The CII National Medical Technology Forum Chairman Himanshu Baid urged the government to extend the production-linked incentive (PLI) scheme for the medical technology sector. Baid emphasized that the need is to include more products under the PLI scheme, specifically 358 high-technology medical devices currently exempt from the public procurement order list.

Boosting Domestic Manufacture

Baid said PPO guidelines favour the 'Make in India' initiative, giving impetus to local manufacturers. It is only by incentivizing and technologically aiding home-grown companies that will significantly reduce imports and ultimately enable the nation to achieve its goal of self-reliance in medical technology, he noted.

Use of PLI Scheme in current times

Only 28 companies have been allotted projects under the current PLI scheme. An outlay of Rs 3,420 crore from FY20-21 to FY27-28 has only been utilized to the tune of 10 to 20 percent. Baid cited this low utilization as a result of the disruption caused by the COVID-19 pandemic, which resulted in the loss of two years of the scheme.

Boosting Domestic Production

Baid said that India imports about 60 to 70 percent of its medical equipment, whereas domestic manufacturing is only about 30 percent. He thinks that if the PLI scheme is extended for another two to three years and more medical devices are included, it will strengthen domestic manufacturing and reduce the import of medical equipment.

Increasing Self-Reliance

The PLI scheme may be extended and home-grown manufacturers supported to ensure that there is a good level of self-reliance in the medical technology sector. Baid's call for action brings forward the strategic approach needed to bolster India's capabilities in medical device manufacturing to reduce import dependence. The move will eventually support the "Make in India" initiative for sustainable growth and economic development.