Pharma Sector: Approvals Accorded Under PLI Scheme For Rs 348 Crore Investment In Drug Intermediates And APIs

Pharma Sector: Approvals Accorded Under PLI Scheme For Rs 348 Crore Investment In Drug Intermediates And APIsA Representative Image

In a boost to local manufacturing and reduce import dependence, approvals have been accorded to 16 applicants under Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs) in the country.

The setting up of these 16 plants will lead to a total committed investment of Rs 348.70 crore and employment generation of about 3,042 by the companies.

The commercial production of these plants is projected to commence from 1 April, 2023 onward, the Ministry of Chemicals and Fertilizers said in a statement.

The prime objective of the PLI scheme is to make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale and ensuring efficiencies.

It is designed to create a complete component ecosystem in India and make India an integral part of the global supply chains. The scheme is expected to attract global investments, generate large scale employment opportunities and enhance exports substantially.

The Indian pharmaceutical industry is the third largest in the world by volume. It has high market presence in several advanced economies such as the US and EU. The industry is well known for its production of affordable medicines, particularly in the generics space.

However, the country is significantly dependent on the import of basic raw materials, viz., bulk drugs that are used to produce medicines. In some specific bulk drugs, the import dependence is 80 to 100 per cent.