PLI Programmes in Pharma Sector Attracts Investment Of Rs. 21,861 Crore till March, 2023

PLI Programmes in Pharma Sector Attracts Investment Of Rs. 21,861 Crore till March, 2023 The Government of India has launched three production linked incentive schemes, – bulk drugs (in the year 2020), medical devices (2020) and pharmaceuticals (2021), to attain self-reliance, boost domestic manufacturing and attract large investments in the sector. The PLI programme for pharmaceuticals has received investments totaling Rs. 18,618.09 crore through March 2023, while the scheme for bulk medications has received investments totaling Rs. 2,405.09 crore and the scheme for medical equipment has received investments totaling Rs. 837.23 crore.

The pharmaceutical PLI scheme has been announced, with a cash outlay of Rs. 15,000 crore spread over six years. The Department of Pharmaceuticals has budgeted Rs. 690 crore for the fiscal year 2022-23, the first year of production for the PLI plan. The goal of the PLI scheme for bulk medications, which has a financial outlay of Rs. 6,940 crore, is to increase domestic production of 41 key bulk drugs in the country. So far, 51 projects for the 34 notified bulk medications have been chosen. So far, 22 projects have been commissioned (the production year for fermentation-based API projects, according to scheme parameters, is only FY 2023-24).

For the first four years of the plan, incentive rates for fermentation-based products are 20% and 10% for chemical-based products, with a two-year taper. The medical devices being manufactured under the PLI scheme include high-end medical devices such as CT scan, MRI Coil, Linear Accelerator (LINAC), C-Arm, ultrasonography, dialysis machine, intensive care ventilators, knee implants, hip implants, heart valves, stents, dialyzer etc. Some of these medical devices are being domestically manufactured for the first time in the country. Thus, the PLI scheme has paved the way for an ecosystem for domestic manufacturing of these high-end medical devices, said the ministry of chemicals and fertilisers earlier.