The Government of India has initiated a new round of applications for the Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices (PLI-MD), with the program's duration now extended through 2035–36. An approximate outlay of ?2700 Cr is allocated for the scheme. An online portal for application submissions will be activated within the next 10 days. Introduced in 2020-21, the PLI-MD scheme has spurred the domestic manufacture of more than 60 high-end medical devices and components, encompassing X-ray tubes and detectors, 1.5T MRI, LINAC, CT scanners, mammography machines, Cathlab, orthopaedic and cardiac implants, dialyzers, and others. The initiative has yielded production valued at over ?16,000 crore.

Drawing on insights from the initial phase of the initiative, refinements have been implemented concerning eligibility criteria and the incentive claiming process for applicants. Applicants will have a period of 3 years to establish their manufacturing facilities within any of the 4 Target Segments (TS) namely medical consumables, disposables and implants (TS 1), Critical components (TS2), high-end medical devices currently in the early stages of domestic production (TS3), and high-end medical devices presently only assembled within the country (TS4). The incentive rate will taper.

5% for TS1,

TS2 & TS3 saw a 9% increase, and TS4 registered a 6% gain. Within the Consumables and Disposables segment, efforts will center on establishing manufacturing scale and world-class quality. For TS 3 & 4, emphasis will be placed on value chain integration to enhance overall competitiveness and the quality of Made in India devices. The focus on critical component manufacturing under the Scheme is intended to facilitate value chain integration and provide a stimulus to the MSME sector.

The Scheme’s minimum sales threshold for incentive eligibility has been eliminated, and the minimum investment requirement has been reduced. To improve Ease of Doing Business (EoDB), the scheme guidelines have been streamlined and made more investor-friendly. Applicants may now submit an unlimited number of applications across one or more TS, and the application window will remain continuously open for an extended duration.