Lok Sabha Question No. 2626 (UNSTARRED), answered on 2023-08-04
Subject: High-End Medical Equipments
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Parbatbhai Savabhai Patel

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

LOK SABHA UNSTARRED QUESTION NO. 2626 TO BE ANSWERED ON 04 th  August, 2023

## High-End Medical Equipments

## †2626. SHRI PARBATBHAI SAVABHAI PATEL:

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

(a) the steps taken/proposed to be taken by the Government on high value medicine and highend medical equipments to reduce the dependence on imports by the country;

(b)  the  steps  taken/proposed  to  be  taken  by  the  Government  to  reduce  the  dependence  on imports by improving indigenous production in the country; and

(c) the number of Micro, Small and Medium Enterprises (MSMEs) covered under Production Linked  Incentive  (PLI)  scheme  in  pharmaceutical  sector  across  the  country  particularly  in Gujarat?

## ANSWER

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

(a)  &  (b):  The  Government  of  India  has  taken  several  measures  to  encourage  domestic manufacturing of Pharmaceuticals and Medical Devices to reduce import dependence. The steps taken to support Medical Devices and Pharma 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 applicants have been approved under the scheme
- 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  applicants  have  been  approved  under  the  scheme  out  of  which  5  applicants  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 Uttar Pradesh, Tamil Nadu, Madhya Pradesh and Himachal Pradesh.
- iv. Under  the  scheme Assistance  to  Medical  Device  Clusters  for  Common  Facilities (AMD-CF) the government is providing 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  financial  assistance  to National  or  State  level  Government  or  Private  institutions  interested  to  establish  or strengthen testing facilities for medical devices.
- v. To attract investments in Medical Devices sector, the Government has allowed 100% FDI under automatic route
- vi. In  addition,  the  Department  has  recently  notified  National  Medical  Devices  Policy, 2023 and has set up Export Promotion Council for Medical Devices.

(c):     Under  Production  Linked  Incentive  (PLI)  Scheme  for  Promotion  of  Domestic Manufacturing  of  critical  Key  Starting  Materials  (KSMs)/  Drug  Intermediates  and  Active Pharmaceutical Ingredients (APIs), 12 MSMEs companies have been selected, out of which 3 companies  are  located  in  the  state  of  Gujarat.  Under  PLI  Scheme  for  Pharmaceuticals,  20 applicants are MSMEs, out of which 5 applicants are located in the state of Gujarat.

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