The Ministry of Chemicals & Fertilisers in India has rolled out the Schemes for ‘Strengthening Pharmaceuticals Industry’ (SPI) to boost the role of MSMEs (Micro, Small, and Medium Enterprises) in the pharmaceutical sector. Supporting technology improvement, research innovations, and cost competitiveness, these schemes have the potential to solidify India’s standing in the global Pharma industry.
About the Strengthening of Pharmaceutical Industry Scheme
The SPI scheme encourages technology upgradation within the pharmaceutical sector’s MSME units via credit linked capital and interest subsidy. In addition, it offers support, up to Rs 20 crore each, for shared facilities like Research centers, testing laboratories, and Effluent Treatment Plants (ETPs) within Pharma clusters.
MSME units can opt between Capital subsidy or Interest subvention, with Small Industries Development Bank of India (SIDBI) acting as the Project Management Consultant for scheme implementation.
Components of the Scheme
The SPI scheme features three main components: The Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS), Assistance to Pharma Industries for Common Facilities Scheme (API-CF), and the Pharmaceutical and Medical Devices Promotion and Development Scheme (PMPDS).
The PTUAS aids pharmaceutical MSMEs in upgrading their technologies, offering a capital subsidy of 10% on loans up to Rs 10 crore or an interest subvention of up to 5% on reducing balance basis.
API-CF aims at strengthening the existing pharmaceutical clusters for sustainable growth by providing assistance up to 70% of the approved project cost or Rs 20 crore, whichever is less.
PMPDS involves the creation of study reports on significant topics for the Indian pharma and medical device industry, aiming at crafting a database for these sectors.
Objectives and Significance of the Scheme
The SPI scheme seeks to enhance India’s capabilities in the pharmaceutical sector by increasing competitiveness in quality and cost, and integrating Indian pharma MSMEs into the global supply chain.
By strengthening existing infrastructural facilities, the scheme potentially positions India as a global leader in the Pharma Sector. Besides, it promises to support existing Pharma clusters and MSMEs across the country by improving their productivity, quality, and sustainability. Simultaneously encouraging research, innovation, and investment, the schemes will foster the development of products and ideas for the future.
Other Schemes Related to the Pharma Sector
Two other significant government initiatives related to the pharmaceutical sector are the Promotion of Bulk Drug Parks Scheme and the Production Linked Incentive (PLI) Scheme.
The Promotion of Bulk Drug Parks Scheme has an objective of developing three mega Bulk Drug parks in India in partnership with States to decrease the manufacturing cost of bulk drugs and reduce dependency on other countries. The PLI Scheme promotes domestic manufacturing of critical Key Starting Materials (KSMs)/Drug Intermediates and Active Pharmaceutical Ingredients (APIs).
These initiatives are crucial to ensure a continuous supply of drugs and deliver affordable healthcare to citizens.
Protection of Traditional Knowledge of Medicine
An example of how the Government of India is safeguarding traditional medical knowledge from patenting by pharmaceutical companies emerged in the UPSC Civil Services Examination, Previous Year Questions (PYQ) of 2019.
Last Modified: February 15, 2024