Medical devices sector secures Rs. 958.72 crore in investments

India’s Production Linked Incentive (PLI) scheme has stimulated significant investments in the pharmaceutical sector, aimed at strengthening domestic manufacturing and reducing import dependence, data from the Department of Pharmaceuticals (DoP) indicated.

The sector attracted Rs. 29,268 crore to expand production capacities and diversify the pharmaceutical base, the government said. In May, investments totalled Rs. 940 crore, marking a 3.32% increase from April 2024’s Rs. 28,328 crore. Production surged by 12.3% to Rs. 1,61,209 crore in May, up from Rs. 1,43,553 crore in the previous month.

Employment under the PLI for pharmaceuticals grew by 20%, reaching 71,763 individuals compared to April’s 59,768, with 261 manufacturing locations commissioned by May 2024, the government data showed. The bulk drugs segment saw investment rise to Rs. 3,737.33 crore from April’s Rs. 3,715 crore. Production increased by 10.3%, reaching Rs. 1,067.45 crore in May, with employment growing by 19% to 3,565 jobs compared to 2,994 in April. The segment now boasts 31 commissioned projects.

Simultaneously, the Medical Devices sector secured Rs. 958.72 crore in investments, enhancing production capacity to Rs. 5,986.56 crore. The establishment of 17 new manufacturing facilities turned the sector into a hub for innovation and technology, employing 5,396 people.

“The success of the PLI scheme extends beyond financial investments, with strategic implications for India’s pharmaceutical industry,” noted Dr. Vivek Desai, Founder & Managing Director of HOSMAC. “Reducing reliance on medical technology imports and boosting domestic production is vital as we head towards the Union Budget 2024-25,” he said.

Launched in 2021 with a financial outlay of Rs. 15,000 crore, the PLI scheme aims to provide incentives over six years to 55 selected applicants, including 20 Micro, Small, and Medium Enterprises (MSMEs). So far, 278 applications have been received, with 55 approved. In the bulk drugs segment, 48 out of 249 applications have received approval. Business Today