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PLI Scheme (Medical Devices)
What it is
Production Linked Incentive scheme for medical devices, outlay Rs 3,420 cr over FY23-FY27, paying 5% on incremental sales of devices made in India across four target segments - cancer care and radiotherapy, radiology and imaging, anaesthetics/cardio-respiratory/renal care, and implants
Supported by a Rs 300 cr Medical Device Parks scheme giving up to Rs 100 cr per park for shared testing and sterilisation infrastructure
Impact on industries
- Moved high-end manufacturing onshore for the first time - 27 approved projects, 14 of them MSMEs, now making MRI and CT scanners, linear accelerators, C-arms, heart valves and stents
- Crowded in private capital beyond the scheme itself, with MedTech FDI of ~Rs 17,201 cr between FY22 and FY26
- Small relative to the problem - import dependence is still ~70% for high-end devices, and realised investment of ~Rs 1,153 cr is modest against the ambition
- Disbursal has been slow, at ~Rs 267 cr of incentives released to FY25, and the production window closes in FY27 with cost competitiveness after it untested