India’s Medtech Sector Gets a Major Boost under the PLI Scheme

22 Greenfield medTech manufacturing projects have been commissioned, with production underway across several high-end device categories.

India’s medtech manufacturing ecosystem has received a significant boost under the Production Linked Incentive (PLI) Scheme for medical devices.

As per reports, 22 Greenfield MedTech manufacturing projects have been commissioned with production underway across several high-end device categories.

These commissioned facilities are expected to produce 55 types of medical devices, including linear accelerators, MRI and CT scanners, C-arm X-ray systems, MRI coils, mammography equipment, and ultrasound machines.

The expansion of domestic capabilities is aimed at reducing India’s long-standing reliance on imported medical technologies.

Further, the commissioned projects have collectively recorded INR 12,344.37 crore in cumulative eligible sales, which includes INR 5,869.36 crore worth of exports.

The scheme also laid a budgeted outlay of INR 3,420 crore, incentivizing domestic production between FY 2022-23 and FY 2026-27.

The flagship scheme, introduced in 2021 with an outlay of INR 1.97 lakh Core aims to boost domestic manufacturing and reduce import dependency.

Apart from medtech, the government is also advancing pharmaceuticals under the PLI scheme.

The PLI scheme for Bulk Drugs aims to reduce the risk of supply disruptions for essential drug ingredients by encouraging domestic production of Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs).

With a budgetary outlay of INR6,940 crore, the scheme has recorded INR 4,763.34 crore in investments over three and a half years of production, already surpassing the initially committed INR4,329.95 crore planned over six years for greenfield projects.

So far, production capacities have been created for 26 KSMs/DIs/APIs.

Further, the Cumulative sales reported under the scheme are INR 2,315.44 crore, including INR 508.12 crore in exports.

Moreover, the PLI Scheme for Pharmaceuticals, with a budgetary outlay of INR 15,000 crore, supports the manufacturing of high-value pharmaceutical products such as biopharmaceuticals, complex generics, patented drugs, or near-patent-expiry drugs, anti-cancer formulations, and additional APIs.

Currently, 726 APIs/KSMs/DIs are being manufactured, including 191 produced domestically for the first time under the scheme.

Cumulative domestic sales from these products stand at INR 26,123 crore, which is expected to enhance the import substitution and supply-chain stability.

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