Medical devices industry is considered as one of Indias sunrise sectors. India is amongst the worlds fastest emerging Medical Device market with exports from the sector growing steadily at a CAGR of around 14 percent since FY 2019-20. The market for medical device industry in India is currently estimated to be of the size of USD 11 billion and it is expected to cross USD 30 billion mark by 2050.
The Medical Device Sector in India suffered from cost of manufacturing disability vis-à-vis competing economies, inter alia, on account of lack of adequate infrastructure, domestic supply chain and logistics, high cost of finance, limited design capabilities, low focus on research and development (R&D) etc.
In order to mitigate the limitations affecting the sector, with an objective to boost domestic manufacturing and attract large investment in Medical Device Sector, the Department of Pharmaceuticals had launched a Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Medical Devices to ensure a level playing field for the domestic manufacturers of medical devices. The total financial outlay of the Scheme is Rs.3,420 cr. for the period 2020-21 to 2027-28.
Under the scheme, financial incentive is given to selected companies at the rate of 5% of incremental sales of medical devices manufactured in India and covered under four Target Segments of the scheme i.e. (1) Cancer care equipment, (2) Imaging Devices, (3) Critical care devices, and (4) Body implants.
Total 26 applicants have been approved for 138 products under the scheme. Investment of around Rs. 875 crores have already been grounded towards capacity creation under the scheme.
These companies ie, Panacea Medical Technologies Private Limited, Philips Global Business Services LLP, Siemens Healthcare, Wipro GE Healthcare, Trivitron Healthcare, Allied Medical , Microtek New Technologies, Nipro India Corporation, Poly Medicure, Majik Medical Solutions, Envision Scientific, Innvolution Healthcare, Sahajanand Medical Technologies inaugrated new sites.
The inauguration of the 13 Greenfield plants will be a big step towards achieving self-reliance in manufacturing of wide range of medical devices. With a wide base of scientists, bio-medical engineers, and a growing innovation ecosystem in the country, the India MedTech sector is poised to grow rapidly. Indian manufacturers are continuously innovating. Indigenous development of cancer care equipment, such as Linear Accelerator for radiotherapy and evolved coronary stents, under the PLI scheme, are illustrious example of the same.
The PLI scheme encourages manufacturers to invest in R&D activities to develop innovative products and technologies. The scheme has enabled technology transfer in high-end medical devices enhancing our capabilities. The PLI scheme creates opportunity for India to become a significant player in the export of medical devices. The scheme lays pathway for development of entire ecosystem of medical device manufacturing, which includes the components and sub components used in manufacturing of medical devices.
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