Govt extends medical devices PLI to 2035–36, relaxes rules to spur investment
Easier eligibility rules and a focus on critical components and advanced equipment are intended to deepen local supply chains and cut reliance on imports.
The Indian government has extended the medical devices Production-Linked Incentive (PLI) scheme through 2035-36 and adjusted eligibility rules to attract more investment. This follow-up to the first phase, launched in FY21, will provide a fresh pool of around ₹2,700 crore for domestic manufacturers of various medical device categories.
The revamped framework, PLI-MD 2.0, eliminates minimum sales thresholds and lowered investment requirements. Manufacturers may apply for the scheme across multiple product categories, including critical components and nascent high-end devices. The incentive rates will gradually decrease over time, averaging around 5% for consumables and implants, 6% for assembled hardware, and 9% for critical parts and advanced diagnostic equipment.
The policy aims to boost local value addition, strengthen the supply chain, and reduce reliance on imports for essential medical devices. Industry representatives welcomed the changes, emphasizing the importance of critical component manufacturing and a supportive regulatory environment in positioning India as a global MedTech manufacturing hub.
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