The Government of India has invited fresh applications under the Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices (PLI-MD), which has been extended until 2035–36.
An outlay of approximately INR 2,700 crore is available under the scheme for the fresh round of applications. The Department of Pharmaceuticals will make an online application portal operational within the next 10 days.
Launched in 2020–21, the PLI-MD scheme has supported the domestic manufacturing of more than 60 high-end medical devices and components to date. These include X-ray tubes and detectors, 1.5T MRI scanners, linear accelerators (LINACs), CT scanners, mammography machines, catheterisation laboratories (cath labs), orthopaedic and cardiac implants, and dialysers.
The scheme has resulted in cumulative production worth more than INR 16,000 crore, according to the government.
Simplified eligibility and incentive conditions
Drawing on the experience gained during the first phase, the government has introduced several simplifications to the scheme’s eligibility criteria and incentive-claim procedures.
Applicants will be allowed three years to establish manufacturing facilities across any of the four target segments:
- Target Segment 1 (TS1): Medical consumables, disposables and implants.
- Target Segment 2 (TS2): Critical components.
- Target Segment 3 (TS3): High-end medical devices where domestic manufacturing is currently at a nascent stage.
- Target Segment 4 (TS4): High-end medical devices that are currently only assembled in India.
The tapering incentive rates will average approximately 5% for TS1, 9% for TS2 and TS3, and 6% for TS4.
For medical consumables and disposables, the scheme will focus on building manufacturing scale and ensuring world-class quality. In TS3 and TS4, priority will be given to value-chain integration to improve the competitiveness and quality of Made in India devices.
The emphasis on critical component manufacturing is also expected to support greater value-chain integration and provide a boost to the micro, small and medium enterprises (MSME) sector.
Reduced investment requirements and greater flexibility
The revised scheme has removed the minimum sales threshold requirement for claiming incentives and reduced the minimum investment requirement.
As part of efforts to improve ease of doing business (EoDB), the guidelines have also been simplified to make the scheme more investor-friendly.
Applicants will be permitted to submit multiple applications across one or more target segments. The application window will remain continuously open for an extended period, providing greater flexibility to prospective investors.
Focus on high-end medical equipment manufacturing
PLI-MD 2.0 aims to advance the government’s vision of Atmanirbhar Bharat and Make in India by strengthening indigenous supply chains, attracting investments, generating employment, improving the quality of domestically manufactured medical devices, reducing their prices and enhancing India’s global competitiveness in high-end medical technologies.
The scheme seeks to promote deeper domestic manufacturing capabilities, particularly in high-end medical equipment that is not currently manufactured in the country. These include 3T MRI scanners, PET-CT systems, ultrasound probes and consoles, and high-throughput in vitro diagnostic (IVD) analysers.
