Production Linked Incentive (PLI) Scheme for Pharmaceutical Sector

Union cabinet approved Production Linked Incentive (PLI) Scheme for Pharmaceutical sector on February 24, 2021. Union Minister, Ravi Shastri  announced the scheme details. The main aim of this scheme is to boost high-end medicine production and exports. It will include innovating and developing high tech medicinal products, emerging therapies and in-vitro diagnostic devices. It also tends to reduce the imports in pharma sector. Thereby more employment opportunities will be generated. It aims at making Indian pharmaceutical industry globally competitive. This is a crucial step towards Aatmanirbhar Bharat and it empowers the same vision.

Scheme Overview:

List of scheme lunched by Central Government

Scheme Objectives and Benefits:

• The main objective of the scheme is to increase production of high-end medicines in the country
• This scheme will enable to generate employment opportunities in pharma as well various other aligned sectors of the economy
• It aims at reducing the imports and diverging the same medicines for production in India
• This scheme will also enable increased productivity and innovation thereby making Indian pharmaceutical sector globally competitive
• In the long run, it will impact increased economic growth ad development
• It is a crucial step towards Aatmanirbhar Bharat and Make in India mission

Scheme Details:

• Production Linked Incentive (PLI) scheme for Pharmaceutical sector is approved by the Union cabinet on February 24, 2021
• This scheme focuses to boost the pharmaceutical sector thereby increasing production and making Indian pharmaceutical sector globally competitive
• This scheme will be in operation from financial year 2020-21 to 2028-29
• It will enable increased investment in the pharmaceutical sector
• It aims at increasing the production of high-end medicines in the country
• In the given period total incremental sales are aimed at Rs. 2,94,000 crores and total incremental exports are aimed at Rs. 1,96,000 crores
• It also tends to increase 20,000 direct employment opportunities and about 80,000 indirect opportunities in the aligned sectors
• This scheme will enable a wide scope for new ideas and new innovations in the medicinal sector
• It will boost pharmaceutical sector thereby aiming to curb imports and increase exports
• It will lead to increased economic growth in the long run
• PLI scheme is a vital step towards Aatmanirbhar Bharat and Make in India mission
• Under this scheme, estimated investment in the pharmaceutical sector is about Rs. 15,000 crores