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The Centre has invited fresh applications under the Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices (PLI-MD), which has now been extended up to 2035–36. An outlay of approximately ₹2,700 crore will be used under the scheme.
Launched in 2020-21, the scheme has so far enabled domestic manufacturing of over 60 high-end medical devices and components. These include X-ray tubes and detectors, 1.5T MRI machines, LINAC systems, CT scanners, mammography machines, Cath labs, orthopaedic and cardiac implants, and dialysers. Production under the scheme has been valued at over ₹16,000 crore.
Simplified procedure
Drawing on lessons from the first phase, the government has eased eligibility conditions and simplified the procedure for claiming incentives. The minimum sales threshold for claiming incentives has been discontinued, and the minimum investment requirement has been reduced. To improve ease of doing business, the guidelines have been made more investor-friendly. Applicants may submit any number of applications across one or more target segments, and the application window will remain open over a long period.
Applicants will get three years to set up manufacturing facilities in any of four target segments: medical consumables, disposables and implants (TS1); critical components (TS2); high-end medical devices at a nascent stage of domestic manufacturing (TS3); and high-end medical devices that are currently only assembled in India (TS4).
The tapering incentive rate will average about 5 per cent for TS1, about 9 per cent for TS2 and TS3, and 6 per cent for TS4. In consumables and disposables, the focus will be on building manufacturing scale and world-class quality. In TS3 and TS4, priority will go to value chain integration to improve the competitiveness and quality of Made in India devices.
The move carries significant weight for the sector. The extension to 2035–36 gives manufacturers a long, predictable policy runway, which is crucial for capital-intensive industries like medical technology, where investments take years to pay off.
India still depends heavily on imports for advanced medical equipment, and the scheme targets that gap by promoting deep manufacturing rather than mere assembly. The emphasis on critical components is expected to strengthen domestic supply chains and give a boost to the MSME sector.
The scheme also targets high-end equipment not yet made in India, such as 3T MRI, PET-CT, ultrasound probes and consoles, and high-throughput IVD analysers.
Local production of such devices could, over time, lower prices and improve access to advanced diagnostics and treatment.
Published on November 10, 2026
English (US) ·