The Union Cabinet on Wednesday approved production-linked incentive (PLI) scheme for pharmaceuticals over a period of eight years (FY21-FY29). It will benefit domestic manufacturers, help in creating employment and is expected to contribute to the availability of wider range of affordable medicines for consumers.
The total quantum of incentive under the scheme is about Rs 15,000 crore.
The manufacturers of pharmaceutical goods registered in India will be grouped based on their global manufacturing revenue to decide the target elements for the scheme.
The scheme is expected lead to the total incremental sales of Rs 2.94 trillion and exports worth Rs 1.96 trillion are estimated during six years from FY23 to FY28. It is also expected to bring in investment of Rs.15,000 crore in the pharmaceutical sector.
"The scheme is expected to generate employment for both skilled and un-skilled personnel, estimated at 20,000 direct and 80,000 indirect jobs and will bring in investment of Rs 15,000 crore in the sector.
The scheme shall cover pharmaceutical goods under three categories:
Category 1: Biopharmaceuticals; Complex generic drugs; Patented drugs or drugs nearing patent expiry; Cell based or gene therapy drugs; Orphan drugs; Special emptycapsules like HPMC, Pullulan, enteric etc.; Complex excipients; Phyto-pharmaceuticals: Otherdrugs as approved.
Category 2: Active Pharmaceutical Ingredients (API), key starting materials, drug intermediates.
Category 3: Repurposed drugs; Auto immune drugs, anti-cancer drugs, anti-diabetic drugs, anti-infective drugs, cardiovascular drugs, psychotropic drugs and anti-retroviral drugs; In vitro diagnostic devices; Other drugs as approved; Other drugs not manufactured in India.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU