and IVD equipment in India can lower device prices and widen access to diagnostics [2].

Progress so far

• PLI-MD (outlay ₹3,420 crore) [3]: more than 60 high-end devices and components are now made in India [2].
• PLI-MD 2.0 (extended to 2035–36) rewards depth. TS2 critical components (~9%) bring MSMEs into the chain, and TS3 nascent high-end devices (~9%) earn more than TS4 assembly-only devices (6%) [2].
• The National Medical Devices Policy 2023 aims to grow the sector from US$11 bn to US$50 bn [4].

Gaps that keep India at the assembly stage

• Inverted duty structure: parts pay higher duty than finished devices, so importing the whole machine costs less [1].
• Weak uptake: only about ₹134 crore in incentives was paid out by June 2025 [5]. Firms had invested just 64% of committed investment by June 2023 [1].
• Weak ecosystem: low R&D, a shortage of skilled workers and only 6 central testing labs. Only ₹89 lakh of ₹120 crore for device parks was spent in 2022–23 [1].
• Unregulated second-hand imports fall outside the Medical Device Rules, 2017 and undercut new Indian-made devices [1].
• The most advanced items, 3T MRI and PET-CT, are still not made in India [2].

Way forward

• Fix the duty structure, and keep concessions on imported components until Indian suppliers can meet demand [1].
• Set up testing labs near each industry cluster and regulate imports of used devices [1].
• Report domestic value addition and import levels, not only production value.

Medical devices show that production incentives create output, but self-reliance needs supply chains built in India. Matching PLI-MD 2.0 with reforms in tax, testing and skills can turn "Make in India" into "Made in India." That would deliver affordable, secure healthcare in line with SDG 3.