Approval accorded under PLI Scheme for Promotion of Domestic Manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs).
Indian pharmaceutical industry:
- It is the 3rd 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.
About the PLI scheme:
- To make India a manufacturing hub, the government had initially announced the PLI scheme for mobile phones, pharma products, and medical equipment sectors.
- Notified on April 1, 2020, as a part of the National Policy on Electronics.
- It proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain.
- In November 2020, the Union Cabinet gave its approval to introduce the Production-Linked Incentive (PLI) Scheme in 10 more sectors for enhancing India’s manufacturing capabilities and exports (Atmanirbhar Bharat).