Assistance to Medical Device Clusters for Common Facilities (AMD-CF)
Background and Rationale
- India’s medical devices sector is still developing compared to its pharmaceutical industry.
- Currently, a large part of high-end medical devices is imported, which makes healthcare costlier and creates supply vulnerabilities.
- To strengthen domestic capacity, the government launched the AMD-CF scheme (2023–24 to 2026–27) as a focused intervention, while also announcing the National Medical Devices Policy, 2023 for long-term growth.
Quick Facts about AMD-CF Scheme
- Purpose: Promote self-reliance in manufacturing of medical devices.
- Tenure: FY 2023–24 to 2026–27.
- Components:
- Assistance for Common Facilities
- Assistance for Testing Facilities
- Project Management Agency: SIDBI (Small Industries Development Bank of India).
Objectives
- Strengthen existing medical device clusters by providing financial aid.
- Establish more testing laboratories to ensure Indian devices meet global quality and regulatory standards.
Salient Features
(A) Assistance for Common Facilities
- Purpose: To create shared infrastructure such as training centers, R&D hubs, and common utilities.
- Incentive:
- Up to 70% of approved project cost or ₹20 crore, whichever is less.
- For Himalayan and North-East states: Up to 90% of project cost or ₹20 crore.
- Implementation:
- A Special Purpose Vehicle (SPV) must be formed by at least 5 medical device units in a cluster.
- State Governments can also promote clusters.
- Individual unit’s share capped at 40%, while medical device enterprises collectively must hold at least 51% equity in SPV.
(B) Assistance for Testing Facilities
- Purpose: To expand the number of Medical Device Testing Laboratories in India.
- Incentive:
- Up to 70% of approved cost or ₹5 crore, whichever is less.
- For Himalayan/North-East states: Up to 90% or ₹5 crore.
- Eligibility:
- National/State Government institutions or private institutions can apply.
- Facilities must be for testing Class A, B, C, and D medical devices (including in-vitro diagnostic devices under MDR, 2017).
- Financial Discipline: The institution must open a separate account for funds sanctioned under this scheme.
National Medical Devices Policy, 2023 – The Bigger Picture
While AMD-CF addresses immediate needs of infrastructure and testing, the National Medical Devices Policy, 2023 lays down a 25-year vision.
Vision
- Follow an accelerated, patient-centric growth path.
- Make India a global leader in medical devices manufacturing and innovation.
Goals
- Increase India’s share to 10–12% of the global market in the next 25 years.
- Expand the sector’s size from $11 billion (present) to $50 billion by 2030.
Strategy Pillars
- Regulatory streamlining → Simpler, transparent approvals.
- Enabling infrastructure → Clusters, parks, logistics.
- Facilitating R&D and Innovation → Stronger research ecosystem.
- Attracting investment → Domestic and global investors.
- Human resource development → Skilled workforce for the sector.
- Brand positioning & awareness → Establish “Made in India” medical devices globally.
Why This Matters for UPSC?
- AMD-CF = short-term focused scheme (2023–2027) for infrastructure and testing support.
- National Medical Devices Policy = long-term roadmap for making India a global hub.
- Together, they reflect the Atmanirbhar Bharat Abhiyan in the health sector, complementing other PLI schemes for pharma and medical devices.
✅ In summary: The AMD-CF scheme is like building the “foundation” — clusters, labs, shared facilities. The National Medical Devices Policy, 2023 is like drawing the “blueprint of the skyscraper” — a 25-year vision to turn India into a global giant in the medical devices industry.