PLI Scheme for Medical Devices Extended Up To 2035–36

Key Highlights:

• The Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices (PLI-MD) has been extended until 2035-36.
• An outlay of approximately ₹2700 crore is available for the extended scheme, with fresh applications invited.
• Launched in 2020-21, the scheme has already led to domestic manufacturing of over 60 high-end medical devices.
• Production under the scheme has achieved a value exceeding ₹16,000 crore to date.
• Key simplifications include discontinuing the minimum sales threshold and trimming minimum investment requirements.
• The scheme now features four Target Segments (TS) with varying tapering incentive rates, allowing 3 years for facility setup.

Detailed Insights:

• The extension aims to further boost indigenous manufacturing, reduce import dependence, and enhance India's global competitiveness in medical technology.
• Simplifications in eligibility conditions and claiming procedures are based on learnings from the scheme's first phase, promoting ease of doing business.
• The four Target Segments focus on medical consumables/implants, critical components, nascent high-end devices, and assembled high-end devices.
• Priority is given to value chain integration, especially for high-end devices and critical component manufacturing, to support the MSME sector.
• The scheme seeks to attract investment, generate employment, improve quality, and reduce prices of 'Made in India' medical devices.
• It aligns with the vision of Atmanirbhar Bharat and Make in India, promoting deep manufacturing of advanced medical equipment like 3T MRI and PET-CT.

Key Concepts Involved:

• Production Linked Incentive (PLI) Scheme: A government initiative offering incentives on incremental sales to manufacturers for products made in India.
• Atmanirbhar Bharat: A vision for a self-reliant India, promoting domestic production and reducing reliance on imports across various sectors.
• Make in India: A government program to encourage companies to manufacture their products in India and incentivize dedicated investments.