Centre to announce new initiative for MedTech industry

The Union Health Minister J P Nadda is set to announce a new initiative aimed at the MedTech industry, which is a move to bolster India’s healthcare infrastructure. This announcement will be made at the upcoming press conference on 100 days of the Narendra Modi government’s third term.

Dr Arunish Chawla, Secretary, Department of Pharmaceuticals, Ministry of Chemicals and Fertilisers, said MedTech Architecture would have new elements, including marginal investment schemes, nudge and support for clinical studies, a clinical investigation framework, and identified clusters for pharma and MedTech across the country and their specific needs. The initiative will address critical challenges and introduce new policies to enhance the sector’s contribution to the economy, healthcare accessibility, and global market positioning.

He added that the initiative has four dimensions- income, spatial, social, and intergenerational mobility- that are critical for bridging the middle-income gap. The healthcare market of 1.5 billion people requires a diverse range of professionals, including physicists, engineers, and pharmacists, to support the MedTech sector. Building a robust domestic industry integrated with global value chains is essential. However, we face multiple arbitrages, and price arbitrage is just one aspect. Tax arbitrage, often overlooked, significantly impacts industry dynamics, influencing investment decisions and regulatory policies. Identifying all these arbitrages is crucial for addressing the challenges ahead.

Apurva Chandra, Secretary of the Ministry of Health and Family Welfare, highlighted the need for a balanced approach between infrastructure development and public welfare. “We have expanded healthcare safety nets to people over 70 years old, but healthcare has become expensive for the middle class,” Chawla said. While government expenditure on healthcare has increased — rising from 1.5 percent to 1.8 percent of the GDP — the challenge remains in balancing what is provided to the public and how infrastructure is supported.
MB Bureau