Govt offers up to Rs 10 crore subsidy for Medical Device Industry

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Govt offers up to Rs 10 crore subsidy for Medical Device Industry
Govt offers up to Rs 10 crore subsidy for Medical Device Industry

Last Updated on July 16, 2026 by The Health Master

Medical Device Industry

India’s New Medtech Push: Government Announces Up to ₹10 Crore Subsidy to Boost Medical Device Industry.

India is taking a massive leap into self-reliance in healthcare, and the Indian government is providing significant financial support for this initiative.

The Ministry of Chemicals and Fertilisers has opened applications for the Scheme for Strengthening of Medical Device Industry (SMDI), which offers a financial subsidy of up to ₹10 crore to domestic manufacturers of medical devices.

Two Sub-Schemes Under SMDI

The SMDI division of the Department of Pharmaceuticals has established two sub-schemes that will receive financial assistance on a reimbursement basis.

This means that the manufacturers will invest in the initiative first, and the government will reimburse them for the costs incurred.

Marginal Investment Scheme

The government will invest in the infrastructure of the medical device industry.

They will produce the essential components and raw materials required to produce these devices in India.

  • Target: Manufacturing of components, raw materials, devices, and accessories.

  • Goal: To minimize the importation of medical devices from foreign countries.

  • Financial Assistance: ₹10 crore.

Medical Device Clinical Studies Support Scheme

Any medical device concept cannot be brought to market without clinical trials to prove that the device is safe for human use.

The costs involved in clinical trials can be enormous, hence the creation of this sub-scheme.

Target: Funding for clinical and animal studies, clinical performance, and follow-up studies.

Goal: To show that the devices are safe and beneficial to patients when used as prescribed.

Financial Assistance: ₹5 crore.

Why the Government is Launching This Initiative

The Department of Pharmaceuticals is launching this initiative to increase the presence of Indian companies in the international medical devices market.

By lowering the barriers to entry for these manufacturers and innovators, the government hopes that more domestic companies will produce their essential medical devices to make healthcare for Indians more accessible and affordable.

Deadlines and How to Apply

There will be a significant amount of competition for the funds allocated to these schemes, so companies will need to act swiftly to apply.

Deadline: July 23, 2026, at 6:00 PM IST

How to Apply:  Proposals can be submitted through the following link:

smdi.lsssdc.in

For more information on the schemes, visit the Department of Pharmaceuticals website:

pharma-dept.gov.in/schemes

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Area required for manufacturing of Drugs, Cosmetics, Homoeopathic and Blood Centre

Manufacturing area / sectionArea prescribed for basic installations (Square Metre)Ancillary Area prescribed (Square Metre)Total Area required (Square Metre)
Allopathic drugs   
External Preparations301040
Oral Liquid Preparations301040
Tablets (uncoated) Non-Beta Lactum (Granulation + compression + packaging etc)602080
Coating (Non-Beta Lactum)30 1040
Tablets (uncoated) Beta Lactum (Granulation + compression + packaging etc)602080
Coating (Beta Lactum)30 1040
Powders (oral)3030
Hard Gelatin Capsules (Beta-lactam)251035
Hard Gelatin Capsules (Non Beta-lactam)251035
Ophthalmic Preparation251035
Eye ointment, Eye lotion2525
Pessaries2020
Inhalers & Vitrallae2020
Re-packing of drugs3030
Parenteral (Small Volume Parenteral)150100250
Parenteral (Large Volume Parenteral)150150300
Plastic (LVP) by Form-Fill-Seal / Blow, Fill –Seal technology250150400
Homoeopathic   
Mother tincture and
mother solutions
5555
Potentization section2020
Trituration, Tableting,
Pills and Globules section
5555
Syrups & other oral liquids2020
Ointments & lotions section2020
Ophthalmic Preparations2020
Packing & labelling5050
Cosmetics   
A. Powders1515
B. Skin powder for infants1515
C. Creams, Lotions, Shampoo, Shaving Creams, Hair Oils, Emulsions, Pastes, Cleansing Milk, Pomade2525
D. Nail Polish and Nail Lacquers1515
E. Lipsticks and Lipgloss1515
F. Depilatories used for eyes1010
G.
1. Eyebrows, Eyelashes, Eyeliners
2. Kajal and Surma

10 10



5 For base sterilization

10 15
H. Aerosols1515
I. Alcoholic Fragrance Solutions1515
J. Hair Dyes1515
K. Tooth powders general1515
L. Toilet Soaps100100
Blood Bank / Centre   
Blood Bank / Centre
(only for Whole Human Blood)
100100
Blood Component5050
Blood Bank / Centre
including Blood Components
150150
Apheresis1010
Medical Devices
Area not prescribed in MDR 2017 for manufacturing of Medical Devices
Medicinal Gas
Area not prescribed for manufacturing of Medicinal gases
Disinfectant
Area not prescribed for manufacturing of Disinfectants
API (Bulk drug)
Area not prescribed for manufacturing of API (Bulk drugs)
Empty Capsule Shell
Area not prescribed for manufacturing of Empty gelatin Shell
Soft Gelatin Capsules
Area not prescribed for manufacturing of Soft Gelatin Capsules
Cytotoxic substances / Sex hormones
Same area required as defined for tablet section
Laboratory
Area for Commercial Laboratory or Laboratory for manufacturing units not prescribed

Note: Requirement of ancillary area shall not apply to the units registered before 30-06-2005


Compiled by:

Lalit Kr. Goel, SDC, FDA Haryana

Rakesh Dahiya, ASDC, FDA Haryana


Download area requirement

Click below link to download the requirement for the manufacturing of Drugs, Cosmetics, Homoeopathic and Blood Centre