Medical device manufacturers in India have achieved a significant milestone, recording sales of ₹8,039.63 crore under the Production Linked Incentive (PLI) Scheme by September 2024. This includes exports worth ₹3,844.01 crore, signaling a major boost to domestic production and global competitiveness.

Key Highlights

1. Overview of the PLI Scheme:

2. Approved on March 20, 2020, the PLI scheme is designed to promote domestic manufacturing of medical devices.

3. It applies exclusively to greenfield projects, ensuring fresh investments in India’s medical device sector.

  2.  Financial Outlay and Incentives:

• The scheme spans from FY 2020-21 to FY 2027-28, with a financial outlay of ₹3,420 crore.

• Companies receive a financial incentive of 5% on incremental sales of medical devices manufactured in India under the scheme's targeted segments.

  3.  Target Categories of Products:

• Cancer care and radiotherapy medical devices.

• Radiology and imaging devices, including nuclear imaging products.

• Anesthetics and cardio-respiratory devices, such as catheters and renal care equipment.

• All types of implants, including implantable electronic devices.

  4.  Addressing Manufacturing Challenges:

• The PLI scheme tackles key challenges such as high manufacturing costs, lack of infrastructure, limited R&D investment, and inadequate domestic supply chains.

• It aims to align India’s medical device manufacturing standards with global economies and attract significant investments.

  5.  Impact on Exports and Employment

• The scheme has enhanced India's presence in the global medical device market, contributing significantly to exports.

• It is also driving job creation and technological advancements in the sector.

Statements and Outlook

• Government of India:

“The PLI scheme for medical devices is pivotal in reducing India’s reliance on imports and strengthening its position as a global manufacturing hub.”

• Industry Experts:

“The success of the PLI scheme reflects India's potential to emerge as a leader in the medical device sector, offering high-quality, affordable products both domestically and internationally.”The PLI scheme has set a strong foundation for India’s medical device industry, boosting sales, exports, and domestic manufacturing capabilities. By addressing critical infrastructure gaps and incentivizing innovation, the scheme is a game-changer for India’s healthcare sector, fostering self-reliance and global competitiveness.