Medical device sales hit Rs 8039.63 crore under PLI scheme

Medical device manufacturers have recorded sales of Rs 8039.63 crore under the Production Linked Incentive Scheme up to September 2024. It includes exports worth Rs 3,844.01 crore.

Production Linked Incentive (PLI) scheme for promoting domestic manufacturing of Medical Devices was approved by the government of India on March 20,.2020.

The guidelines for implementation of the scheme were issued on October 29. 2020. The scheme applies only to greenfield projects and intends to boost domestic manufacturing and attract large investments in the medical devices sector.

The period of the scheme is from the financial year 2020-21 to the financial year 2027-28 with a total financial outlay of Rs. 3,420 crore.

Under the scheme, financial incentive is given to selected companies at the rate of 5% of incremental sales of medical devices manufactured in India and covered under the target segments of the scheme, for five years.

The scheme was aimed to address the challenges in manufacturing medical devices in India vis-à-vis other major manufacturing economies. The domestic medical devices industry faces challenges related to the considerable cost of manufacturing disability, among other things, due to lack of adequate infrastructure, domestic supply chain and logistics, high cost of finance, limited design capabilities, and low investments in R&D and skill development.

The products under the scheme have been categorized under the following four categories.

I. Cancer care/ Radiotherapy medical devices

II. Radiology & imaging medical devices (both ionizing & non -ionizing radiation

products) and nuclear imaging devices

III. Anaesthetics & cardio-respiratory medical devices including catheters of the cardiorespiratory category & renal care medical devices

IV. All implants including implantable electronic devices

Industrial Finance Corporation of India (IFCI) Ltd. is the scheme’s Project Management Agency (PMA).
MB Bureau