The Government of India has invited fresh applications under the Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices (PLI-MD), which has now been extended up to 2035–36. Approximately INR 2700 Cr outlay available under the Scheme will be utilised for the purpose. The applicants can submit applications through an online portal, which will be operational in the next 10 days.

Launched in 2020-21, the PLI-MD scheme has led to domestic manufacturing of over 60 high-end medical devices and components, including X-ray tubes and detectors, 1.5T MRI, LINAC, CT scanners, mammography machines, Cathlab, orthopaedic and cardiac implants, dialyzers etc., to date. The scheme has resulted in production valued at over INR 16,000 crore.

On the basis of learnings in the first phase of the Scheme, a number of simplifications have been done in the eligibility conditions as well as procedure for claiming incentive by the applicants.

The applicants shall be allowed 3 years for setting up their manufacturing facilities in any of the 4 Target Segments (TS) viz. medical consumables, disposables and implants (TS 1), Critical components (TS2), high-end medical devices which are presently at a nascent stage of domestic manufacturing (TS3), and high-end medical devices that are presently only assembled in the country (TS4). The tapering incentive rate would be averaging ~5 percent for TS1, ~9 percent for TS2 & TS3, and 6 percent for TS4. In the Consumables and Disposables segment, the focus shall be on creating manufacturing scale and world class quality. In TS3 & 4, priority shall be given for value chain integration, so that there is an overall increase in competitiveness and quality of Made in India devices. The focus on critical component manufacturing under the Scheme, would help achieve value chain integration and also give a boost to the MSME sector.

PLI-MD 2.0 aims to fulfil the vision of Atmanirbhar Bharat and Make in India, develop indigenous supply chains, attract investment, generate employment, improve quality of Made in India devices, reduce price of medical devices, and enhance India's global competitiveness in high-end medical technologies.