Government Considering New PLI Scheme to Boost Pharma Sector

The government plans to introduce a new Production Linked Investment (PLI) scheme for the pharmaceutical sector to increase the production of key chemicals to produce active pharmaceutical ingredients (APIs). This is intended to reduce the dependence of Indian companies on China for sourcing, sources told Moneycontrol.

“The entire medicine value chain is currently not covered by the PLI as these ingredients are still being imported from China,” a person familiar with the development told Moneycontrol.

India's dependence on Chinese pharmaceutical imports is 55-66% and is expected to remain high in the coming days, according to a credit rating agency CareEdge report.

"The new PLI will arrive after the formation of the new government and will be part of the Union Budget," he said.

According to the Care Ratings Report, China's import of pharmaceuticals increased in terms and value by 64% and 62% in FY14 and 71% and 75%, respectively, in FY23. In FY2014, imports from China reached $2.1 billion, which increased to $2.6 billion in FY2019 and $3.4 billion in FY23.