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Medical devices sector secures Rs. 958.72 crore in investments

Production linked incentive (PLI) scheme for medical devices has attracted investment of Rs. 958.572 crore by April 2024. Seventeen units have also been commissioned by the end of FY24.

Official data revealed that the investment under the PLI scheme for medical devices increased from Rs. 837.23 crore in March 2023 to Rs. 958.72 crore by April 2024.

Launched in 2020 with a financial outlay of Rs. 3,420 crore, the scheme has recorded production worth Rs. 5,889.29 crore by April 30, 2024.

Official figures reveal that 26 out of the 64 applications have been approved by the Department of Pharmaceuticals (DoP) in four rounds. The total number of products approved for these 26 applicants under the scheme is 138.

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.

In March 2024, DoP inaugurated 13 Greenfield manufacturing plants for medical devices under the PLI scheme.

Medical devices manufactured under the PLI scheme include CT scans, MRI coil, LINAC, c-arm, ultrasonography, dialysis machines, intensive care ventilators, knee implants, hip implants, heart valves, stents, dialyzers, etc.

Indian medical device makers have called for a 10 to 15 percent hike in customs duty on certain items. According to them, this will foster a more balanced trade environment, encouraging domestic manufacturing and reducing the reliance on imports, which currently still constitute 70 percent of the sector.

The imports of medical devices have consistently been over ₹61,000 crore range for the last three years. This year it has increased by 13 percent to ₹69,000 crore.

Industry has also called for a capping on trade margins. Industry said by monitoring the Maximum Retail Price of imports, the government will curb the excessive mark-ups often seen in the market. This measure will make medical devices more affordable and accessible to the Indian populace.

Indian medical device exports have been expanding at a CAGR of 14% since FY20, said the Ministry. The medical device industry in India is expected to hit USD 30 billion.
MB Bureau

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