NEW DELHI, Nov 11: The Central Government has extended the Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices until the financial year 2035–36, inviting fresh applications from manufacturers as part of efforts to strengthen India’s medical equipment industry and reduce dependence on imported healthcare technologies.
The Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers announced the extension on November 10, stating that approximately Rs 2,700 crore remains available under the programme for supporting new manufacturing investments.
The revised scheme also introduces several changes to eligibility requirements and investment conditions to make participation easier for companies interested in establishing or expanding medical device manufacturing facilities in India.
Among the major changes, the government has discontinued the minimum sales threshold previously required for claiming incentives and reduced the minimum investment requirement. The modifications are intended to encourage wider industry participation, particularly in manufacturing segments where domestic production capabilities remain limited.
The online application portal is expected to become operational within 10 days of the announcement, allowing eligible companies to submit fresh proposals under the revised guidelines.
The extension represents an important policy intervention aimed at developing a stronger domestic medical technology ecosystem, improving manufacturing capabilities and encouraging investment in advanced healthcare equipment.
Government Focuses on Reducing Import Dependence
India’s healthcare sector relies on a combination of domestically manufactured and imported medical devices, particularly in specialised categories involving advanced imaging, diagnostics and critical treatment technologies.
Although domestic manufacturers have expanded their presence in several product categories, the country continues to face challenges in developing complete manufacturing capabilities for sophisticated medical equipment and essential components.
The extended incentive programme seeks to address these gaps by encouraging companies to invest in manufacturing facilities, advanced production technologies and local supply chains.
The government has identified high-end medical equipment and critical components as important areas requiring additional investment.
Products such as magnetic resonance imaging systems, computed tomography scanners, radiotherapy equipment, diagnostic instruments and specialised medical implants are essential for modern healthcare delivery.
Greater domestic production could help improve the availability of these technologies while supporting the development of technical expertise and manufacturing infrastructure.
The initiative is also expected to create opportunities for Indian companies to participate more extensively in global medical technology supply chains.
By encouraging manufacturing within the country, policymakers aim to strengthen the industry’s ability to serve hospitals, diagnostic centres, research institutions and other healthcare providers.
More Than 60 High-End Medical Devices Manufactured Domestically
The government stated that the PLI programme, launched during 2020–21, has supported the commencement of domestic manufacturing of more than 60 high-end medical devices and components.
These include X-ray tubes and detectors, 1.5 Tesla MRI systems, linear accelerators used in cancer treatment, CT scanners, mammography equipment, catheterisation laboratory devices, orthopaedic and cardiac implants, and dialysers.
These products cover several important areas of healthcare, including diagnostic imaging, cancer treatment, cardiovascular care, renal treatment and orthopaedic surgery.
The expansion of domestic production in these categories is significant because medical institutions require reliable access to specialised equipment for diagnosing and treating complex conditions.
For instance, MRI and CT systems are widely used for identifying internal injuries, neurological conditions, tumours and other medical abnormalities.
Linear accelerators are essential components of modern radiation therapy facilities, enabling hospitals to provide advanced cancer treatment.
Similarly, dialysers play an important role in kidney care, while cardiac and orthopaedic implants are used in specialised surgical procedures.
The development of domestic manufacturing capabilities in these areas could strengthen supply availability and encourage further investment in healthcare technology.
The government has also highlighted the importance of improving the production of components rather than relying primarily on assembling imported equipment.
Rs 2,700 Crore Available for Fresh Investment
Under the extended programme, approximately Rs 2,700 crore will remain available to support eligible manufacturers.
The government has invited new applications with the objective of utilising the available financial allocation to develop additional production capacity.
Companies will be provided three years to establish their manufacturing facilities under the revised framework.
The scheme has identified four broad target segments for investment.
The first segment covers medical consumables, disposable products and implantable devices. These products are widely used in hospitals, laboratories, surgical facilities and other healthcare institutions.
The second category focuses on critical components required for manufacturing medical equipment.
The third segment covers high-end medical devices where domestic manufacturing is currently at an early stage.
The fourth category includes advanced equipment that is presently assembled in India but requires deeper domestic manufacturing capabilities.
The classification is intended to encourage investment across different stages of the medical technology supply chain.
While the first segment focuses on products with broad healthcare applications, the remaining categories aim to strengthen technological capabilities and reduce dependence on imported components.
The government expects the revised structure to attract manufacturers with different investment capacities and areas of technical expertise.
Incentive Rates to Encourage Advanced Manufacturing
The revised framework provides different incentive structures depending on the manufacturing category.
For medical consumables, disposables and implants, the average incentive rate will be approximately 5 per cent.
The second and third target segments, covering critical components and high-end devices at an early stage of domestic manufacturing, will receive incentives averaging around 9 per cent.
For the fourth segment, which covers high-end medical devices where domestic assembly already takes place, the average incentive rate will be approximately 6 per cent.
The differentiated structure reflects the government’s intention to encourage investment in areas requiring greater technological development and manufacturing expertise.
Critical components are particularly important because the performance and reliability of advanced medical equipment depend on the quality of their internal systems and specialised parts.
Developing these capabilities domestically could support greater integration of manufacturing operations and improve the competitiveness of Indian medical technology companies.
The government has also emphasised the importance of building large-scale manufacturing capacity and maintaining international quality standards in the medical consumables and disposable products segment.
For advanced equipment, value-chain integration will remain a major priority.
Relaxed Eligibility Conditions to Attract More Companies
One of the most important changes introduced under the revised programme is the removal of the minimum sales threshold required to claim incentives.
Previously, manufacturers were required to meet prescribed sales conditions to become eligible for incentive payments.
The removal of this requirement is expected to make the scheme more accessible to companies that are in the early stages of production or are gradually expanding their market presence.
The minimum investment requirement has also been reduced to make the programme more attractive to potential applicants.
These changes are particularly relevant for companies developing specialised medical technologies, where establishing manufacturing infrastructure can require substantial capital and a longer period before commercial operations reach scale.
The revised guidelines also allow applicants to submit multiple applications under one or more target segments.
This provision could benefit companies operating across different medical device categories and manufacturers seeking to diversify their production portfolios.
The government has described the changes as part of its broader effort to simplify procedures and improve the ease of doing business.
However, companies that received approval before October 31, 2026, will continue to be governed by the earlier guidelines, according to the revised scheme provisions.
Greater Focus on MRI, PET-CT and Diagnostic Technologies
The extended programme places particular emphasis on developing domestic manufacturing capabilities for advanced diagnostic and treatment equipment.
The government has identified technologies such as 3T MRI systems, PET-CT scanners and high-throughput in-vitro diagnostic analysers as important areas for future investment.
These technologies are increasingly important for specialised medical services and the diagnosis of complex diseases.
MRI systems are used to produce detailed images of internal organs and tissues without using ionising radiation.
PET-CT combines functional imaging with anatomical information and is widely used in cancer diagnosis, treatment planning and monitoring.
High-throughput in-vitro diagnostic analysers enable laboratories to process large numbers of clinical samples efficiently, supporting the diagnosis and monitoring of different medical conditions.
Developing domestic production capabilities for these technologies could strengthen India’s medical equipment industry and create opportunities for research institutions, engineering companies and healthcare technology manufacturers.
However, manufacturing sophisticated equipment requires specialised components, advanced engineering capabilities, technical expertise and rigorous quality testing.
The government will therefore need to ensure that incentive support is accompanied by improvements in research and development, skilled workforce availability and industry-academia partnerships.
Opportunities for Domestic Manufacturers and Investors
The extended PLI programme is expected to provide fresh opportunities for Indian manufacturers, medical technology companies and investors interested in healthcare infrastructure.
Companies involved in medical electronics, precision engineering, medical-grade materials and specialised component production could explore opportunities under the revised categories.
The initiative may also encourage partnerships between domestic manufacturers and international medical technology companies seeking to establish production operations in India.
Such collaborations could facilitate technology transfer, improve manufacturing standards and support the development of locally designed equipment.
A stronger domestic manufacturing ecosystem could also benefit hospitals and diagnostic centres by improving access to a wider range of medical products.
However, the actual impact on equipment prices will depend on manufacturing costs, competition, distribution networks, quality standards and the extent to which domestic production reduces import-related expenses.
Medical device manufacturers will also need to comply with applicable regulatory requirements and maintain appropriate standards of product safety and performance.
The expansion of production capacity must therefore be accompanied by strong quality assurance systems to ensure that domestically manufactured equipment meets the requirements of healthcare institutions.
Strengthening India’s Medical Technology Ecosystem
The extension of the medical device PLI scheme until 2035–36 reflects the government’s long-term commitment to developing domestic healthcare manufacturing capabilities.
The availability of approximately Rs 2,700 crore for fresh investment, together with relaxed eligibility conditions, is intended to attract companies into product categories that require additional technological development.
The programme could also contribute to employment generation, specialised skill development and greater participation of Indian companies in international healthcare supply chains.
For the healthcare sector, stronger domestic production could improve the resilience of equipment supplies and support the expansion of diagnostic and treatment facilities.
Nevertheless, the success of the extended scheme will depend on the ability of manufacturers to translate financial incentives into sustainable production capacity.
Access to advanced technology, reliable component supplies, skilled workers, research infrastructure and consistent quality standards will remain essential.
As the government prepares to open the application portal under the revised guidelines, the next phase of the programme is expected to provide an opportunity for manufacturers to expand their operations and invest in advanced medical technologies.
The broader objective is to build a competitive medical device industry capable of supporting India’s healthcare requirements while strengthening its position in the global medical technology market.