The government has introduced the production-linked incentive (PLI) scheme to enhance the country's manufacturing capabilities of medical equipment and encourage the development of technology.
The Centre should increase the rate of incentive under the PLI scheme to 10 per cent from 5 per cent to reduce dependence on import of medical equipment and boost domestic manufacturing of such products, an official of a company involving in the sector said on Sunday.
The government has introduced the production-linked incentive (PLI) scheme to enhance the country’s manufacturing capabilities of medical equipment and encourage the development of technology.
“The PLI scheme is an excellent initiative to make India Atmanirbhar (self-reliant) in the sector. But the incentive rate is just five per cent for the medical technology companies, while the same for the automobile industry is 10 per cent.
“We urge the government to raise it to 10 per cent,” Transasia Bio-Medicals chairman and managing director Suresh Vazirani told PTI.
The five per cent incentive rate is “inadequate” and should be increased to facilitate Indian companies to produce medical devices not only for the country but also for the overseas markets.
According to an estimate, the import of medical equipment from China accounts for around 25 per cent of the $50 billion industry in India.
Indian companies in the medical technology sector are not able to compete in the global market due to several infrastructural inefficiencies and high cost of funds, he said.
“The production-linked incentive of 10 per cent will help mitigate these hurdles and double the output of medical technology-based products. This will also facilitate med-tech companies to meet at least 50 per cent of the country’s demand for such products in the next 3-4 years,” Vazirani said.
The Rs 1,300 crore company is planning to set up its fourth manufacturing plant in the country. The medical-technology firm has three domestic units and two overseas facilities.
“We are planning to build our fourth domestic plant. The company is in talks with Telangana and Andhra Pradesh for the project. It will involve a capital expenditure of Rs 100- 150 crore, and the facility will produce blood analysers,” the official said.