India’s Growth in MedTech: 19 Projects Commissioned Under PLI Scheme for Medical Devices
The Government of India has introduced several Production Linked Incentive (PLI) Schemes to strengthen domestic manufacturing in the pharmaceutical and medical device sectors. These initiatives aim to reduce import dependence, encourage investment, and boost local production.
PLI Scheme for Bulk Drugs:
This scheme focuses on promoting the domestic production of critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs).
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- Financial Outlay: ₹6,940 crores.
- Production Tenure: FY 2022-23 to FY 2028-29.
- Highlights:
- 48 projects have been approved, with 34 commissioned to manufacture 25 bulk drugs.
- Committed investment of ₹3,938 crores has been exceeded, with ₹4,155.77 crores realized.
- Cumulative sales under the scheme reached ₹1,330.82 crores, including ₹389.82 crores in exports.
- Employment for 4,241 individuals has been generated.
PLI Scheme for Pharmaceuticals:
This scheme supports the production of high-value pharmaceutical products, including patented/off-patented drugs, biopharmaceuticals, complex generics, anti-cancer drugs, autoimmune drugs, and orphan drugs.
- Financial Outlay: ₹15,000 crores.
- Production Tenure: FY 2022-23 to FY 2027-28.
- Scope: Incentives provided to 55 selected applicants for manufacturing identified products under three categories for a period of six years.
PLI Scheme for Medical Devices:
This scheme promotes the domestic manufacturing of high-value medical devices, such as Linear Accelerators, MRI machines, CT scanners, Mammograms, C-Arms, and Ultrasound machines.
- Financial Outlay: ₹3,420 crores.
- Production Tenure: FY 2022-23 to FY 2026-27.
- Highlights:
- Incentives at a 5% rate on incremental sales for eligible products over five years.
- 32 applicants have been approved, with 19 greenfield projects commissioned to produce 44 high-end medical devices.
- Realized investment stands at ₹1,057.47 crores against a commitment of ₹1,356.94 crores.
- Cumulative sales total ₹8,039.63 crores, with ₹3,844.01 crores attributed to exports.
Overall Impact:
As of October 2024, total investments under these PLI schemes have reached ₹33,534 crores, surpassing the original projection of ₹17,275 crores. Incentive payments amounting to ₹3,215 crores have been disbursed to 45 companies. These schemes also support infrastructure development, research and development (R&D), product registration, and new plant setups.
