Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices

The Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices is run by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers. Its aim is to strengthen India's self-reliance in healthcare by expanding domestic manufacturing capacity and drawing investment into the medical device industry. Financial incentives are extended to companies running greenfield projects in India, with the goal of lowering import dependence and building India into a global manufacturing hub for medical technology.

Incentives are calculated on incremental sales over a base year (FY 2019-20), and applicants must meet strict threshold investment conditions. This design ties rewards to measurable growth and to a company's commitment to scaling up manufacturing within the country. The Industrial Finance Corporation of India (IFCI) serves as the Project Management Agency (PMA), handling application, appraisal and disbursement.

Four target segments are covered: - Cancer care / Radiotherapy medical devices - Radiology & Imaging medical devices (both ionizing & non-ionizing radiation products) and Nuclear Imaging devices - Anaesthetics & Cardio-Respiratory medical devices, Oxygen Concentrators, including Catheters of Cardio-Respiratory Category & Renal Care medical devices - All implants, including implantable electronic devices like Cochlear Implants and Pacemakers.

A key component forming a major part of a finished medical device — for instance a Rotating Anode Tube, MRI Magnet or Flat Panel Detector — that carries a distinct HS code is also eligible under the matching target segment. This supports deeper localisation of the supply chain.

- **Online application**: Applications are to be filed through the portal at https://plimedicaldevices.ifciltd.com/ by applicants who meet the eligibility criteria. - **Documentation**: Assemble the application along with every detail and document mandated under the scheme guidelines. - **Filing**: The completed application must be filed within the stipulated application window, which generally spans 120 days. - **Appraisal**: The Project Management Agency (PMA), Industrial Finance Corporation of India (IFCI), carries out appraisal of the application received. - **Approval**: Applications found eligible are placed before an Empowered Committee, which grants final approval. - **Claims**: Following approval, applicants may file claims at periodic intervals for disbursement of the incentive, calculated on the basis of their incremental sales and verified investments. - **Disbursal**: The PMA verifies the claims in detail, after which the incentives are released.

Applications undergo a rigorous appraisal by the Project Management Agency (PMA), Industrial Finance Corporation of India (IFCI). This covers a detailed examination of the proposed greenfield project, its financial viability, adherence to threshold investment commitments, and projected incremental sales targets.

Eligible applications cleared by the PMA are then placed before an Empowered Committee, which grants final consideration and approval. The committee assesses how far each project aligns with the scheme's objectives and the impact it may have on domestic medical device manufacturing.