The Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for Pharmaceuticals for Financial Year 2020-21 to 2028-29. The Scheme will support domestic manufacturers, help generate jobs and is anticipated to lead to the development of a broader variety of affordable medicines for consumers.
The scheme is intended to encourage the production of high-value goods in the country and increase the added value of exports. Net incremental revenue of Rs.2,94,000 crore and total incremental exports of Rs.1,96,000 crore is projected for six years from 2022-23 to 2027-28. It is expected to create employment for both skilled and unskilled employees projected at 20,000 direct and 80,000 indirect jobs as a result of the sector’s expansion.
This move is expected to encourage progress in the production of diverse and high-tech products, including new therapies and in-vitro diagnostic instruments as well as self-reliance in essential medicines. Accessibility and availability of medicinal goods, particularly orphan medicines, is also projected to increase for the Indian population. The program is also planned to bring in investment of Rs.15,000 crore in the pharmaceutical industry.
The scheme will be part of the umbrella scheme for the growth of the pharmaceutical industry. The scheme aims to improve India’s manufacturing capability by growing investment and development in the sector and by leading to the diversification of high-value products in the pharmaceutical sector. One of the other goals of the scheme is to build global champions from India who can develop in size and scale using state-of-the-art technologies to penetrate global value chains.
Manufacturers of pharmaceutical products registered in India will be grouped based on their Global Manufacturing Revenue (GMR) to ensure broader implementation of the scheme across the pharmaceutical sector and at the same time to fulfil the objectives of the scheme.
