Government extends medical devices incentive scheme through financial year 2035–36

The Department of Pharmaceuticals invited fresh applications under the Production Linked Incentive scheme for domestic manufacturing of medical devices on 10 November 2026. The revised programme extends through financial year 2035–36. Overnight coverage on 11 November 2026 highlighted the extension and the changes to eligibility requirements. The government identified an available outlay of about ₹2,700 crore for the new round of support.

The revised framework removes the minimum sales threshold previously needed to claim an incentive and lowers the minimum investment requirement. It permits applications across more than one product category. The programme focuses on critical components, consumables and implants, advanced equipment and devices currently assembled domestically. Applicants have a three-year period to establish greenfield or brownfield facilities. The changes aim to deepen domestic production and supplier networks rather than limit support to final assembly. The opening of an application window and the award of an incentive are separate steps, so the invitation does not mean that every applicant has been selected.

Facts to remember

• The extension runs through financial year 2035–36.
• The Department of Pharmaceuticals announced fresh applications on 10 November 2026.
• About ₹2,700 crore is available under the revised programme.
• The minimum sales threshold for incentives has been removed, while the minimum investment requirement has been reduced.

Background

The medical-device manufacturing incentive scheme began in financial year 2020–21. Its first phase supported domestic production of more than 60 high-end devices and components, including CT scanners, X-ray tubes and detectors, and 1.5-Tesla MRI machines. The revised programme seeks more domestic value addition by supporting components as well as finished equipment.

Why it matters for exams

For CLAT Economy and government schemes, remember the implementing department, extension year and eligibility changes.