Government Initiatives
The Government of India has set up several schemes to further strengthen the pharmaceutical industry. The Strengthening of Pharmaceutical Industry (SPI) scheme focuses on bolstering the existing infrastructure facility, with a total financial outlay of Rs. 500 crore (US$ 64.5 million).
The Production Linked Incentive (PLI) scheme supports domestic manufacturing of 41 critical pharmaceutical ingredients with a total outlay of Rs. 6,940 crore (US$ 834 million) until 2029-30. As of September 2023, 48 projects were approved, attracting Rs. 3,938.57 crore (US$ 473 million) investment and creating 9,618 jobs. 27 projects have been commissioned, with Rs. 3,063 crore (US$ 368 million) grounded investment and 2,777 jobs. In FY23, Rs. 4.34 crore (US$ 0.52 million) incentive was released to eligible applicants.
Production Linked Incentive (PLI) schemes for pharmaceuticals, a critical key starting material (KSMs), medical devices, bulk drug parks, etc. are introduced to encourage manufacturers. Through the PLI scheme, the Government of India hopes to increase investment and production in the Indian pharmaceutical sector. The scheme is expected to generate incremental sales of Rs. 2,94,000 crore (US$ 37.09 billion) in six years, starting from 2022-23 to 2027-28.
For the promotion of the Indian pharmaceutical industry, the Pharmaceutical Promotion and Development Scheme (PPDS) was introduced in 2017 with financial support for conducting seminars, conferences, exhibitions and delegations.
Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) was implemented to facilitate small and medium-sized enterprises (SMEs) to attain WHO-GMP norms. This will enable them to compete on a global scale.
The Pradhan Mantri Bhartiya Janaushadhi Pariyojana’ (PMBJP), was originally launched in 2008 as the “Jan Aushadhi Scheme”. This scheme aims to make quality affordable generic medicines available to all.