Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Medical Devices
Part of: Prelims and Mains GS-III – Science and Technology
In News: The Medical Device Sector in India suffers from a considerable cost of manufacturing disability vis-à-vis competing economies, inter alia, on account of lack of adequate infrastructure, domestic supply chain and logistics, high cost of finance, inadequate availability of power, limited design capabilities, low focus on research & development (R&D) and skill development, etc.
With an objective to boost domestic manufacturing, attract large investment in the Medical Device Sector, the Department of Pharmaceuticals had launched a Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of Medical Devices to ensure a level playing field for the domestic manufacturers of medical devices with a total financial outlay of Rs.3,420 cr. for the period 2020-21 to 2027-28.
- In the revised guidelines, the ‘Minimum Threshold’ investment requirement has been replaced by ‘committed investment’ taking into account availability of technology choices which varies from product to product.
- The change has been made to encourage efficient use of productive capital.
- The Department of Pharmaceuticals earlier come out with the two Production Linked Incentive Schemes: (1) Production Linked Incentive scheme for promotion of domestic manufacturing of critical Key Starting Materials, Drug Intermediates and Active Pharmaceutical Ingredients in India; (2) Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices.
Do you know?
- Globally, the Indian pharmaceutical industry is the third largest in terms of volume.
News Source: PIB