The Indian government recently inaugurated 40 greenfield projects under the Production Linked Incentive (PLI) scheme for bulk drugs and medical devices. This aims to boost domestic manufacturing and reduce import dependence in the pharmaceutical sector.
- On March 3rd 2024, the Union Health Minister inaugurated 27 greenfield projects for manufacturing bulk drugs and 13 projects for medical devices under the PLI scheme.
- With an outlay of INR 15,000 crores, the PLI scheme provides financial incentives to eligible manufacturers of pharmaceuticals and medical devices for incremental sales over the base year.
Key Highlights
- The inaugurated greenfield projects are expected to promote domestic manufacturing of critical bulk drugs and medical devices.
- This will help India become self-reliant and reduce import dependence in the pharma sector.
- The scheme is attracting investment and enhancing production in high value goods.
Pharmaceutical Industry in India
- Ranks 3rd globally in pharmaceutical production volume
- Accounts for 20% of global generic drug supply
- Valued at $50 billion, exports account for 50% of production
- Projected to reach $65 billion by 2024
Support from Government
Schemes
PLI Scheme for Pharmaceuticals
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- Budget: INR 15,000 crores
- Approved 55 applicants
- Incentives for 138 products
PLI Scheme for Medical Devices
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- Budget: INR 3,420 crores
- Approved 26 applicants
Policies
- National Pharmaceutical Policy (2023 draft)
- Vision Pharma 2047
- Scheme for Bulk Drug Parks
- Scheme for Strengthening Pharma Industry
Key Statistics of Pharma Industry in India
| Parameter | Value |
| Global rank in production volume | 3rd |
| Share in global generic drug supply | 20% |
| Current market size | $50 billion |
| Projected market size by 2024 | $65 billion |
| Exports as share of production | 50% |
About PLI Projects in India
- The PLI scheme for pharmaceuticals has an outlay of Rs.15,000 crore. With this push, domestic production is expected to rise by $5 billion in the next 5-6 years
- The medical devices sector PLI scheme has received huge response with approved proposals of Rs 10,500 crores against a total outlay of Rs 3,420 crores
- The bulk drugs parks scheme aims to enhance India’s capacity for production of 53 critical bulk drugs. It has received investment commitment of Rs 47,944 crores so far
- Under the scheme for strengthening pharmaceutical industry (SSPI), over 50 applications have been approved for enhancing manufacturing capabilities
- The PLI scheme will help bring in investments of Rs.1.5 lakh crore in the pharmaceutical sector
- It is expected to promote export of formulation and API in large numbers while discouraging import
- India currently meets only 58% of its API demand locally. With PLI schemes, import dependency is projected to come down significantly
- The inaugurated units have potential to produce APIs worth about Rs 46,000 crores and medical devices worth Rs 58,000+ crores annually
- Increased API and medical devices production will save foreign exchange and create several direct and indirect jobs
- PLI scheme applicants have committed 2.25 lakh jobs, including 55,000 direct jobs across roles like production, quality, engineering, and R&D
- The PLI scheme complements other visionary initiatives like product-specific clusters under NMP 2023
- It will enable end-to-end manufacturing spanning drug intermediates, active ingredients, formulations and medical devices
- Along with self-reliance and import substitution, the objective is to position India as a global pharma innovation hub
- Policy interventions aim to build quality culture through adoption of ICH Q8 to Q12 guidelines for product development
The PLI schemes in pharmaceuticals and medical devices will boost domestic manufacturing, attract investments and enable self-reliance. Along with other policy initiatives, it will propel India’s vision to become a global leader in end-to-end drug manufacturing.
