PLI Scheme for Medical Devices Sees INR 1,057 Cr Investment Realised

The scheme, launched by the Central government, has drawn significant progress in attracting investments to the Indian medical devices sector.

The Production Linked Incentive (PLI) scheme for medical devices, aimed at boosting domestic manufacturing, has realized investments worth INR 1,057.47 Cr, almost 78% of the total committed amount. 

The scheme, launched by the Central government, has drawn significant progress in attracting investments to the Indian medical devices sector.

According to the Ministry of Chemicals and Fertilizers, the committed investment for the PLI scheme stands at INR 1,356.94 Cr. Of this, INR 1,057.47 Cr has already been realized, as of September 2024. 

In addition to this, the cumulative sales from the companies under the scheme have reached INR 8,039.63 Cr, with exports accounting for INR 3,844.01 Cr.

The PLI scheme was approved by the Union Cabinet on March 20, 2020, with a focus on promoting domestic manufacturing and attracting large investments in the medical device industry. The scheme’s financial outlay is INR 3,420 Cr, and the production tenure extends from FY 2020-2021 to FY 2027-28.

Scheme Structure

Anupriya Patel, Minister of State in the Ministry of Chemicals and Fertilisers, explained the structure of the scheme, stating, "The scheme provides for financial incentives to selected companies at a rate of 5% on incremental sales of medical devices manufactured in India. These sales must fall within the four target segments of the scheme, and the incentives will be provided for a period of five years."

The four target segments covered by the scheme include cancer care equipment, imaging devices, critical care devices, and body implants. 

To date, 32 applicants have been selected under the scheme, and the government has allocated INR160 Cr in funds for the five-year period up to 2024-25. However, the funds utilised so far stand at INR 57.11 Cr up to FY 2023-24.

"The medical devices market is the fourth largest in the Asian market, following Japan, China, and South Korea. It ranks among the top 20 global markets, with a compound annual growth rate (CAGR) of 15%," Patel added.

The PLI scheme has already led to increased production and exports of medical devices from India. The scheme has the potential to boost India’s competitiveness in the global medical device market by supporting local manufacturers and helping them scale up production. 

By targeting crucial sectors like cancer care and critical care, the government aims to enhance India’s capacity to meet domestic healthcare demands and contribute to the global supply chain.