Lok Sabha Question No. 2078 (UNSTARRED), answered on 2023-12-15
Subject: Healthcare Manufacturing
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Keshari Devi Patel, Rajendra Dhedya  Gavit, Ranjanben Dhananjay Bhatt

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION NO. 2078 TO BE ANSWERED ON 15 th  December, 2023

## Healthcare Manufacturing

## 2078.   SHRIMATI KESHARI DEVI PATEL: SHRI RAJENDRA DHEDYA GAVIT: SHRIMATI RANJANBEN DHANANJAY BHATT:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a)  whether  the  country  has  achieved  a  position  among  the  world's  top  five  healthcare manufacturers across the globe;
- (b) if so, the details thereof;
- (c) whether the medical equipment/machinery sector has been recognised as a sunrise sector in the country;
- (d) if so, the details thereof;
- (e) whether the Government has taken/proposes to take any initiatives to establish India as a manufacturing hub for healthcare products globally; and
- (f) if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI BHAGWANTH KHUBA)

(a) to (b):  The Indian Pharmaceutical industry is the 3 rd largest in the world by volume and 14 th largest in terms of value. Further, India is the 4th largest Asian medical devices market after Japan, China, and South Korea. India's market share in global medical device market is estimated to be 1.5%.

India's exports of pharmaceuticals and medical devices are as under: -

|   S. No. | Description                       |   F.Y. 2020-21 (Value in USD Million ) |   FY 2021-22 (Value in USD Million ) |   FY 2022- 23(Value in USD Million ) |
|----------|-----------------------------------|----------------------------------------|--------------------------------------|--------------------------------------|
|        1 | Bulk Drugs and Drug Intermediates |                                   4430 |                                 4469 |                                 4709 |
|        2 | Drug Formulations and Biologicals |                                  19042 |                                19001 |                                19459 |
|        3 | Consumables &Disposables          |                                   1290 |                                 1378 |                                 1605 |
|        4 | Surgical Instruments              |                                     54 |                                   71 |                                   72 |
|        5 | Electronics Equipment             |                                    985 |                                 1163 |                                 1335 |
|        6 | Implants                          |                                     99 |                                  135 |                                  188 |
|        7 | IVD Reagent                       |                                    104 |                                  176 |                                  191 |

Source: DGCIS, Ministry of Commerce and Industry

(c)  to  (f):   Yes,  Sir.  Medical  equipment/machinery  sector has been recognized as a sunrise sector in the country, the Market Size of medical device was USD 11 billion in 2020 and is expected to grow rapidly. The Government of India has taken several measures to encourage domestic  manufacturing  of  Medical  Devices.  The  steps  taken  to  support  Medical  Devices Industries are as under: -

- i. Production  Linked  Incentive  Scheme  for  Promoting  Domestic  Manufacturing  of Medical Devices (PLI MD) with total financial outlay of Rs. 3,420 crore and tenure from FY 2020-2021 to FY 2027-28. The financial incentive is to be given to selected companies at the rate of 5% on incremental sales of medical devices manufactured in India and covered under the Target segments of the scheme, for a period of five (5) years.  26  participants  have  been  approved  under  the  scheme.  Manufacturing  of  39 products have started.
- ii. Production Linked Incentive Scheme for Pharmaceuticals has been launched with total financial outlay of Rs. 15,000 crore and tenure from FY 2020-2021 to FY 2028-29. The scheme covers the In-Vitro Diagnostic (IVD) devices under product Category 3. Total 55 participants have been approved under the scheme, out of which 5 participants are selected for In-Vitro Diagnostic (IVD).
- iii. The scheme Promotion of Medical Devices Parks, with a total financial outlay of Rs. 400  crore  and  the  tenure  from  FY  2020-2021  to  FY  2024-2025,  provides  for  the maximum  financial  assistance  of  Rs.  100  crore  each  to  4  selected  States/Union Territories for creation of Common Infrastructure Facilities in the upcoming Medical Devices Parks. Under the scheme, final approval for financial assistance of Rs. 100 crore each, has been given to the States of Himachal Pradesh, Madhya Pradesh, Tamil Nadu, and Uttar Pradesh.
- iv. The scheme Assistance to Medical Device Clusters for Common Facilities (AMD-CF) provides  for  financial  incentive  to  Medical  devices  clusters  to  develop  common infrastructure  facilities  like  Medical  devices  testing  labs,  E-waste  treatment  facility, logistic centers. The scheme also provides for financial assistance to National or State level  Government or Private institutions interested to establish or strengthen testing facilities for medical devices.

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