The Indian government has decided to extend the PLI Scheme for Promotion of Domestic Manufacturing of Medical Devices till 2035-36, with around ₹2,700 crore budget available for the scheme. This move is expected to boost the domestic manufacturing sector of medical devices by way of attracting new investments and manufacturing of high-end technology in this sector within the country.
The Department of Pharmaceuticals has also announced new applications from manufacturers with relaxed criteria for investors.
Government Relaxes Eligibility Rules for Medical Device Manufacturers
In the new PLI scheme, the government has eliminated the minimum sales criteria that were necessary for manufacturers to be eligible for any incentives.
The government has also lowered the minimum investment threshold for easier participation by businesses.
Manufacturers have been allotted a maximum of three years to set up their manufacturing facilities in the four target segments under the scheme.
The new guidelines also facilitate the submission of multiple applications in one or more segments by companies.
It is anticipated that the new guidelines will make the scheme easily available to both existing and emerging players in the business of medical equipment.
Four Key Areas Covered Under the PLI Scheme
This extended program covers the following four main sectors in the medical devices industry:
Medical Consumables, Disposables and Implants: Development of domestic production of critical healthcare items and medical implants.
Critical Components: Encouragement of local production of critical components for medical equipment.
High End Medical Devices: Promotion of state-of-the-art equipment where domestic production is still in its initial stages.
Medical Devices that are Assembled in India: Encouragement of manufacturers to produce complete medical devices domestically.
There is special emphasis by the government on the production of critical components due to the following reasons:
India Targets Domestic Production of Advanced Medical Equipment
The Indian medical devices industry is making good progress in the production of sophisticated health care equipment. As per the Department of Pharmaceuticals, through the current PLI Scheme, more than 60 sophisticated medical devices/components are being manufactured domestically.
The list includes:
- MRI machines & X-ray tubes
- CT Scanners
- Mammography machines
- Linear Accelerators (LINAC)
- Cardiac and Orthopedic Implants
- Dialysis machines
- CathLab Machines
More than ₹16,000 Crore worth of production is expected through this Scheme.
The new scheme will also motivate domestic manufacturing of advanced technology products like 3T MRI machines, PET-CT Scanners, Ultrasound probes and consoles, and high-throughput In-Vitro Diagnostic (IVD) analyzers.
What Does the Extended Scheme Mean for Indian Medical Equipment Manufacturers?
Extended PLI policy would also generate new business opportunities for Indian manufacturers of medical equipment, suppliers of components, and health technologies firms.
The ease of investment criteria and the extended implementation period may induce a greater number of companies to locate production in India.
This policy may help in generating jobs, fostering innovation, and improving local supply chains.
As far as hospitals, diagnostic labs, and other health organizations are concerned, an increase in domestic production would mean better access to locally manufactured medical devices. Of course, quality and safety considerations will stay crucial.
Conclusion
The extension of the ₹2,700 crore medical devices PLI scheme up to 2035-36 is significant in terms of the Indian medical manufacturing industry.
Through simplification of eligibility criteria, inviting new applications, and emphasizing advanced medical devices, the government intends to promote investments and production in India.
The success of the new scheme depends on the participation of manufacturers and the production of quality medical devices in India.
