The Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices, spearheaded by the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers, is a critical initiative to enhance India's self-reliance in the healthcare sector. The scheme's primary objective is to significantly boost domestic manufacturing capabilities and attract substantial investments in the medical device industry. By offering financial incentives to companies operating greenfield projects in India, it aims to reduce import dependence and establish India as a global manufacturing hub for medical technology.
The incentives are structured based on incremental sales achieved over a base year (FY 2019-20) and are subject to stringent threshold investment conditions. This approach ensures that the scheme rewards companies for measurable growth and commitment to scaling their manufacturing operations within the country. The program is implemented and managed by the Industrial Finance Corporation of India (IFCI), which acts as the Project Management Agency (PMA), overseeing the application, appraisal, and disbursement processes.
The scheme focuses on four key target segments to strategically develop crucial areas of medical device manufacturing:
- Cancer care / Radiotherapy medical devices
- Radiology & Imaging medical devices (both ionizing & non-ionizing radiation products) and Nuclear Imaging devices
- Anaesthetics & Cardio-Respiratory medical devices, Oxygen Concentrators, including Catheters of Cardio-Respiratory Category & Renal Care medical devices
- All implants, including implantable electronic devices like Cochlear Implants and Pacemakers.
A key component that constitutes a major part of a finished medical device, such as Rotating Anode Tube, MRI Magnet, or Flat Panel Detector, and has a distinct HS code, is also considered eligible under the corresponding target segment, promoting deeper localization of the supply chain.
