India's revamped medical device PLI scheme to expand manufacturing base

India's medical device sector is set for a significant expansion following a comprehensive overhaul of the Production Linked Incentive (PLI) scheme, which now extends support beyond large manufacturers to encompass component makers and micro, small and medium enterprises (MSMEs).

The restructured initiative aims to deepen localisation across the medical device manufacturing ecosystem by creating a more inclusive incentive architecture. The scheme provides differentiated incentive levels, with higher rewards directed toward the production of critical components and high-end medical devices that currently rely on imports.

By broadening the participant base to include suppliers and smaller manufacturers, the government seeks to build a more resilient and self-sufficient domestic supply chain. This multi-tier approach targets both the immediate needs of device manufacturers and the foundational capability gaps that have historically limited India's competitiveness in precision medical components.

Industry observers note that the expanded scheme addresses a key constraint in India's medical device ambitions: the absence of a robust domestic component base. The revised PLI framework is expected to catalyse investment across the value chain, from specialised material suppliers to contract manufacturers, thereby creating a more competitive and vertically integrated sector.