PLI Scheme for Medical Devices — 5% Incentive on Domestic Sales — Frequently Asked Questions
Answers to the questions founders most often ask about PLI Scheme for Medical Devices — 5% Incentive on Domestic Sales — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
What is the PLI Scheme for medical devices and who runs it?
It is a central government subsidy scheme that aims to expand India's domestic medical device manufacturing base, reduce dependence on imports and establish the country as a global hub for medical technology. It is run by the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers, with the Industrial Finance Corporation of India (IFCI) acting as the Project Management Agency.
How much funding does the scheme offer?
The scheme pays an incentive equal to 5% of incremental sales of eligible medical devices, calculated against the FY 2019-20 base year. Because the payout is tied to sales growth, the exact amount varies from company to company, and it is a non-repayable subsidy.
Is this a loan, or does the government take equity in return?
Neither. The support comes as a subsidy, described as non-repayable, and is released against verified incremental sales. You do not have to return the money and the government does not take a stake in your company.
Who is eligible to apply?
You need to be a company registered in India or a Limited Liability Partnership (LLP). The project must be a new greenfield medical device manufacturing facility in India, it must fall within one of the four target segments, and you must commit to a minimum cumulative investment of ₹180 crore over three years along with the prescribed year-wise sales thresholds.
Which medical device segments are covered, and are components eligible?
Four segments are covered: cancer care and radiotherapy devices; radiology and imaging devices, including ionizing and non-ionizing radiation products as well as nuclear imaging devices; anaesthetics and cardio-respiratory devices, including oxygen concentrators, cardio-respiratory catheters and renal care devices; and all implants, including implantable electronic devices such as cochlear implants and pacemakers. In addition, a key component that forms a major part of a finished device and has a distinct HS code — a rotating anode tube, MRI magnet or flat panel detector, for example — is eligible under the corresponding segment.
What is the minimum investment required?
Applicants must commit to a minimum cumulative investment of ₹180 crore, achieved over three years. There are also year-wise minimum investment targets that need to be met.
What sales targets must be met to claim the incentive?
Incentives are linked to incremental sales thresholds that have to be achieved annually. The scale starts at ₹120 crore in Year 1 and rises to ₹560 crore by Year 5, with all figures measured against the FY 2019-20 base year.
Is there an application deadline?
The scheme is open on a rolling basis, but applications are only accepted within a designated 120-day application window, so timing your submission matters. The overall scheme period runs from FY 2020-21 to FY 2027-28.
How and where do I apply?
Applications are submitted online through the dedicated IFCI portal at https://plimedicaldevices.ifciltd.com/. You will need to prepare the application with the details and documentation specified in the scheme guidelines before submitting it within the application window.
Who evaluates my application and how are incentives paid out?
IFCI, as the Project Management Agency, appraises each application, reviewing the greenfield project, its financial viability, the investment commitment and the projected incremental sales. Applications found eligible are then placed before an Empowered Committee for final approval. After approval, you file periodic claims based on your incremental sales and verified investments, and the incentives are disbursed once the PMA completes verification.
Is DPIIT recognition required for PLI Scheme for Medical Devices — 5% Incentive on Domestic Sales?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for PLI Scheme for Medical Devices — 5% Incentive on Domestic Sales, though having it can strengthen your application and unlock other benefits.
How do I apply for PLI Scheme for Medical Devices — 5% Incentive on Domestic Sales?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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