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Production Linked Incentive (PLI) Scheme for Pharmaceuticals Medical Devices

Major achievements in PLI being implemented:

With an objective to boost domestic manufacturing, attract large investment in Medical Device Sector, the Department of Pharmaceuticals had launched a Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Medical Devices to ensure a level playing field for the domestic manufacturers of medical devices with a total financial outlay of Rs.3,420 cr. for the period 2020-21 to 2027-28.

Response of Industry Leaders:

In the PLI Scheme for Medical Devices, the major successful players/ participants include M/s. Siemens Healthcare Private Limited, M/s. Wipro GE healthcare Private Limited, M/s BPL Medical Technologies Private limited, M/s Nipro India Corporation Private Limited, M/s. Sahajanand Medical Technologies Private Limited, M/s. Integris Health Private Limited, M/s. Poly Medicure Limited, etc.


The Medical Device sector suffers from a cost of manufacturing disability of around 12% to 15%, vis-a-vis competing economies, among other things, on account of lack of adequate infrastructure, domestic supply chain and logistics, high cost of finance, inadequate availability of quality power, limited design capabilities and low focus on R&D and skill development, etc. There is, thus, a need for a mechanism to compensate for the manufacturing disability.

The Scheme aim to boost domestic manufacturing by attracting large investments in medical device sector. Under the Scheme, incentive @ 5% of incremental sales over base year 2019-20 will be provided on the segments of medical devices identified under the Scheme.

The expenditure to be incurred for the above schemes will be for the next five years i.e. from 2020- 21 to 2024-25


The target for PLI Scheme is to provide assistance to about 25-30 manufacturers under the following categories of medical devices: -

a. Cancer care/Radiotherapy medical devices,

b. Radiology & Imaging medical devices (both ionizing & non-ionizing radiation products) and Nuclear Imaging Devices,

c. Anesthetics & Cardio-Respiratory medical devices including Catheters of Cardio Respiratory Category & Renal Care Medical Devices and

d. AII Implants including implantable electronic devices like Cochlear Implants and Pacemakers.

Expected outcomes in terms of increase in investment, production, exports and employment:

In total 28 applications have been received spread across the 4 Target Segments for the PLI schemes for Medical Devices from all over the country.Out of these, 14 applications have been approved by the Government, with a total Committed Investment of Rs.873.93 crore; Maximum Incentive proposed for disbursement: Rs.1,694 crore and Expected Employment Generation of about 4212.

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