India’s healthcare sector is entering an important phase of transformation. While the country has made significant progress in healthcare services and pharmaceutical manufacturing, medical device manufacturing presents another major opportunity for economic growth.
On 10 November 2026, the Government of India invited fresh applications under the Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices. The scheme has been extended up to 2035–36, with approximately ₹2,700 crore available for the initiative.
Why does this matter?
India has traditionally depended on imports for several advanced medical devices and critical components. Strengthening domestic manufacturing can help reduce import dependence, develop indigenous technology and improve supply-chain resilience.
The renewed scheme focuses on:
- Manufacturing of critical medical device components.
- High-end medical equipment such as MRI and PET-CT systems.
- Strengthening domestic supply chains.
- Encouraging investment and technological development.
- Creating opportunities for MSMEs and domestic manufacturers.
The financial and economic perspective
Government incentives are important, but their real success depends on how effectively they translate into productive investment.
For businesses, this creates opportunities in capital investment, research and development, working capital management and supply-chain integration.
For finance professionals, it also brings important considerations:
- Evaluating project viability and return on investment.
- Assessing the impact of government incentives on financial performance.
- Managing capital expenditure and operational costs.
- Ensuring regulatory compliance and transparent financial reporting.
The road ahead
India’s ambition should go beyond assembling medical equipment. The real opportunity lies in developing indigenous technology, manufacturing critical components and building globally competitive healthcare brands.
Government support can provide the initial momentum, but innovation, quality, cost efficiency and execution will determine long-term success.
The bigger question is not whether India can manufacture medical devices, but whether India can become a global destination for medical technology innovation and manufacturing.
Because true economic growth is not just about producing more; it is about building capabilities that create lasting value.