New Delhi: The production linked incentive (PLI) scheme for promoting domestic manufacturing of medical devices (PLI MD), the scheme that has been launched by the Central government to boost domestic manufacturing and attract large investments in the medical devices sector, has seen almost 78 per cent of the committed investment realised so far.
According to information from the ministry of chemicals and fertilisers, the committed investment for the Scheme is Rs. 1,356.94, out of which investment worth Rs. 1,057.47 crore has been realised.
The cumulative sales made by the applicants under the scheme is Rs. 8,039.63 crore, which includes exports worth Rs. 3,844.01 crore, upto September, 2024.
The Union Cabinet approved the proposal for the PLI scheme for medical devices on March 20, 2020 with the objective of the Scheme to boost domestic manufacturing and attract large investments in the medical devices sector.
The production tenure of the scheme is from FY 2020-2021 to FY 2027-28 with total financial outlay of Rs 3,420 crore.
“The scheme provides for financial incentive to selected companies at the rate of 5% on incremental sales of medical devices manufactured in India and covered under the four target segments of the scheme, for a period of five years. 32 applicants have been selected under the scheme,” says Anupriya Patel, the minister of state in the ministry of chemicals and fertilisers.
Under the Scheme the funds allocated in five years upto 2024-25 are Rs. 160 crore and funds utilised in five years are Rs. 57.11 crore upto 2023-2024.
Under the scheme, financial incentive is given to selected companies at the rate of 5% of incremental sales of medical devices manufactured in India and covered under four Target Segments of the scheme i.e. (1) cancer care equipment, (2) imaging devices, (3) critical care devices, and (4) body implants.
The Minister has said that the medical devices market is fourth largest in the Asian market after Japan, China, and South Korea and among top twenty global medical devices markets in the world, growing at 15 per cent compound annual growth rate (CAGR).
