CII body calls for expanding PLI for medical devices to more products

The Confederation of Indian Industry (CII) has urged the Indian government to expand the Production-Linked Incentive (PLI) scheme to encompass a broader range of medical devices. Currently, the PLI scheme benefits select medical devices, but CII advocates for its extension to include an additional 358 devices that are presently exempt from the Public Procurement Order (PPO) list.

Key Points:

• Extension of PLI Scheme: CII’s National Medical Technology Forum Chairman, Himanshu Baid, emphasized the need to extend the PLI scheme by an additional two to three years. This extension aims to bolster domestic manufacturing and reduce reliance on imports, thereby strengthening the ‘Make in India’ initiative.
• Inclusion of Additional Devices: The proposal includes adding 358 more medical devices to the PLI scheme. These devices are currently excluded from the PPO list, which comprises guidelines favoring domestic manufacturers in public procurement to promote local production.
• Addressing Import of Refurbished Devices: CII plans to request the government to implement strict policies on the import of refurbished or second-hand medical devices. The industry body expresses concerns that such imports could compromise patient safety and adversely affect domestic businesses.

Industry Context:

• Current Import-Export Scenario: India imports approximately 60-70% of its medical equipment, with domestic manufacturing accounting for only about 30%. Imports are valued at nearly USD 8 billion, while exports are around USD 4 billion. CII believes that expanding the PLI scheme could help balance this trade disparity.
• Export Potential: CII projects that with enhanced government support and incentives, India’s medical technology exports could reach USD 15-20 billion by 2030. This growth would position India as a significant player in the global med-tech industry.

Additional Recommendations:

• Separate Regulatory Framework: CII advocates for a distinct regulatory body for the medical devices sector, separate from the pharmaceutical industry, to address the unique challenges and standards of medical technology.
• Ease of Doing Business: The industry body calls for the removal of overlapping regulations and seeks exemptions from certain Quality Control Orders (QCO) that may hinder domestic manufacturing and exports.

By expanding the PLI scheme to a wider array of medical devices and implementing supportive policies, CII aims to enhance domestic manufacturing, reduce import dependence, and boost India’s competitiveness in the global medical technology market.