The Medical Devices Industry in India is the 4th largest in Asia and among the top 30 in the world. It is a highly capital-intensive industry and boasts immense potential in terms of skilled manpower and research & development.
Initiatives like Make in India and Atmanirbhar Bharat Abhiyaan have given a much-needed thrust to the manufacturing of medical devices in the country. To further promote domestic manufacturing and develop related infrastructure, the Government of India has approved the following schemes:
Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices
The Production Linked Incentive (PLI) scheme for promoting domestic manufacturing of medical devices has been notified to boost domestic manufacturing and attract large investments in the industry. The scheme has a total outlay of about INR 3,420 Cr.
Under the scheme, 5% incentive will be provided on incremental sales (over Base Year: FY 2019-20) of medical devices manufactured in India. The incentives under the scheme will be offered for a period of 5 years from FY 2020-21 to FY 2025-26. The applicant companies will be required to meet minimum thresholds of investment and production and meet the eligibility criteria to receive incentives under the scheme.
The Scheme for Promotion of Medical Device Parks has been notified to develop common infrastructure facilities (CIF) which in turn will reduce production cost of medical devices manufactured in the country. The scheme has a total outlay of about INR 400 Cr.
Under the scheme, financial assistance will be provided for the creation of CIFs in four medical device parks selected under the scheme. The assistance will be 90% of the project cost in northeastern states and hilly states while it will be 70% in other states. A medical device park project suggested by a state and selected under the scheme will be implemented by a State Implementation Agency (SIA) and will receive a maximum assistance of INR 100 cr. The scheme will be valid for a period of 5 years from FY 2020-21 to FY 2024-25.
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