PLI Scheme for Medical Devices — 5% Incentive on Domestic Sales

The Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices is a central government subsidy programme run by the Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers. Its aim is to build India's own capacity to make medical technology, cut the country's dependence on imported devices and draw large-scale investment into domestic production.

Rather than paying a fixed grant, the scheme rewards scale. Manufacturers that set up a new greenfield plant in India earn an incentive worth 5% of their incremental sales of eligible devices, measured against the FY 2019-20 base year. Only greenfield projects qualify, and the payout is linked to meeting a prescribed cumulative investment threshold along with year-wise sales targets.

The programme operates from FY 2020-21 through FY 2027-28 and is implemented by the Industrial Finance Corporation of India (IFCI), which serves as the Project Management Agency (PMA) handling applications, appraisal and disbursement.

Manufacturing under the scheme is concentrated in four target segments:

• Cancer care and radiotherapy devices
• Radiology and imaging devices, covering both ionizing and non-ionizing radiation products, plus nuclear imaging devices
• Anaesthetics and cardio-respiratory devices, including oxygen concentrators and cardio-respiratory catheters, along with renal care devices
• All implants, including implantable electronic devices such as cochlear implants and pacemakers

A critical component that forms a major part of a finished device — a rotating anode tube, an MRI magnet or a flat panel detector, for instance — is also treated as eligible under its matching segment if it carries a distinct HS code. This encourages deeper localisation of the medical device supply chain rather than assembly alone.

• Pays 5% of incremental sales, measured from the FY 2019-20 base year
• Only new greenfield medical device manufacturing projects qualify
• Minimum cumulative investment of ₹180 crore across three years
• Sales thresholds begin at ₹120 crore in Year 1 and reach ₹560 crore by Year 5
• Covers cancer care, radiology & imaging, anaesthetics & cardio-respiratory, and implants
• Run by IFCI as Project Management Agency; scheme period FY 2020-21 to FY 2027-28

Who can apply

• A company registered in India, or a Limited Liability Partnership (LLP).
• The project must be a new greenfield medical device manufacturing facility in India.
• Manufacturing must fall within one of the four target segments, or cover an eligible key component carrying its own distinct HS code.
• The applicant must commit to a minimum cumulative investment of ₹180 crore over three years.
• The applicant must be able to reach the prescribed incremental sales thresholds each year to claim the incentive.
• Applications are accepted only during a 120-day application window.

PLI Scheme for Medical Devices — 5% Incentive on Domestic Sales is open to startups at any stage. It is open to startups registered anywhere in India.

PLI Scheme for Medical Devices — 5% Incentive on Domestic Sales accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

The headline benefit is an incentive equal to 5% of incremental sales on medical devices made in India, calculated against the FY 2019-20 base year. It is a subsidy, so the money is not repaid.

The incentive is tied to two sets of conditions:

• Investment threshold: a minimum cumulative investment of ₹180 crore over three years.
• Sales thresholds: prescribed year-wise incremental sales targets, beginning at ₹120 crore in Year 1 and scaling to ₹560 crore by Year 5.

Eligible projects span cancer care, radiology and imaging, anaesthetics and cardio-respiratory devices, and implants.

Beyond the cash incentive, the Project Management Agency (IFCI) extends regulatory support and grants facilitation, helping companies work through the operational side of domestic manufacturing and the claim process.

PLI Scheme for Medical Devices — 5% Incentive on Domestic Sales is offered by Ministry of Chemicals and Fertilizers, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Every application passes through a structured review before any incentive is paid.

• Appraisal by the PMA: the Industrial Finance Corporation of India (IFCI), acting as Project Management Agency, examines each submission in detail — the proposed greenfield project, its financial viability, the commitment to the threshold investment and the projected incremental sales.
• Empowered Committee review: applications cleared by the PMA are placed before an Empowered Committee for final consideration and approval, weighing how well each project aligns with the scheme's objectives and its likely impact on domestic medical device manufacturing.
• Claim submission: once approved, participants file periodic claims based on their incremental sales and verified investments.
• Disbursement: the PMA verifies the claims and incentives are then released.

All applications must be submitted online within the 120-day application window.

Before you apply to PLI Scheme for Medical Devices — 5% Incentive on Domestic Sales, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.