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Production Linked Incentive (PLI) Scheme

The Department of Pharmaceuticals launched a ‘Production Linked Incentive Scheme’ on 21st July 2020, to address the constraints in the manufacturing of medical devices in India vis-à-vis other major manufacturing economies and to boost domestic production and to attract significant investments in the medical devices sector. This announcement is in line with the Government’s Aatma Nirbhar Bharat vision, wherein the Indian industry would be strengthened to enhance focus on value addition. Linking incentives to production will encourage domestic manufacturing, thereby reducing India’s dependence on imports which contribute about 85% of the segment. Such initiatives also support a competitive ecosystem, which can attract large global players to invest in the Indian manufacturing ecosystem.