Govt Testing Fund May Help Indian Medical Devices Move From Cost To Quality: AiMeD

India’s ambition to become a global medical-device manufacturing hub may get a boost from the Government’s recent decision to fully fund advanced testing equipment, a move the industry said could address one of the sector’s biggest gaps—access to credible testing infrastructure.

Commerce and Industry Minister Piyush Goyal recently said the government can provide 100% funding for the acquisition of testing equipment by the medical-device industry, signalling a stronger push to build domestic capabilities rather than depend on overseas facilities.

Welcoming the announcement, the Association of Indian Medical Device Industry (AiMeD) said that this commitment is not only a major enabler for building a globally competitive manufacturing ecosystem but also a clear endorsement of AiMeD’s long-standing advocacy for supportive policies and infrastructure.

Rajiv Nath, forum coordinator, AiMeD, said, “This announcement is a recognition of AiMeD’s persistent asks and lobbying efforts to strengthen India’s medical device ecosystem. It validates our shared vision of making India one of the top five global medical device manufacturing hubs.

Advanced testing infrastructure is the missing link, and full government support will help Indian manufacturers move from being cost-competitive to becoming technology- and quality-competitive worldwide,” he said in a statement here.

The Association opined that shared, internationally accredited testing facilities whose reports can be globally accepted with the credibility desired will particularly benefit MSMEs and startups, reducing prohibitive costs and accelerating innovation.

However, Nath urged that implementation should be in close consultation with industry to ensure alignment with global standards and actual manufacturer needs.

“It’s a wise investment that the Government is initiating and will have a huge Brand India payback," he said.

Nath expressed confidence that this initiative will reduce dependence on overseas testing, strengthen domestic manufacturing, and enhance India’s ability to compete effectively in global markets.

“This advanced testing infrastructure is the missing link, and full government support will help Indian manufacturers move from being cost-competitive to becoming technology- and quality-competitive worldwide,” Nath said.

At present, manufacturers may have to rely on specialised facilities, including those outside the country, for certain tests. For smaller firms, the cost of testing, certification and repeated compliance checks can become a significant part of the expense of developing a new product.

This can be particularly difficult for startups, which may have the technology but lack the financial capacity to undertake expensive testing at every stage of development, said Nath.

The AiMeD has argued that internationally accredited common testing centres, whose reports are accepted globally, would allow manufacturers to access sophisticated infrastructure without each company having to invest in expensive equipment.

The benefit could extend beyond reducing costs. Easier access to testing can shorten product-development cycles, allow manufacturers to identify design problems earlier and make it easier for Indian companies to demonstrate compliance with international standards.

Addressing pharma industry events in New Delhi recently, Goyal had asked the industry to identify its testing requirements and approach the Bureau of Indian Standards (BIS). The government, he said, would be willing to fund the best available equipment needed for such facilities.

Goyal said India needed to strengthen its domestic capabilities rather than remain dependent on imported components and technology.

“We must develop a critical component ecosystem by strengthening our domestic capabilities with high quality,” he said. The Minister also called on Indian companies to work more closely with global firms through technology partnerships, joint ventures and joint research and development.