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PLI scheme for pharmaceuticals : An effort to boost domestic production against import dependency

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February 23, 2023 at 12:19:04 PM

Product Linked Incentive, Department of Pharmaceuticals

  • The government of India is focusing on the production of high-value pharmaceuticals and high-end medical devices through indigenous production, with the vision of reducing import dependency. 

  • Under the Atmanirbharta initiative of the Government, the Department of Pharmaceuticals launched the Product Linked Incentive (PLI) scheme for pharmaceuticals in 2021. 

  • The financial outlay under this PLI scheme is Rs.15,000 Cr over a period of six years. 

  • 3 different categories of products are being supported under the scheme, viz, 

  1. Category 1: Biopharmaceuticals; Complex generic drugs; Patented drugs or drugs nearing patent expiry; Cell-based or gene therapy drugs; Orphan drugs; Special empty capsules, Complex excipients 

  2. Category 2: Bulk drugs (except those 41 eligible products notified under PLI Scheme for Bulk drugs) 

  3. Category 3: Drugs not covered under Category 1 and Category 2 such as Repurposed drugs; Autoimmune drugs, anti-cancer drugs, anti-diabetic drugs, anti-infective drugs, cardiovascular drugs, psychotropic drugs, and anti-retroviral drugs, including In vitro diagnostic devices.

  • The Department of Pharmaceuticals (DoP) released the first tranche of incentives under the Product Linked Incentive (PLI) scheme of pharmaceuticals amounting to Rs 166 crore to four selected applicants on 21st February 2023.

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