Pharma PLI scheme to have export generation potential of Rs 1,96,000 crore over a period of 6 years

New Delhi: “The Government approved Production Linked Incentive (PLI) scheme for pharmaceuticals has an estimated export generation potential of Rs 1,96,000 crore over a period of 6 years in all the three categories of products under the scheme which includes high value products as well,” mentioned Union Minister of Chemicals and Fertilizers, Mansukh Mandaviya in the Parliament.

The PLI scheme estimated the investment potential of around Rs 15,000 crore and the generation of employment potential of 20,000 direct and 80,000 indirect jobs as a result of the growth in the sector over the period of the scheme.

At present low value generic drugs account for the major component of Indian exports. As far as patented drugs are concerned, the same are imported as well as manufactured in the country. The scheme incentivizes the manufacturing of patented drugs and other high value drugs at an incentive rate of 10% of incremental sales which is highest amongst the product categories under the scheme.

PLI scheme for pharmaceuticals was notified in the Gazette on March 03, 2021. The Operational Guidelines containing the details of the scheme on each aspect and the process of making applications were issued on June 01, 2021. These operational Guidelines can be found on the website of the Department.