Local manufacturing of 35 APIs started after PLI scheme: Mandaviya

Manufacturing of 35 active pharmaceutical ingredients, which have been imported earlier, has started in India under the production linked scheme for the pharmaceuticals sector, Union minister Mansukh Mandaviya said on Tuesday. These 35 active pharmaceutical ingredients (APIs) are among the 53 APIs, for which India has 90 per cent import dependence.

“The 35 APIs are being manufactured from 32 different manufacturing plants. This will give a boost to AatmaNirbhar Bharat,” Mandaviya, the Minister of Health & Family Welfare and Chemical and Fertilisers, told reporters here.

This would lead to reduction in import dependence of the key raw materials used for producing medicines, he added.

He said there has been a good response from the pharma industry to the PLI scheme and manufacturing of the other APIs is also expected to start in India in due course of time.

Last year, the government had announced the Rs 15,000 crore PLI scheme for the pharmaceutical sector and 55 companies, including Sun Pharmaceutical Industries, Aurobindo Pharma, Dr. Reddy’s Laboratories, Lupin, Mylan Laboratories, Cipla and Cadila Healthcare, had qualified for incentives under the scheme.

The incentives are to be paid for a maximum period of six years to each qualified company depending upon the threshold investments and sales criteria achieved by the applicant.

The products covered under the scheme include formulations, biopharmaceuticals, active pharmaceutical ingredients, key starting material, drug intermediates, and in-vitro diagnostic medical devices, among others.

According to the government, the objective of the PLI scheme is to enhance India’s manufacturing capabilities by increasing investment and production in the pharma sector and contributing to product diversification to high value goods in the pharmaceutical sector.

Also, it aims “to create global champions out of India who have the potential to grow in size and scale using cutting edge technology and thereby penetrate the global value chains”.

China is the world’s largest producer and exporter of APIs and many of the Indian companies depend on imports of the ingredients to produce formulations.

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