Production Linked Incentive Scheme For Pharmaceuticals

Production Linked Incentive Scheme For Pharmaceuticals

Part of: GS Prelims and GS- III – Economy; Manufacturing sector

In news

• The Union Cabinet has approved Production Linked Incentive (PLI) Scheme  for Pharmaceuticals for Financial Year 2020-21 to 2028-29.

Key takeaways 

• The Scheme is expected to bring in investment of Rs.15,000 crore in the pharmaceutical sector.
• It will be part of the umbrella scheme for the Development of the Pharmaceutical Industry.
• Objective: (1) To enhance India’s manufacturing capabilities by increasing investment; (2) Product diversification to include high-value goods. 
• Target Groups: The manufacturers who are registered in India will be grouped based on their Global Manufacturing Revenue (GMR) to ensure wider applicability of the scheme
• Quantum of Incentive: 15,000 crores.
• Category of Goods covered:

1. 1. Category 1: Biopharmaceuticals; Complex generic drugs; Patented drugs or drugs nearing patent expiry; Cell-based or gene therapy drugs; Orphan drugs; Other drugs as approved.
   2. Category 2: Active Pharmaceutical Ingredients, Key Starting Materials, Drug Intermediates.
   3. Category 3: Drugs not covered under Category 1 and 2.

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