Indian Economy News

PLI: Propelling India towards 'atmanirbhar' future in pharma and Meditech

  • IBEF
  • March 11, 2024

The pharmaceutical and medical device sectors are integral to a country's healthcare infrastructure and crucial for preventive and curative healthcare systems. Recognizing their paramount importance, particularly considering the COVID-19 pandemic, establishing a stable policy environment to ensure long-term self-reliance in indigenous drug and medical device manufacturing is imperative. The Indian pharmaceutical industry has been a consistent provider of high-quality and affordable medical products, with its manufacturing output more than doubling from around US$ 28.3 billion (Rs. 2.34 trillion) in 2013-14 to approximately US$ 70.1 billion (Rs 5.8 trillion) in 2021-22. This remarkable growth, with a compound annual growth rate (CAGR) of 12%, exceeds all other manufacturing sectors in the Indian economy and stands as a global benchmark within the drug and pharmaceutical domain.

In alignment with the "Atmanirbhar Bharat" vision, the Indian government has launched production-linked incentive (PLI) schemes to boost manufacturing, positioning India as a contributor to global value chains. These initiatives strategically address the revaluation of global supply chains in medical products due to the pandemic and geopolitical shifts. Additionally, the Department of Pharmaceuticals has successfully implemented a US$ 839.1 million (Rs 6,940 crore) PLI scheme to reduce import dependence, promoting domestic manufacturing of critical bulk drugs. With 48 approved projects committing to a production capacity of 89,545 million tons per annum, this marks a significant step towards enhancing domestic production of key bulk drugs, ensuring self-sufficiency in the pharmaceutical sector.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.