The Government of India has taken a decisive step to bolster the domestic production of medical devices by extending the Production Linked Incentive (PLI-MD) scheme. This strategic initiative has now been extended until the financial year 2035:36, supported by a substantial financial outlay of approximately 2,700 crore rupees. The move is aimed at transforming India into a global manufacturing hub for high-end medical technology and reducing the nation’s reliance on expensive imports from international markets.
Strategic Extension of the Production Linked Incentive Scheme
In a significant boost to the ‘Make in India’ and ‘Atmanirbhar Bharat’ campaigns, the government has invited new applications under the revised PLI scheme for medical devices. A dedicated online portal is scheduled to become operational within the next 10 days to facilitate the application process for interested manufacturers. This extension reflects the government’s long-term commitment to creating a stable and conducive environment for medical device manufacturing. By providing a clear roadmap until 2035:36, the policy aims to attract both domestic and foreign investments into the sector. The focus remains on building a robust ecosystem where advanced medical tools can be designed, developed, and manufactured within the country, ensuring better accessibility and affordability for the healthcare sector.
Success and Achievements of the Initial Phase
According to reports from the Press Information Bureau, the first phase of the PLI scheme, which commenced in 2020:21, has already yielded impressive results. It has enabled the domestic production of more than 60 types of high-end medical devices that were previously largely imported. These include sophisticated equipment such as 1.5T MRI machines, CT scanners, Linear Accelerators (LINAC), Cath Labs, Mammography units, and X-ray tubes. The total production value recorded under the first phase has already surpassed 16,000 crore rupees. This success has demonstrated the capability of Indian manufacturers to meet global quality standards. Building on this momentum, the government has now introduced PLI 2.0 to address previous limitations and further expand the scope of domestic manufacturing to even more complex technologies.
Categorization of Incentives and Opportunities
The scheme has been structured into four distinct categories to provide targeted support across various segments of the industry. Category TS 1 focuses on consumables and implants, such as surgical items, offering an average incentive of 5 percent. Category TS 2 is dedicated to critical components, which is expected to provide a major boost to the MSME sector with an average incentive of 9 percent. Category TS 3 covers high-end devices that are currently in their early stages of domestic production, also offering a 9 percent incentive. Finally, Category TS 4 targets the assembly stage of high-end devices, providing a 6 percent incentive. Companies participating in these categories will be granted a period of three years to establish their new manufacturing facilities, providing them with ample time to set up operations and begin production.
Addressing Import Dependence and Industry Growth
The Association of Indian Medical Device Industry (AiMeD) has expressed strong support for the government’s decision. Industry experts have pointed out that India’s medical device imports are projected to exceed 1 lakh crore rupees this year, highlighting the urgent need for domestic self-sufficiency. Rajiv Nath, the Forum Coordinator for AiMeD, emphasized that the country faces a choice between remaining dependent on foreign nations for life-saving technology or creating a policy framework that fosters domestic growth. The new phase of the scheme, PLI 2.0, introduces several industry-friendly changes, such as the removal of minimum sales conditions and a reduction in the minimum investment threshold. These adjustments are designed to encourage smaller players and startups to enter the manufacturing space, thereby diversifying the industrial base.
Future Outlook and Technological Advancement
The primary objective of PLI 2.0 is to facilitate the manufacturing of advanced machines that are currently entirely imported, such as 3T MRI scanners, PET-CT systems, ultrasound probes, and high-throughput IVD analyzers. By encouraging the production of these high-tech devices, the government aims to create high-skilled employment opportunities and establish India as a competitive player in the global medical technology market. The application window for the scheme will remain open for an extended period to ensure that all potential investors have the opportunity to participate. This initiative is expected to lower the cost of medical devices in the domestic market, ultimately making healthcare more affordable for the general public while strengthening India’s position as a reliable supplier of medical technology to the world.
Source / स्रोत: Aaj Tak
