November 11, 2206: India’s push to become a global manufacturing hub for medical technology has received a fresh boost, with the Centre extending its Production Linked Incentive (PLI) scheme for medical devices until 2035-36 and reopening the application process for manufacturers. Around Rs 2,700 crore remains available under the programme, which is now being revamped to encourage broader participation and accelerate domestic production.
The Ministry of Chemicals and Fertilizers announced that fresh applications will be invited under the updated framework, with the online portal expected to go live within the next 10 days. The revised version of the initiative, branded as Production Linked Incentive MD 2.0, introduces several changes aimed at making the scheme more accessible to manufacturers.
8 Takeaways From India’s Expanded Medical Devices PLI
Among the most significant reforms is the removal of the minimum sales requirement that companies previously had to meet in order to qualify for PLI scheme incentives. The government has also eased investment criteria, lowering the entry barrier for firms seeking to establish manufacturing operations in the sector.
Manufacturers selected under the scheme will be given three years to set up production facilities across four focus areas, including medical consumables, disposables and implants, critical components, and advanced medical devices.
Incentive rates under the updated programme vary by category. Medical consumables, disposables and implants will receive support averaging around 5 per cent, while critical components and certain advanced devices may qualify for incentives of about 9 per cent. Products that are currently assembled in India are expected to receive support of roughly 6 per cent.
The revised PLI scheme framework also allows companies to submit multiple applications across different product categories, while extending the application window to give investors more time to participate.
Officials believe a stronger emphasis on manufacturing critical components will help reduce dependence on imports, strengthen domestic supply networks, and create new opportunities for micro, small and medium enterprises.
Since its launch in 2020-21, the medical devices PLI scheme has helped support the local production of more than 60 high value medical technologies and components. These include MRI systems, CT scanners, X ray tubes, mammography equipment, cardiac implants and dialyzers. The government says the initiative has generated production worth over Rs 16,000 crore so far.
With the latest expansion, policymakers are now targeting products that are currently not manufactured domestically, including advanced technologies such as 3T MRI machines, PET CT scanners and ultrasound probes.
The government expects the revamped scheme to attract fresh investments, create jobs, strengthen India’s position in high end medical technology manufacturing, and eventually improve affordability and access to sophisticated healthcare equipment across the country.
