Union Govt Approves 15,000 Crore PLI Boost for Pharma Manufacturing

The Union government has sanctioned a financial allocation of Rs 15,000 crore for the Production Linked Incentive (PLI) scheme in pharmaceuticals, intended to enhance domestic production. In a written response to Lok Sabha, Union Minister of State for Chemicals and Fertilizers Anupriya Patel stated that the government has implemented various initiatives to promote domestic production in the pharmaceutical industry.

This encompasses Bulk Drugs and Medical Devices that will aid in decreasing import reliance, enhancing local production, and drawing significant investments.

Patel announced that the PLI scheme aimed at enhancing domestic production of essential Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) in India (referred to as the PLI scheme for Bulk Drugs) has received approval with a budget allocation of Rs. 6,940 crores.

The program, designed to offer financial rewards for the production of notified products, will be implemented from FY 2022-2023 through FY 2028-29.

The PLI program for pharmaceuticals, having a budget allocation of Rs. According to Patel, "15,000 crores, for the FY 2022-23 to FY 2027-28 period, offers a financial incentive to 55 chosen applicants for producing specific products across three categories for six years."

Under this program, Patel observed that high-value pharmaceutical items like patented or off-patented medicines, biopharmaceuticals, complex generics, cancer treatments, auto-immune therapies, orphan drugs, and so on are produced.