As a major boost to domestic manufacturing of key starting materials (KSMs), drug intermediates and active pharmaceutical ingredients (APIs), Union ministry of chemicals and fertilisers has granted approvals to 16 firms to manufacture drugs under the production linked incentive (PLI) scheme to incentivise domestic pharmaceutical sector.
APIs like such as valsartan, losartan, levofloxacin, sulfadiazine, ciprofloxacin, and ofloxacin among others, will be manufactured under the PLI scheme.
In total, 215 applications were received until February 2021 under the PLI scheme for the 36 products spread across the 4 target segments.
The Union cabinet recently cleared the PLI scheme for the domestic pharmaceutical sector for financial years 2020-21 to 2028-29. About Rs. 15,000 crore worth of incentives is envisaged to be provided under the scheme, with total incremental sales worth Rs. 2.94 trillion and incremental exports of Rs. 1.96 trillion expected during the six years.
“The setting up of these 16 plants will lead to total committed investment of Rs. 348.70 crore and employment generation of about 3,042 by the companies. The commercial production of these plants is projected to commence from 1 April 2023 onwards," ministry of chemicals and fertilizers stated.
In order to create global manufacturing base in India for APIs and medical devices by removing sectoral bottlenecks, the PLI schemes were first announced last year with an aim and creating economies of scale to develop complete ecosystems for domestic products.
Centre in February this year had invited global firms to take advantage of the Rs. 1.97 trillion worth of PLI schemes for 13 sectors and expand their manufacturing in India.
The Indian pharmaceutical industry is the third largest in the world, by volume and is worth US$ 40 billion. The country contributes 3.5% of total drugs and medicines exported globally. India exports pharmaceuticals to more than 200 countries and territories including highly regulated markets
