PLI Scheme for Medical Devices - Process, Fees & Benefits

The Production Linked Incentive (PLI) Scheme for Medical Devices is a policy to make India a manufacturing destination for medical devices. Started under the government’s Made in India initiative, the PLI Scheme for Medical Devices Manufacturing aims at reducing the import dependency in key and high value Medical Devices and generate increased activity and innovations in the independent Medical Devices industry. The PLI Scheme for Medical Devices has calibrated incentives depending upon the investment and incremental sales to foster high value, encourage the medical devices value chain and provide employment in India. Being primarily centered on manufacturing of segments such as cancer diagnosis and treatment, imaging diagnostic, orthopedic implants and more, the PLI Scheme for Medical Devices Manufacturing enhances the nation’s capacity for healthcare technology requirement within the domestic market as well as export.

The PLI Scheme for Medical Devices Manufacturing offers numerous advantages to manufacturers and the medical devices sector in India, including:

• Economic Growth: The PLI Scheme for Medical Devices Manufacturing helps to positively influence the medical devices manufacturing business and leads to enhanced development and better health amongst the populace.
• Infrastructure Development: The PLI Scheme for Medical Devices promotes development of the manufacturing ecosystem, contributing to better infrastructure, such as industrial parks, logistics and supply chain management.
• Promote Domestic Manufacturing: The PLI Scheme for Medical Devices Manufacturing enables more production by incentivization and weakens dependence on imports for medical devices.
• Attract Investments: The PLI Scheme for Medical Devices improves the state of the medical devices industry, attracting FDI from local and international investors.
• Job Opportunities: The expansion of manufacturing facilities under the PLI Scheme for Medical Devices Manufacturing creates ample employment in the medical devices and accessories industries.

To qualify for financial incentives under the PLI Scheme for Medical Devices Manufacturing, companies must meet the following eligibility criteria:

• The PLI Scheme for Medical Devices will be allowed only to companies that operate within the identified target segments for manufacturing of goods.
• Each of the applicants must reach fixed points of investment and the increased sales of the manufactured products included in the target segments than the Base Year of FY 2019-20.
• The application of each incentive requires that specific threshold conditions are met by the applicant diligently. They are clearly defined in the scheme documents of the PLI Scheme for Medical Devices Manufacturing though may be too protracted for brief presentation here.
• The operating conditions for eligibility for the PLI Scheme for Medical Devices will not affect eligibility for other central government schemes for the companies, thus enabling all the schemes to be available in parallel.

Eligibility Threshold Criteria

An applicant is required to meet all the threshold conditions to be eligible for disbursement of the PLI Scheme for Medical Devices Manufacturing and the eligibility threshold criteria is tabulated below.