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Union Cabinet's Approval Paves The Way For National Medical Devices Policy

By - King Stubb & Kasiva on May 24, 2023


The National Medical Devices Policy (NMDP) 2023 is a comprehensive policy developed by the Indian Government to drive accelerated growth in the medical sector and achieve multiple government objectives. These objectives include enhancing healthcare accessibility and universality, ensuring affordability, adopting a patient-centric approach, promoting preventive healthcare policies, facilitating research, expanding the healthcare sector, and pursuing various other goals. In April 2023, the policy received approval from the Union Cabinet, marking a significant milestone.

One of the key components of the policy is the establishment of four medical device parks, along with the implementation of the Production Linked Incentive (PLI) Scheme, among other associated initiatives.

Key Features Of The National Medical Devices Policy

The NMDP 2023, launched to promote growth and progress in India's medical sector, encompasses several critical features aimed at achieving its objectives:

  • Infrastructure Development: The policy facilitates the establishment of large medical parks, particularly near Special Economic Zones (SEZs). These medical parks, developed under the National Industrial Corridor Program and the proposed National Logistic Policy 2021, with the support of state governments, aim to enhance medical infrastructure and promote self-sufficiency in the country.
  • Streamlined Regulatory Mechanism: To foster research, development, and business activities, the policy proposes the creation of a "Single Window Clearance System" for obtaining licenses in the medical devices sector nationwide. This system would involve collaboration with allied ministries, such as the Ministry of Information and Technology, to streamline regulatory processes.
  • Attracting Investors and Investments: The policy aims to attract Public-Private Partnerships (PPPs), aligning with initiatives like Make in India, Start-up India, and Ayushman Bharat. By encouraging investments and partnerships, the policy seeks to drive growth and innovation in the medical sector.
  • Human Resources Development: The National Medical Devices Policy emphasizes the development of the existing workforce through upskilling and training programs. By nurturing a skilled and trained workforce, the policy aims to enhance the technical expertise within the medical sector and generate employment opportunities.
  • Growth of the Medical Sector: With the implementation of this policy, estimates project that the health sector will grow from the current $11 million to $50 million within the next five years. The Union Government envisions accelerating the growth of the medical devices sector while prioritizing patient-centered approaches and economic considerations.

Significance Of The Policy

  • The medical sector in India has demonstrated consistent and steady growth, making it a promising and vital industry. The COVID-19 pandemic has further underscored the significance of this sector, highlighting the urgent need for reforms.
  • The National Medical Devices Policy plays a crucial role in providing essential support, guidance, and direction to the medical sector. It aims to develop, strengthen, and expand the industry, transforming it into a self-reliant, globally competitive, and innovative sector capable of meeting the demands of India's healthcare system.
  • A key aspect emphasized in this policy is adopting a patient-centric approach. It focuses on meeting patients' evolving needs while driving the medical sector's expansion and development. The central government aims to make the Indian healthcare sector independent of international aid and support and position India among the top five global manufacturing hubs.
  • India is currently the 4th largest Asian Medical Devices Market and ranks among the top 20 medical device markets worldwide. To further enhance India's standing in this sector, the government has introduced the Production Linked Incentive (PLI) Scheme. This scheme incentivizes medical sector production, reducing the challenges related to research and development. It also enables access to increased capital funds through revenue generation and investments.


The approval of the National Medical Devices Policy by the Union Cabinet has paved the way for the medical sector to grow and develop in a structured and well-defined way by providing appropriate facilities and directions. Aiming to place the sector on an accelerated path of growth, the policy has also planned to develop a brand positioning system aiming to address various market concerns faced by the domestic medical device production sectors.

The creation of an export promotion council, as proposed by the policy would also encourage the creation and development of additional forums in the market which are aimed to unite several stakeholders of the medical sector to facilitate knowledge sharing and networking opportunities.

Even though a significant step has been taken by the union government by facilitating this scheme but still a herculean effort is needed by the domestic producers in the form of undertaking market innovations, collaborating, and developing adequate facilities and technology with the aid and support of the government schemes to make India a leading manufacturing hub across the globe.

Frequently Asked Questions

What is the National Medical Device Policy 2023?

The National Medical Device Policy 2023, recently notified by the Union government, aims to position India as a global leader in medical device manufacturing and innovation. Its objective is to achieve a 10-12% share in the expanding global market over the next 25 years.

Who oversees the regulatory approval for medical devices in India?

The regulatory approval for medical devices in India is overseen by the Central Drugs Standard Control Organization (CDSCO) under the Directorate General of Health Services in the Ministry of Health & Family Welfare. The CDSCO serves as the National Regulatory Authority (NRA) of India.

How will the National Medical Device Policy impact healthcare affordability in India?

The National Medical Device Policy aims to enhance healthcare affordability by promoting the domestic manufacturing of medical devices. This is expected to reduce import dependence, lower costs, and make medical devices more accessible and affordable for patients. Additionally, the policy encourages research and development, which can lead to the development of cost-effective medical devices.

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