PLI Scheme Boosts Drug Security and Domestic Production

The PLI scheme will enhance resilience against external shocks, strengthen drug security, and increase the ability to produce critical bulk drugs and higher-value products domestically. The three support schemes revealed by the government will encourage both Indian and international companies to increase investment and manufacturing in the vital bulk drugs and high-value products sectors.

A report by Centrum following a three-day roadshow with pharma and healthcare experts states that the recent policy measures implemented by the Indian government will enhance the Indian pharmaceutical and healthcare industries in the long term. Government programs such as production-linked incentive (PLI) schemes aim to enhance domestic manufacturing and provide protection against external disruptions.

Bulk drug parks will enhance the local manufacturing of essential medications, while the Promotion of Research & Innovation in the Pharma and MedTech sector (PRIP) initiative will support the advancement of AYUSH as a complementary therapy.

The shared infrastructure established through the Bulk drug parks initiative will enhance local manufacturing of vital medications. These parks will lower production expenses, enhance industry competitiveness, and guarantee a reliable supply of top-quality raw materials essential for pharmaceutical manufacturing. It will additionally assist India in becoming self-sufficient and reducing reliance on the import of bulk pharmaceuticals.

The Bulk Drug Park initiative receives significant financial backing from the central government—up to 70 percent of the project expenses in Gujarat and Andhra Pradesh and 90 percent in Himachal Pradesh.