The Union Cabinet on Wednesday approved production linked incentive (PLI) scheme for pharmaceutical sector for financial year 2020-21 to 2028-29 to increase investment and production in diversified product categories, and the scheme is expected to bring in investment of Rs 15,000 crore in the sector.
"India exports pharmaceutical products to over 200 countries, but high-end patented drugs are imported. The scheme aims to make Indian pharmaceutical industry globally competitive," Union Minister Ravi Shankar Prasad said while briefing the media on the decisions taken by the Cabinet.
The scheme is expected to promote production of high-value products in the country and increase the value addition in exports. Total incremental sales of Rs 2,94,000 crore and total incremental exports of Rs 1,96,000 crore are estimated during six years from 2022-23 to 2027-28, the government said in a release.
"The scheme is expected to generate employment for both skilled and un-skilled personnel, estimated at 20,000 direct and 80,000 indirect jobs as a result of growth in the sector," it said.
It will promote innovation for development of complex and high-tech products, including products of emerging therapies and in-vitro diagnostic devices, as also self-reliance in important drugs. The scheme is expected to bring in investment of Rs 15,000 crore in pharmaceutical sector.
"The scheme will be part of the umbrella scheme for the development of pharmaceutical industry. The objective of the scheme is to enhance India's manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high value goods in the pharmaceutical sector," the government said.
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