PLI scheme: Industry R&D focus, widening bats for of scope

Aimed at achieving Aatma Nirbharta (self-reliance) in pharmaceutical manufacturing, the production-linked incentive (PLI) scheme is welcome by all, but with a few additional expectations

- NAGESH JOSHI

With $42 billion in revenues, the Indian pharmaceutical industry is ranked 14th in the world in value terms. Being home to more than 10,000 manufacturing units and about 3,000 drug companies, India also ranks third in the world in pharmaceutical production by volume. However, the Indian pharmaceutical industry, although big from any angle you look at it, is heavily dependent on China for the supply of active pharmaceutical ingredients (APIS) and intermediates.

To illustrate, as per the statistics from the Ministry of Chemicals and Fertilisers, in the financial year 2021-22, the import of bulk drugs and drug intermediates from China to India was 23,273 crore (and 2.65 lakh MT in volume), nearly 66 percent of the total imports. During the same period, our total imports stood at 35,249 crore, or 4 lakh MT in volume.

To further India's goal of Aatma-Nirbharta (self-reliance) and reduce the dependency on imports of essential bulk drugs, the Government of India launched a production-linked incentive (PLI) scheme for the pharmaceutical sector in the year 2020.

Originally introduced to boost domestic manufacturing of electronic goods by the Ministry of Electronics and Information Technology in April 2020, the PLI scheme today covers 14 industry verticals including the pharmaceuticals sector.

Stating that the industry response has been good so far, Lokesh Harjani, Founder & CEO, Onspot Solutions, informs that many pharmaceutical companies have applied for registration under the scheme. "More than 300 organizations have applied, and about 50 organizations have already received incentives."

 NUTS AND BOLTS OF PLI