According to Union Minister JP Nadda’s announcement in the Lok Sabha, ₹266.64 crore will be made available as incentives under the Production Linked Incentive (PLI) Scheme for Medical Devices until FY2024-25, and ₹209.80 crore will be distributed under the Medical Device Parks Scheme. The plans aim to improve India’s healthcare system, boost local manufacturing, and lessen reliance on foreign suppliers.
According to Nadda’s written response to the Lok Sabha, ₹177.98 crore of the funds allocated for Medical Device Parks have already been spent. The Marginal Investment Scheme for Reducing Import Dependence (MIS-RID) of the Scheme for Strengthening of Medical Device Industry (SMDI) has authorised projects worth ₹101.50 crore, and the Common Facilities for Medical Devices Clusters (CFMDC) component has sanctioned ₹88.67 crore. Under these programs, ₹20.62 crore has been disbursed thus far.
A total of ₹3,420 crore was allocated to the Medical Devices PLI Scheme, which the minister emphasised, which offers financial incentives for incremental sales in four important areas: cancer care and radiotherapy, radiography and imaging, anaesthetics, cardio-respiratory and renal care devices, and implants. The goal is to promote the production of premium medical devices in India.
There have been 27 PLI scheme approvals so far, with 14 of those coming from MSMEs (micro, small, and medium enterprises), as reported by the government. The domestic production of medical equipment such as MRI scanners, CT scanners, linear accelerators (LINACs), mammography systems, C-arms, ultrasound machines, heart valves and stents has been made possible by these authorised projects, which have attracted investments totalling ₹1,153.07 crore.
A total of ₹300 crore has been allocated to the Medical Device Parks Scheme, which would fund the establishment of shared facilities like testing labs, sterilisation rooms, warehouses, incubation centers, and prototyping units. To enhance manufacturing efficiency and decrease production costs, the initiative allows the Centre to offer financial aid of up to ₹100 crore to each medical device park.
In the states of Uttar Pradesh (Noida), Madhya Pradesh (Ujjain), and Tamil Nadu (Kanchipuram), three medical device parks are currently being established. The Indian government is banking on these parks to do three things: boost innovation, help small and medium-sized enterprises (SMEs) and startups, and solidify India’s status as a world leader in medical device manufacturing.
By maintaining its investments in the PLI Scheme and Medical Device Parks, the Indian government is bolstering the healthcare manufacturing ecosystem, promoting high technology production, and speeding up the country’s transition to medical device self-sufficiency.
Image: Punjab Kesari English
Disclaimer: All news articles are sourced through valid sources, and Business Unlimited (BU) doesn’t have any exclusive rights on these pieces. If BU features any exclusive story or article, it will be marked as Exclusive Story.
