The Union government has invited fresh applications for its Production Linked Incentive (PLI) scheme dedicated to domestic medical device manufacturing. The program, which has been extended until the 2035-36 financial year, carries an outlay of approximately Rs 2,700 crore.
According to an official release, the government has introduced revised guidelines for this second phase to simplify the application process and enhance investor-friendliness. Key changes include the removal of the minimum sales threshold for claiming financial incentives and a reduction in the baseline capital expenditure requirement for manufacturers. Applicants will be able to submit their proposals via an online portal, which the government expects to become operational within the next 10 days.
The scheme targets four segments: medical consumables, disposables, and implants; critical components; high-end devices with limited domestic manufacturing; and high-end equipment currently only assembled in India. Incentive rates vary by segment, averaging 5% for the first category, 9% for the second and third, and 6% for the fourth. Companies are permitted to submit multiple applications across one or more of these target segments, with the application window remaining open for an extended, continuous period.
The revised framework aims to foster the production of advanced equipment such as 3T MRI machines, PET-CT scanners, ultrasound consoles, and high-throughput IVD analysers, which are not currently manufactured domestically. Supporters of the initiative noted that the policy change is designed to transform India into a global manufacturing hub by reducing reliance on imports, which are projected to exceed Rs 1 lakh crore this year.
Key facts
- The PLI scheme for medical devices has been extended until 2035-36 with a Rs 2,700 crore outlay.
- The government has eliminated the minimum sales threshold and lowered minimum investment requirements for applicants.
- Domestic manufacturing under the initial scheme, launched in 2021-22, has exceeded Rs 16,000 crore to date.
- The first phase of the scheme supported the production of over 60 types of medical devices, including MRI machines and cardiac implants.
- A new online application portal is scheduled to be launched within 10 days.
Why it matters
The policy aims to strengthen domestic supply chains, attract private investment, and create high-skilled employment opportunities. By incentivizing the production of high-end equipment, the government seeks to improve the global competitiveness of Indian-made medical technology and shift the sector toward self-reliance.
Background
The government initially launched the Medical Device Production Incentive Scheme in 2021-22 to promote domestic production of high-end equipment, including X-ray tubes, detectors, and various imaging and implant technologies.
Source: Times of India, Economic Times
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