PLI Scheme for Promotion of Domestic Manufacturing of Medical Devices

Background and Context

• India imports a significant share of its high-end medical devices, which makes healthcare costs dependent on global supply chains.
• To build self-reliance (Atmanirbharta) in healthcare, reduce import dependence, and make India a hub for medical device manufacturing, the government launched this PLI scheme in 2020.

Quick Facts

• Type: Central Sector Scheme (funded entirely by the Union Government).
• Purpose: To provide a level playing field for domestic manufacturers and promote large-scale investment in the medical devices sector.
• Applicant: Any company registered in India, provided it commits to investment in a Greenfield project (new setup, not expansion of an existing one).
• Tenure: FY 2020–21 to 2027–28.

Objectives

• Boost domestic manufacturing of medical devices.
• Attract large-scale investment into this sector.
• Reduce reliance on costly imports and ensure affordability and accessibility of advanced medical equipment in India.

Eligible Investment

Expenditure under the following heads is counted as eligible for benefits:

1. Setting up new plants, machinery, and equipment
2. Research and Development (R&D) activities
3. Transfer of Technology (ToT) agreements
4. Construction of buildings related to manufacturing

Eligible Products – Four Target Segments

1. Cancer care / Radiotherapy medical devices
2. Radiology & Imaging devices, including Nuclear Imaging devices
3. Anaesthetics & Cardio-Respiratory medical devices
4. All Implants, including implantable electronic devices

(This ensures coverage of critical and high-value medical devices that India largely imports today.)

Financial Incentives

• Basis: Incentive is given on incremental sales compared to the base year (2019–20).
• Tenure: Incentives available for a maximum of 5 years.
• Rate of Incentive: Flat 5% of incremental sales.

Why is this Important?

• Helps India develop domestic capacity in high-end medical devices.
• Encourages innovation and technology transfer in the healthcare sector.
• Reduces dependency on imports and ensures affordable healthcare access for the Indian population.
• Contributes to the larger Atmanirbhar Bharat Abhiyan vision in healthcare.

✅ In summary: The PLI Scheme for Medical Devices provides financial incentives to companies setting up new manufacturing units in four critical device segments. It supports investment in R&D, technology transfer, and infrastructure, while rewarding incremental sales with a 5% incentive. This is a step towards making India a self-reliant and globally competitive hub for medical devices.