The Production-Linked Incentive (PLI) initiative aimed at enhancing domestic production of medical devices, launched by the central administration to stimulate local manufacturing and attract significant investments in this sector, has achieved nearly 78% of its pledged investment thus far.
The Ministry of Chemicals and Fertilisers reports that of the Rs. 1,356.94 crore pledged for the scheme, Rs. 1,057.47 crore has been actualized.
By September 2024, cumulative sales from program participants reached Rs. 8,039.63 crore, including Rs. 3,844.01 crore from exports.
On March 20, 2020, the Union Cabinet ratified the PLI scheme for medical devices intending to encourage domestic manufacturing and attract substantial investments in this field. This scheme spans FY 2020-2021 to FY 2027-28, with a total financial allocation of Rs. 3,420 crore.
“Selected companies receive a 5% financial incentive on the incremental sales of medical devices produced in India across four targeted segments for five years. 32 applicants have been chosen under this program,” stated Anupriya Patel, the Minister of State in the Ministry of Chemicals and Fertilisers.
For the scheme’s duration until 2024-25, funds allocated are Rs. 160 crore, and Rs. 57.11 crore has been utilized by 2023-2024.
Incentives under the scheme support companies based on 5% of increased sales of medical devices manufactured within India and encompass four targeted categories: (1) cancer care tools, (2) imaging apparatus, (3) critical care devices, and (4) body implants.
The Minister mentioned that the medical devices market stands as the fourth largest in Asia, following Japan, China, and South Korea, ranking within the top twenty global markets, while growing at a 15% compound annual growth rate (CAGR).