MTaI welcomes ERSO initiative, urges inclusion of medical devices to power India’s global repair hub ambitions

New Delhi: The Medical Technology Association of India (MTaI) has welcomed the Government of India’s Electronics Repair Services Outsourcing (ERSO) initiative to make India a global leader in electronics repair. MTaI urges the inclusion of medical devices under this scheme.

The ERSO pilot in Bengaluru, involving Lenovo and Flex, demonstrated India’s competitiveness – cutting customs clearance from 10-15 days to 2-3 and enabling exports to the U.S. and Europe. With the government targeting 20% of the $100 billion global repair market, medical device refurbishment presents a natural extension. This expanded ERSO ecosystem can attract global expertise through technology transfer, establish India as a preferred destination for export growth, and develop sophisticated systems for component harvesting.

India’s healthcare, especially in tier 2-4 cities and rural areas, is under stress due to the suspension of refurbished medical device imports. Over 70% of facilities here are small private providers who rely on affordable pre-owned equipment like CT, MRI, and now even robotic systems.

MTaI Chairman Pavan Choudary warns that prolonged suspension could harm providers and hurt jobs, and proposes interim imports with DGHS and MoEFCC approvals. Choudary clarifies the difference between import substitution and import replacement. Import substitution, he explains, is usually government-backed driven by tariffs, non-tariff barriers, and subsidies – but often reduces competitiveness and efficiency. Import replacement, by contrast, is organic: for example, bicycle repair shops in Japan first repaired imported bicycles, then produced spare parts, and eventually made entire bicycles themselves. This process created an ecosystem that enabled giants like Honda and Toyota to emerge. When import replacement happens, jobs boom in cities while village economies also grow through demand for raw materials.

Globally, pre-owned medical equipment accounts for 7-9% of needs in the U.S. and EU, with countries like the U.K., Japan, Canada, South Korea, and Australia already permitting such trade.

To guarantee quality and patient safety, MTaI recommends limiting refurbishment of medical devices to Original Equipment Manufacturers (OEMs). This ensures devices are updated by experts with genuine spares that meet strict regulatory standards. Pre-owned equipment with service guarantees can expand access and affordability, especially beyond metros, while also creating skilling opportunities in line with India’s ambition to export 2 lakh healthcare workers annually.

MTaI calls for a collaborative policy framework that safeguards healthcare access, builds skills, and positions India as a global hub for medical device repair and refurbishment.