In a major boost to India’s medical technology sector, the country has begun domestic manufacturing of advanced medical devices, including CT scanners, MRI machines, and dialysis equipment, under the Production Linked Incentive (PLI) scheme. This initiative, introduced by the Government of India, aims to reduce reliance on imports, strengthen the healthcare infrastructure, and position India as a global hub for medical device manufacturing.

Transforming India’s Healthcare Landscape

India’s medical device industry has historically relied on imports for high-end diagnostic and treatment equipment. With the implementation of the PLI scheme, the government is actively fostering domestic manufacturing, ensuring availability of high-quality, affordable medical devices. By supporting local production, India is not only enhancing its healthcare self-sufficiency but also creating new avenues for economic growth and employment.

The scheme is designed to support manufacturers producing complex and critical medical devices by offering financial incentives. These incentives encourage companies to scale up their operations, invest in advanced technology, and develop globally competitive products. This development aligns with the government’s broader vision of ‘Atmanirbhar Bharat’ (Self-Reliant India) and aims to boost exports while strengthening the domestic supply chain.

Key Milestones Achieved Under the PLI Scheme

Under the PLI scheme, India has successfully initiated the production of 44 high-end medical devices, including MRI machines, CT scanners, linear accelerators, mammography equipment, C-Arms, and ultrasound machines. A total of 19 greenfield projects have been commissioned under this initiative, significantly reducing dependency on imports.

Financially, the PLI scheme has been a game-changer for the medical device industry. With a financial outlay of ₹3,420 crore, the program provides a 5% incentive on incremental sales of domestically manufactured medical devices for five years. As of September 2024, the scheme has attracted investments worth ₹1,057.47 crore, boosting local production capacity. The companies participating in the scheme have reported cumulative sales of ₹8,039.63 crore, with exports accounting for ₹3,844.01 crore, reflecting India’s growing influence in the global medical device market.

Driving Economic Growth and Export Potential

The Indian medical devices market, valued at $12.8 billion (₹1,04,760 crore) in 2023, is expected to grow steadily at a Compound Annual Growth Rate (CAGR) of 8.16% from 2025 to 2029. By 2029, the market is projected to reach $19.02 billion, making India one of the fastest-growing medtech markets in the world. This surge in domestic production will not only reduce import costs but also strengthen India’s position as a key exporter of medical technology.

The PLI scheme has also spurred foreign and domestic investments in India’s medical technology sector. For instance, Siemens Healthineers has recently inaugurated a manufacturing facility in Bengaluru, dedicated to producing MRI machines, particularly the MAGNETOM Free.Star, a state-of-the-art MRI system designed for cost-effective imaging solutions. This move signifies a shift towards India becoming a major production and export hub for sophisticated medical devices.

Ensuring Accessibility and Affordability of Medical Technology

One of the critical aspects of this initiative is ensuring that advanced medical technology becomes more accessible and affordable across India. With the country now producing its own CT scanners, MRI machines, and dialysis equipment, hospitals and diagnostic centers in tier-2 and tier-3 cities will benefit from cost-effective solutions, ultimately improving patient care and healthcare outcomes.

Additionally, this shift will facilitate increased research and development (R&D) in medical device innovation. Indian manufacturers, with government support, are now in a position to develop new-generation medical devices tailored to meet both domestic and global healthcare needs.

The Road Ahead: A Self-Reliant Future in Medical Devices

The success of the PLI scheme highlights India’s commitment to building a robust healthcare infrastructure that is independent of foreign imports. By encouraging indigenous production of high-value medical devices, the initiative is fostering innovation, creating job opportunities, and strengthening India’s global standing in the medtech industry.

With continuous government support, industry participation, and technological advancements, India is well on its way to becoming a leader in medical device manufacturing. As more companies invest in local production, the country will not only achieve self-reliance but also emerge as a preferred destination for medical technology exports worldwide.