WHAT IS THE PLI SCHEME FOR PHARMACEUTICALS?
The Production Linked Incentive (PLI) Scheme is a government initiative designed to boost domestic manufacturing of certain products and industries in India. In the pharmaceutical sector, the PLI Scheme was launched in 2020 with the aim of making India a global manufacturing hub for pharmaceuticals and medical devices.
Under the PLI Scheme for Pharmaceuticals, eligible companies can receive financial incentives based on their incremental sales of pharmaceutical products in four categories: generic drugs, biopharmaceuticals, patented drugs, and over-the-counter (OTC) medicines. The incentives are calculated as a percentage of the sales value of the products and are designed to encourage companies to increase their production and sales of pharmaceutical products.
The PLI Scheme is expected to provide a boost to India’s pharmaceutical industry, which is already a major global player in the production of generic drugs. By incentivizing companies to invest in research and development and increase their production of high-value drugs and medical devices, the government hopes to position India as a leader in the global pharmaceutical market.
In addition to financial incentives, the PLI Scheme for Pharmaceuticals also includes measures to encourage the adoption of environmentally sustainable practices in the manufacturing of pharmaceuticals and medical devices. This includes incentives for companies that invest in green technologies, such as renewable energy and waste management systems.
The PLI Scheme for Pharmaceuticals is part of the government’s broader “Atmanirbhar Bharat” (self-reliant India) initiative, which aims to promote domestic manufacturing and reduce India’s dependence on imports. By incentivizing companies to invest in research and development and increase their production of pharmaceutical products, the government hopes to create new job opportunities and boost economic growth in the country.
Overall, the PLI Scheme for Pharmaceuticals is a significant initiative that has the potential to transform India’s pharmaceutical industry and make the country a global leader in the production of pharmaceuticals and medical devices. By providing financial incentives and encouraging sustainable practices, the government is creating an environment that is conducive to growth and innovation in the pharmaceutical sector.