The Union government has extended the Production Linked Incentive scheme for medical devices to 2035-36, with about ₹2,700 crore allocated for the next phase and a new application window expected to open within 10 days. The move is intended to expand domestic manufacturing of advanced equipment and reduce India’s dependence on imports.
The announcement invites fresh applications under PLI-MD 2.0, according to a report citing information from the Press Information Bureau. Applicants will be able to submit proposals through an online portal once it opens. The government has also removed the minimum sales requirement, lowered the minimum investment threshold and allowed companies to apply in one or more categories.
The extended scheme follows the first phase of the medical-device PLI programme, which began in 2020-21. The report said the first phase has enabled the manufacture of more than 60 high-end medical devices, including 1.5T MRI machines, CT scanners, linear accelerators, cath labs, mammography equipment and X-ray tubes. It also reported production worth more than ₹16,000 crore under the programme so far.
PLI 2.0 will cover four broad categories. The first includes consumables and implants, with an average incentive of 5 percent. The second covers critical components, where the average incentive is 9 percent and the policy is expected to create opportunities for smaller and medium-sized manufacturers. The third category focuses on high-end devices that are currently manufactured in limited quantities in India and carries an average incentive of 9 percent. The fourth covers devices that are currently assembled in the country, with an average incentive of 6 percent.
Companies will receive three years to establish new factories in the selected categories. The application window is expected to remain open for an extended period, allowing manufacturers and investors more time to submit proposals. The changes are aimed at broadening participation beyond companies that may have found the earlier eligibility requirements difficult to meet.
The second phase is expected to target equipment such as 3T MRI machines, PET-CT systems, ultrasound probes and high-throughput in-vitro diagnostic analysers, which the report described as largely dependent on imports at present. The stated objective is to build manufacturing capacity for these devices within India and strengthen production of both complete systems and specialised components.
The announcement was welcomed by the Association of Indian Medical Device Industry. Rajiv Nath, the forum coordinator of AiMeD, said the industry had been assured that limitations in PLI 1.0 would be addressed in the new phase. He also said India’s medical-device imports could cross ₹1 lakh crore this year, while calling for tariff changes, a dedicated medical-device law, preference for Indian manufacturers and balanced trade-margin policies.
The scheme’s immediate next step is the opening of the online application portal within the announced 10-day period. The government’s implementation timeline will determine how quickly new applicants can establish production facilities and begin manufacturing under the extended programme.
