Indian Economy News

PLI Scheme for Medical Devices extended up to FY36; Fresh applications invited

The Government has invited fresh applications under the Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices (PLI-MD), which has been extended up to FY36. An outlay of approximately Rs. 2,700 crore (US$ 285.08 million) is available under the scheme. Applications can be submitted through an online portal, which will be operational within the next 10 days. Launched in FY21, the scheme has led to the domestic manufacturing of over 60 high-end medical devices and components. These include X-ray tubes and detectors, 1.5T MRI, LINAC, CT scanners, mammography machines, cath labs, orthopaedic and cardiac implants and dialysers. The scheme has resulted in production valued at over Rs. 16,000 crore (US$ 1.94 billion).

Applicants will get three years to set up manufacturing facilities in any of four target segments: medical consumables, disposables and implants; critical components; high-end medical devices at a nascent stage of domestic manufacturing; and high-end devices currently only assembled in India. Tapering incentive rates will average around 5% for the first segment, around 9% for the second and third, and 6% for the fourth. To enhance Ease of Doing Business (EoDB), the minimum sales threshold to claim incentives has been discontinued and the minimum investment requirement has been trimmed. Applicants are also free to submit any number of applications in one or more segments. The scheme aims to promote deep manufacturing and the production of high-end equipment such as 3T MRI, PET-CT and high-throughput in-vitro diagnostic (IVD) analysers, which are currently not manufactured in India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.