By NK Ganguly, Former Director General, Indian Council of Medical Research

India’s healthcare system stands at a structural inflection point. While metropolitan markets are approaching capacity, the next wave of clinical expansion is shifting towards tier-II and -III cities. Demand for advanced diagnostics and tertiary care is rising rapidly in these regions, but infrastructure, capital access, and trained manpower remain unevenly distributed.

At the same time, India finds itself divided on a critical question: should refurbished medical equipment form part of this expansion?

The debate has intensified in recent months. Concerns around quality, safety, and regulatory oversight have led to calls for tighter scrutiny, and the government has constituted a committee to examine the issue. Yet a clear policy framework is still awaited. In the absence of regulatory clarity, the conversation risks becoming polarised, framed as a binary choice between patient safety and affordability.

The real issue is not whether refurbished systems should be used, but how they should be governed and how India can simultaneously strengthen its domestic manufacturing and refurbishment capabilities.

Tier 1 hospitals are increasingly overburdened, often serving as referral hubs for patients travelling long distances for imaging, dialysis, oncology care or complex procedures. The strain on urban infrastructure reflects a deeper structural imbalance in the geographic distribution of medical technology. If India is to scale healthcare responsibly, the question is not only how to build more facilities but how to equip them sustainably.

Advanced imaging platforms such as CT and MRI, catheterisation laboratories, radiation therapy systems, and high-end surgical technologies require significant capital outlay. For many providers in tier-II and -III markets, procuring brand-new systems is financially prohibitive. Expansion is frequently delayed because capital is constrained.

In this context, high-performance refurbished equipment becomes relevant not as a compromise, but as a transitional instrument for decentralised capacity-building.

A central challenge in this debate is the conflation of “used”, “pre-owned” and “refurbished” devices. They are not interchangeable. High-quality refurbishment is a structured, documented, and validated engineering process. It typically includes controlled de-installation, detailed inspection, and disassembly, replacement of worn components, hardware and software updates, calibration to OEM specifications, and thorough quality testing prior to reinstallation and site acceptance validation.

When executed to defined standards, refurbished systems can cost 30-70% less than new equipment while maintaining clinical functionality. The critical variable is not the age of the device, but the integrity of the refurbishment and transparency of lifecycle documentation.

However, an important dimension often overlooked is where refurbishment and quality control are conducted. At present, much of the high-end refurbishment, testing, and certification takes place in Western markets. India frequently imports these systems after they have been refurbished and quality-checked abroad.

This raises a strategic question: should India remain dependent on overseas ecosystems, or should it build its own?

India’s long-term healthcare resilience cannot rely solely on importing refurbished systems. Nor can it indefinitely depend on external ecosystems for lifecycle engineering and quality control.

Capacity-building must become central to policy design. This includes: Strengthening domestic manufacturing of advanced imaging technologies such as CT and MRI systems; establishing certified refurbishment hubs backed by standardised protocols; developing skilled biomedical engineering talent capable of executing complex refurbishment and quality validation processes; creating regulatory pathways that integrate refurbishment standards with broader medical device manufacturing policy.

A robust policy framework can align refurbished device governance with the broader ambition of indigenous production under India’s industrial strategy. Refurbishment, regulated properly, need not compete with local manufacturing; it can complement it by creating technical expertise, jobs, and lifecycle management capability.

In fact, building structured refurbishment ecosystems can serve as a bridge towards deeper manufacturing competence. Engineering knowledge gained in disassembly, calibration, testing, and validation strengthens India’s technical base for producing next-generation systems.

Concerns around patient safety, reliability, and long-term serviceability are legitimate. Variability in refurbishment standards or weak after-sales support can erode clinician confidence and patient trust. These risks underscore the need for precision regulation.

Globally, refurbished medical technology is incorporated into health system planning under structured oversight. In England, the National Health Service deploys refurbished devices across hospital trusts as part of capital optimisation strategies while maintaining strict safety and clinical benchmarks. The emphasis is on lifecycle governance and accountability.

India now has an opportunity to move beyond a binary debate. The committee examining refurbished medical devices can lay the groundwork for a calibrated framework that distinguishes uncertified used imports from certified refurbished systems.

A forward-looking policy should mandate clearly documented refurbishment protocols, rigorous performance validation against established standards, full traceability of critical components, defined residual life criteria, and minimum warranty and service obligations, all supported by robust domestic certification and oversight mechanisms. Crucially, such a framework should not operate in isolation but should incentivise the development of domestic refurbishment capacity and strengthen manufacturing capabilities so that governance, technical competence, and industrial growth evolve together.

India’s healthcare expansion cannot rely solely on high-cost new installations in every geography. Nor can it allow an unregulated secondary market to proliferate. The solution lies in calibrated regulation that enables responsible adoption while safeguarding patient safety alongside deliberate investment in domestic capability.

The debate should therefore evolve from whether refurbished equipment belongs in India, to how it can be governed intelligently and leveraged strategically.

Disclaimer: The views expressed are the author’s own and do not reflect the official policy or position of Financial Express.