Schemes For Promotion of Pharmaceutical Industry

1 INTRODUCTION

• India, known as the “Pharmacy of the World”, plays a critical role in supplying medicines around the globe. The country has readily supplied life-saving drugs during the ongoing COVID-19 pandemic. The pharma exports from India reach more than 200 nations in the world. The Pharmaceutical Industry in India (including devices) is valued at about USD 41 Bn.
• The Government of India has taken several measures to promote the sector some of which include the following schemes that have been recently approved:

1. Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of Bulk Drugs (Key Starting Materials (KSMs)/ Drug Intermediates (DIs)/ Active Pharmaceutical Ingredients (APIs))
2. Promotion of Bulk Drug Parks

      ► Read more about Schemes for Promotion of Pharmaceuticals Manufacturing

Sources: 1, 2

2 PLI SCHEME FOR BULK DRUGS

• The Production Linked Incentive (PLI) scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) has been notified to boost domestic manufacturing of bulk drugs and reduce import dependence.
• Under the scheme, financial incentives will be provided on incremental sales of 41 products given in the guidelines. The incentives will be provided for a period of 6 years in the following manner:
  • For Fermentation based products
    • 20% incentive for FY 2023-24 to FY 2026-27
    • 15% incentive for 2027-28  5% incentive for 2028-29
  • For chemical synthesis based products
    • 10% incentive for FY 2022-23 to FY 2027-28
• The applicant companies will be required to meet minimum thresholds of investment and meet the eligibility criteria to receive incentives under the scheme which has a total outlay of about INR 6,940 Cr.

► Gazette Notification

► Guidelines 

► Read more about the PLI Scheme

3 PROMOTION OF BULK DRUG PARKS

• The Scheme for Promotion of Bulk Drug Parks has been notified to develop common infrastructure facilities (CIF) for bulk drug production units to reduce manufacturing costs. This will also help in reducing the impact on environment through innovative waste management systems installed in the parks.
• Under the scheme, financial assistance will be provided for the creation of CIFs in three bulk drug parks selected under the scheme.  The assistance will be 90% of the project cost in northeastern states and hilly states while it will be 70% in other states. A bulk drug park project proposed by a state and selected under the scheme will be implemented by a State Implementation Agency (SIA) and will receive a maximum assistance of INR 1000 cr.
• The scheme will be valid for a period of 5 years from FY 2020-21 to FY 2024-25 and has a total outlay of INR 3000 Cr.

► Gazette Notification 

► Guidelines 

► Read more about the Scheme