The Indian government has taken significant towards boosting domestic manufacturing in the pharmaceutical sector and medical devices industry, aiming to reduce import dependence and stimulate economic growth. A press release on these measures was issued on December 6, 2024.
Production Linked Incentive (PLI) Schemes:
A key initiative is the implementation of Production Linked Incentive (PLI) schemes across three crucial segments:
The PLI scheme for Bulk Drugs, with a financial outlay of Rs. 6,940 crore, incentivizes the manufacturing of essential Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs). This scheme has already seen success, with 48 projects selected and 34 commissioned for 25 bulk drugs.
With a budget of Rs. 15,000 crore, the PLI Scheme for Pharmaceuticals focuses on high-value products like patented/off-patented drugs, biopharmaceuticals, complex generics, and anti-cancer drugs. 55 applicants have been selected under this scheme, leading to an impressive Rs. 33,534 crore in investment – exceeding initial projections.
The PLI Scheme for Promoting Domestic Manufacturing of Medical Devices targets high-end medical devices previously imported into India. This scheme, with a total outlay of Rs. 3,420 crore, incentivizes companies to manufacture devices like Linear Accelerators, MRI machines, and CT-Scans domestically. 32 applicants have been selected, with 19 greenfield projects already commissioned for 44 products.
Early Signs of Success
These PLI schemes have yielded positive results in their initial phases. Under the Bulk Drugs scheme, companies have made Rs. 1,330.82 crore in sales, with exports exceeding Rs. 389 crore. This initiative has also generated over 4,241 jobs.
Similarly, the PLI schemes for Pharmaceuticals and Medical Devices have resulted in combined sales of Rs. 8,870.45 crore, including exports worth Rs. 4,233.83 crore. These schemes have also spurred domestic investment, exceeding initial estimates.
