The Indian government has extended its production-linked incentive (PLI) scheme for medical devices until the fiscal year 2035-36. The Department of Pharmaceuticals announced this on November 10. They are inviting new applications under the program, which has a budget of about ₹2,700 crore.
Key Details
The updated scheme, called PLI-MD 2.0, includes important changes to eligibility and claim processes. The government has removed the minimum sales threshold needed to claim cash payouts. They have also lowered the minimum investment required for manufacturers. An online application portal will launch within 10 days, allowing for an open-ended submission period.
The PLI scheme now covers four main areas: medical consumables, critical components, high-end medical equipment, and devices assembled in India. The financial incentives will vary. They will average around 5% for consumables and implants, 6% for assembled hardware, and 9% for critical parts and complex diagnostic machines. The government aims to boost local value addition and expand supplier networks. They are particularly focusing on critical component manufacturing to cut down on imports.
Background
The official statement stressed the need to shift domestic production from basic packaging to advanced engineering. There is a strong emphasis on high-quality manufacturing. This initiative is expected to support the micro, small, and medium enterprises (MSME) sector. It will also promote the production of advanced medical equipment like 3-Tesla MRI scanners and PET-CT machines.
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The extension of the PLI scheme is likely to help the medical devices sector. It may encourage domestic manufacturing and reduce reliance on imports. This could lead to more investment in healthcare infrastructure and technology.
Investors will be looking for the launch of the online application portal. They will also watch for updates on the first applications received under the updated scheme.
Based on reporting by: livemint.com, moneycontrol.com