Haryana's Medical Device Manufacturing Revolution: Investment Plans & Industry Growth Strategy

Haryana Emerges as India's MedTech Manufacturing Hub

Haryana is positioning itself as a strategic hub for medical device manufacturing in India through aggressive policy reforms and infrastructure development. With the state government's Draft Haryana Medical Devices Manufacturing Policy 2024 targeting ₹3,000 crore in investments, alongside central government support schemes, the state is creating an ecosystem that could transform India's medical technology landscape.

This comprehensive analysis explores Haryana's medical device manufacturing ambitions, the investment opportunities available, and how this initiative fits into India's broader strategy to become self-reliant in healthcare manufacturing.

What is Haryana's Medical Device Manufacturing Policy?

Policy Overview and Objectives

The Draft Haryana Medical Devices Manufacturing Policy 2024 represents the state government's strategic vision to transform Haryana into a global medical device manufacturing powerhouse. The policy aims to attract substantial private investment while providing comprehensive incentives to manufacturers.

Key Targets

• Attract investments worth ₹3,000 crore in medical device manufacturing

• Create world-class infrastructure for MedTech production

• Develop integrated manufacturing ecosystems

• Generate employment opportunities in high-tech healthcare sectors

• Reduce India's dependence on imported medical equipment

Haryana MedTech City: The Flagship Project

Haryana MedTech City represents the state's ambitious plan to create a dedicated medical device park. This proposed facility will provide an integrated ecosystem featuring:

• Modern manufacturing infrastructure

• Research and development facilities

• Common infrastructure facilities (CIFs)

• Testing and quality assurance laboratories

• Logistics and supply chain support

• Skilled workforce development centers

India's Medical Device Manufacturing Landscape

Current Market Size and Growth Potential

India's medical device industry stands at approximately $11 billion and is growing rapidly. The sector represents only 1.5% of the global medical device market, indicating tremendous growth potential.

Market Dynamics

• India imports 70-80% of medical equipment requirements

• Major import sources: United States, China, and Germany

• Domestic production focuses primarily on low-end technology devices

• India exported medical devices worth $3.7 billion in FY24

• The sector is expected to reach $50 billion by 2030

Why Medical Device Manufacturing Matters for India

India's heavy reliance on imported medical devices creates several challenges:

• Supply Chain Vulnerabilities: Dependence on foreign manufacturers exposes India to supply disruptions, as witnessed during the COVID-19 pandemic.

• Cost Implications: Imported medical equipment drives up healthcare costs, making advanced treatments unaffordable for many Indians.

• Technology Gap: Limited domestic manufacturing restricts India's ability to develop cutting-edge medical technologies tailored to local healthcare needs.

• Economic Opportunity: Building domestic manufacturing capacity creates high-value jobs and retains healthcare spending within the economy.

Central Government Support: PLI Schemes and National Policies

Production Linked Incentive (PLI) Scheme for Medical Devices

The central government launched the PLI scheme for medical devices with a total outlay of ₹3,420 crore, running from FY 2020-21 to FY 2027-28.

Scheme Benefits

• 5% incentive on incremental sales over the base year (FY 2019-20)

• Coverage of four target segments:

  • Radiotherapy and imaging devices

  • Anesthesia and cardio-respiratory equipment

  • Critical care devices

  • Implants

Achievement Highlights

• 26 companies approved for manufacturing 138 products

• 19 greenfield projects commissioned

• Production includes high-end devices like MRI machines, CT scans, and linear accelerators

• Cumulative sales reached ₹8,039.63 crore (up to September 2024)

• Exports accounted for ₹3,844.01 crore

Promotion of Medical Device Parks Scheme

This central government initiative allocates ₹400 crore for developing common infrastructure facilities across four medical device parks.

Selected States

• Himachal Pradesh

• Tamil Nadu

• Madhya Pradesh

• Uttar Pradesh

Financial Assistance Structure

• 70% of project cost for regular states

• 90% of project cost for northeastern and hilly states

• Maximum assistance of ₹100 crore per park

• Scheme tenure: FY 2020-21 to FY 2024-25

National Medical Devices Policy 2023

Approved on April 26, 2023, this policy sets an ambitious target of growing India's medical device sector from $11 billion (2022) to $50 billion by 2030.

Six Policy Intervention Areas

1. Building enabling infrastructure

2. Facilitating research and development

3. Attracting foreign and domestic investments

4. Streamlining regulatory processes

5. Human resource development

6. Brand positioning and awareness creation

Haryana's Competitive Advantages for Medical Device Manufacturing

Strategic Location and Connectivity

Haryana's proximity to Delhi, excellent road networks, and access to international airports make it an ideal location for medical device manufacturing. The state offers:

• Easy access to major healthcare markets

• Proximity to research institutions and medical colleges

• Well-developed industrial infrastructure

• Reliable power supply and utilities

Incentives Under Haryana's Medical Device Policy

The Draft Haryana Medical Devices Manufacturing Policy 2024 offers comprehensive incentives to attract manufacturers:

• Electricity Duty Reimbursement: Manufacturers can receive reimbursement on electricity costs, reducing operational expenses.

• Stamp Duty Benefits: Significant reductions or exemptions on stamp duty for land acquisition and facility establishment.

• External Development Charges (EDC) Reimbursement: Support for infrastructure development costs associated with new manufacturing facilities.

• Effluent Treatment Plant (ETP) Support: Financial assistance for establishing environmental compliance infrastructure.

• Investment Ceiling: Cumulative incentives are capped at 125% of Fixed Capital Investment (FCI), ensuring substantial support for serious manufacturers.

• Policy Validity: Five-year commitment providing long-term certainty for investors.

Investment Opportunities in Haryana's Medical Device Sector

High-Demand Medical Device Categories

Investors can focus on manufacturing devices with strong domestic and export demand:

Diagnostic Imaging Equipment

• MRI machines

• CT scanners

• X-ray equipment

• Ultrasound systems

• Mammography devices

Surgical and Critical Care Devices

• Ventilators

• Anesthesia machines

• Patient monitoring systems

• Surgical instruments

• C-arm systems

Implantable Devices

• Cardiac stents

• Orthopedic implants

• Surgical meshes

• Drug-eluting devices

Consumables and Disposables

• Syringes and needles

• Surgical gloves

• Catheters

• Diagnostic kits

Technology Segments with Growth Potential

• AI-Driven Diagnostics: Artificial intelligence-powered diagnostic tools represent a high-growth segment with strong export potential.

• Wearable Health Tech: Smart health monitoring devices are gaining traction in both domestic and international markets.

• Precision Medicine Devices: Equipment supporting personalized healthcare approaches offers premium pricing and strong margins.

• Telemedicine Infrastructure: Remote healthcare delivery systems have seen accelerated adoption post-pandemic.

Comparing Haryana with Other Medical Device Manufacturing Hubs

Existing Medical Device Parks in India

1. Andhra Pradesh MedTech Zone (AMTZ): Located in Visakhapatnam, AMTZ is India's largest medical device manufacturing hub, offering comprehensive infrastructure and innovation support.

2. Kerala Medical Devices Park (KMDP): Situated in Wayanad, focusing on affordable, high-quality medical equipment production.

3. MedTech Zone in Telangana: Leveraging the state's pharmaceutical expertise to build integrated medical device manufacturing capabilities.

4. Tamil Nadu and Madhya Pradesh: Receiving central government support for developing medical device parks with common infrastructure facilities.

Haryana's Differentiators

Haryana distinguishes itself through:

• Proximity to the national capital and decision-makers

• Strong existing industrial base

• Access to skilled technical workforce

• Progressive state-level policies complementing central schemes

• Established pharmaceutical and healthcare industry presence

PRIP Scheme: Boosting R&D in Pharma and MedTech

Understanding the ₹5,000 Crore PRIP Initiative

The Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) scheme, notified on August 17, 2023, allocates ₹5,000 crore specifically for strengthening India's research and development ecosystem.

Fund Allocation

• ₹4,250 crore focused on R&D ecosystem acceleration

• Equal coverage for pharmaceutical and medical device sectors

• Support ranges from 35% to 50% of project costs

• Coverage for both early-stage and late-stage research funding

Implementation Timeline

• Expression of Interest (EOI) opening expected in March

• Bid submissions likely in April

• Expected launch by September 2025

How PRIP Benefits Medical Device Manufacturers in Haryana

Manufacturers establishing operations in Haryana can leverage PRIP funding for:

1. Innovation Development: Support for developing indigenous medical technologies adapted to Indian healthcare needs.

2. Clinical Studies: Funding for conducting clinical trials and validation studies for new medical devices.

3. Component Manufacturing: Developing critical raw materials and components to reduce import dependence.

4. Technology Transfer: Facilitating adoption of advanced manufacturing technologies and processes.

Skill Development and Workforce Training

Building a Skilled MedTech Workforce

Medical device manufacturing requires specialized skills combining engineering expertise with healthcare knowledge. Haryana's initiatives include:

• Technical Training Programs: Courses focusing on biomedical engineering, quality management, and regulatory compliance.

• Industry-Academia Partnerships: Collaboration between manufacturing units and engineering colleges to develop relevant curricula.

• Specialized Certifications: Programs for cleanroom operations, sterilization technologies, and quality assurance systems.

• Research Competencies: Building capabilities in medical device innovation and product development.

Regulatory Framework and Quality Standards

India's Evolving Medical Device Regulations

Medical devices are now classified as "drugs" under Section 3 of the Drugs and Cosmetics Act, 1940 (effective April 1, 2020).

• Regulatory Authority: The Central Drugs Standard Control Organisation (CDSCO) oversees medical device regulation and registration.

• National Single Window System (NSWS): Launched January 1, 2024, this platform consolidates approvals and simplifies import processes for medical devices.

Quality Standards and Certifications

Manufacturers in Haryana must comply with:

• ISO 13485 (Medical Device Quality Management)

• Good Manufacturing Practices (GMP)

• Indian Medical Device Rules, 2017

• International standards for export markets (CE marking, FDA approvals)

Foreign Direct Investment in Medical Devices

100% FDI Allowed in Medical Device Sector

India permits 100% foreign direct investment in medical device manufacturing through the automatic route, making it easy for international companies to establish operations.

FDI Inflows

• ₹25,959.25 crore ($3.7 billion) between April 2000 and September 2024

• Major investors include Johnson & Johnson, Medtronic, and Transasia Biomedicals

• FDI in the first three quarters of FY23 reached $3.4 million

Recent International Investments

• Medtronic: Announced a $350 million investment (March 2024) for expanding its Engineering & Innovation Center in Hyderabad, focusing on surgical technologies, robotics, and imaging.

• Omron Healthcare: Plans to establish a manufacturing plant in Tamil Nadu with a $15.5 million investment.

• Siemens Healthineers: Committing $197.7 million by 2025 for an innovation hub in Bengaluru.

Export Potential and Global Market Access

India's Medical Device Export Performance

India exported medical devices worth $3.7 billion in FY24, representing significant growth potential given the country's manufacturing capabilities.

Major Export Destinations

• United States

• European Union countries

• Middle East markets

• Southeast Asian nations

• African countries

Export Opportunities for Haryana Manufacturers

Manufacturers in Haryana can leverage:

• Cost-competitive production

• Quality certifications meeting international standards

• Government export promotion schemes

• Strategic location for air and sea freight

• Growing "Make in India" brand reputation

Challenges and Solutions in Medical Device Manufacturing

Key Challenges Facing the Industry

• Import Dependence on Components: Many critical components and raw materials still require imports, affecting cost competitiveness.

• Technology Gap: India lags in high-end medical device manufacturing compared to established global players.

• R&D Investment: Indian companies spend only $3 billion annually on R&D, far below the $50-60 billion spent in the US.

• Skilled Workforce Shortage: Specialized talent in medical device engineering remains limited.

Government and Industry Solutions

• Component Manufacturing Focus: The PRIP scheme specifically supports the development of critical components to deepen domestic value chains.

• Technology Transfer Programs: Encouraging partnerships with global technology leaders for knowledge transfer.

• R&D Incentives: PLI and PRIP schemes provide financial support for innovation activities.

• Skill Development Initiatives: Training programs targeting biomedical engineering and medical device manufacturing skills.

Future Outlook: Haryana's Medical Device Manufacturing Vision for 2030

Projected Growth Trajectory

By 2030, Haryana aims to:

• Establish itself as one of India's top three medical device manufacturing states

• Achieve ₹5,000+ crore in annual medical device production

• Create 10,000+ direct employment opportunities

• Develop at least 50 medical device manufacturing units

• Contribute significantly to India's ₹50 billion medical device market target

Integration with National Healthcare Goals

Haryana's medical device manufacturing push aligns with India's broader healthcare objectives:

• Ayushman Bharat: Supporting universal health coverage through affordable medical equipment.

• Health Infrastructure Expansion: Providing domestically manufactured devices for new hospitals and health centers.

• Medical Tourism: Offering cost-effective, high-quality medical procedures supported by locally manufactured devices.

• Pandemic Preparedness: Building domestic capacity for critical care equipment to handle future health emergencies.

How to Invest in Haryana's Medical Device Sector

Steps for Prospective Investors

• Policy Understanding: Review the Draft Haryana Medical Devices Manufacturing Policy 2024 and eligibility criteria for various incentives.

• Site Selection: Identify suitable locations within Haryana, considering proximity to Haryana MedTech City or other industrial areas.

• Central Scheme Applications: Apply for PLI scheme benefits if manufacturing target products in eligible categories.

• State Incentive Registration: Register with the Department of Industries & Commerce, Government of Haryana, to access state-level benefits.

• Regulatory Compliance: Ensure facility design and operations meet CDSCO requirements and international quality standards.

• Workforce Planning: Develop recruitment and training strategies to build a skilled manufacturing team.

Contact Points

State Level

• Department of Industries & Commerce, Government of Haryana

• Invest Haryana (investharyana.in)

Central Government

• Department of Pharmaceuticals

• Invest India (investindia.gov.in)

Haryana's Strategic Position in India's MedTech Revolution

Haryana's focused approach to medical device manufacturing, combining state policy initiatives with central government schemes, creates a compelling ecosystem for investors. The Draft Haryana Medical Devices Manufacturing Policy 2024's target of attracting ₹3,000 crore in investments, coupled with support from national programs like the PLI scheme (₹3,420 crore) and PRIP initiative (₹5,000 crore), positions the state as a strategic hub for medical technology production.

As India works toward reducing its 70-80% import dependence on medical devices and growing the sector from $11 billion to $50 billion by 2030, Haryana offers investors a unique combination of strategic location, progressive policies, and comprehensive infrastructure support. The state's proximity to the national capital, strong industrial base, and commitment to building a skilled workforce make it an attractive destination for both domestic and international medical device manufacturers.

For investors seeking opportunities in India's fast-growing healthcare sector, Haryana's medical device manufacturing ecosystem presents a timely and strategic entry point into one of the world's most promising MedTech markets.

Frequently Asked Questions

Q: What is the total investment target for Haryana's medical device manufacturing sector?

• The Draft Haryana Medical Devices Manufacturing Policy 2024 aims to attract investments worth ₹3,000 crore in medical device manufacturing. Additionally, manufacturers in Haryana can access central government schemes like the PLI scheme (₹3,420 crore national outlay) and PRIP scheme (₹5,000 crore for pharma and MedTech R&D nationally).

Q: What incentives does Haryana offer to medical device manufacturers?

• Haryana provides comprehensive incentives, including electricity duty reimbursement, stamp duty benefits, external development charges (EDC) reimbursement, and effluent treatment plant (ETP) support. The cumulative incentives are capped at 125% of Fixed Capital Investment (FCI).

Q: How does Haryana's medical device policy compare to other states?

• Haryana offers competitive incentives comparable to states like Andhra Pradesh, Tamil Nadu, and Telangana. Its key differentiators include proximity to Delhi, excellent connectivity, established industrial infrastructure, and progressive state-level policies that complement central government schemes.

Q: What is the PLI scheme for medical devices?

• The Production Linked Incentive (PLI) scheme for medical devices, with a ₹3,420 crore outlay, provides a 5% incentive on incremental sales over the base year for manufacturers of specified medical devices, including imaging equipment, radiotherapy devices, critical care equipment, and implants. The scheme runs from FY 2020-21 to FY 2027-28.

Q: Is 100% FDI allowed in medical device manufacturing in India?

• Yes, India permits 100% foreign direct investment in the medical device sector through the automatic route, making it easy for international companies to establish manufacturing operations without prior government approval.

Q: What is the PRIP scheme, and how does it benefit medical device manufacturers?

• The Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) scheme allocates ₹5,000 crore (with ₹4,250 crore focused on R&D) to support innovation in pharmaceutical and medical device sectors. It covers 35-50% of project costs for both early-stage and late-stage research and development activities.

Q: What types of medical devices have the highest demand in India?

• High-demand categories include diagnostic imaging equipment (MRI, CT scanners, ultrasound), critical care devices (ventilators, patient monitors), surgical instruments, implantable devices (cardiac stents, orthopedic implants), and consumables (syringes, catheters, diagnostic kits).

Q: How is India reducing its dependence on imported medical devices?

• India is reducing import dependence through the PLI scheme by encouraging domestic manufacturing, establishing medical device parks with common infrastructure, supporting R&D through the PRIP scheme, attracting foreign investments, and developing skilled workforce capabilities.

Q: What is Haryana MedTech City?

• Haryana MedTech City is the state's proposed medical device park that will provide integrated manufacturing infrastructure, research and development facilities, testing laboratories, and common infrastructure facilities for medical device manufacturers.

Q: When will Haryana's medical device manufacturing facilities become operational?

• While specific timelines for Haryana MedTech City haven't been announced, the Draft Medical Devices Manufacturing Policy 2024 is valid for five years. Central government-supported medical device parks are expected to be functional by early 2027.

Q: What skills are required for medical device manufacturing?

• Medical device manufacturing requires expertise in biomedical engineering, quality management systems (ISO 13485), cleanroom operations, sterilization technologies, regulatory compliance, and product development. Haryana is developing training programs to build these specialized skills.

Q: How can small and medium enterprises (SMEs) participate in medical device manufacturing?

• SMEs can participate by focusing on component manufacturing, consumables production, or becoming suppliers to larger medical device manufacturers. They can access financial support through the marginal investment scheme announced in the strengthening medical device industry scheme (₹500 crore outlay).

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