India extends medical device incentive scheme to 2036

The Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers in India has invited new applications for a Rs 2,700-crore Production Linked Incentive (PLI) scheme for medical devices.

The government extended the program's tenure until the 2035-36 fiscal year and simplified the rules to make the program more investor friendly. The updated guidelines remove the minimum sales threshold for financial incentives and lower the baseline capital expenditure required from manufacturers.

Companies have three years to establish manufacturing facilities across four target segments, which include medical consumables and implants, critical components, and high-end medical devices. The government aims to use these incentives to create domestic supply chains, generate jobs, and lower device prices. The initiative focuses on deep manufacturing to produce equipment that is currently only assembled in the country or not manufactured there at all. This includes items like 3T MRI machines and ultrasound probes.

Applicants can submit their requests through a new online portal that will open in the next 10 days.