Government Extends Medical Devices PLI Scheme Till 2035-36, Opens Fresh Applications for INR 2,700 Cr

The revised guidelines have eased eligibility and investment conditions to attract more manufacturers and expand India's production capacity for high-end medical technologies.

The Central Government has extended the Production Linked Incentive (PLI) scheme for medical devices until 2035-36 and invited fresh applications, with approximately INR 2,700 Cr available to support domestic manufacturing.

The revised guidelines have eased eligibility and investment conditions to attract more manufacturers and expand India's production capacity for high-end medical technologies.

Launched in 2020-21, the medical devices PLI scheme aims to reduce dependence on imports, encourage domestic investment and strengthen India's medical device manufacturing ecosystem.

According to the Ministry of Chemicals and Fertilizers, the scheme has supported the domestic production of more than 60 high-end medical devices and components, with manufacturing output valued at over INR 16,000 Cr.

Under the revised framework, the government has discontinued the minimum sales threshold previously required to claim incentives and reduced the minimum investment requirement.

Manufacturers will also be permitted to submit multiple applications across different target segments, while the application window will remain open for an extended period.

The scheme covers four segments: medical consumables, disposables and implants; critical components; and high-end medical devices, including equipment currently assembled in India. Manufacturers will have three years to establish their production facilities.

The incentive structure provides average incentives of around 5% for medical consumables, disposables and implants, approximately 9% for critical components and certain high-end medical devices, and 6% for devices currently assembled in India.

The online application portal is expected to become operational within the next 10 days.

The revised programme, referred to as PLI-MD 2.0, places particular emphasis on manufacturing advanced medical equipment and components that are not currently produced domestically.

These include 3T MRI machines, PET-CT scanners and ultrasound probes. The government expects greater domestic production of critical components to strengthen supply chains and create opportunities for micro, small and medium enterprises (MSMEs).

The scheme has previously supported the domestic manufacturing of equipment such as MRI machines, CT scanners, X-ray tubes, mammography machines, cardiac implants and dialysers.

By extending the medical devices PLI scheme and relaxing entry conditions, the government aims to improve the competitiveness of India's medical technology industry while building domestic capabilities in advanced diagnostic and therapeutic equipment.

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