New Delhi : The three production linked incentive (PLI) schemes in the pharmaceuticals and medical devices sector have attracted a total investments to the tune of Rs. 21,861 crore till March, 2023, with majority of the investments going into the PLI scheme for pharmaceuticals, according to the Central government.
The Government of India has launched three production linked incentive schemes, – bulk drugs (in the year 2020), medical devices (2020) and pharmaceuticals (2021), to attain self-reliance, boost domestic manufacturing and attract large investments in the sector.
PLI scheme for pharmaceuticals has attracted investments to the tune of Rs. 18,618.09 crore till March, 2023, while the scheme for bulk drugs has seen investments of Rs. 2,405.09 crore and the scheme for medical devices an investment of Rs. 837.23 crore.
The PLI scheme for pharmaceuticals has been announced with a financial outlay of Rs. 15,000 crore over a period of six years. In the financial year 2022-23, being the first year of production for the PLI scheme, the Department of Pharmaceuticals has earmarked Rs. 690 crore as the budget outlay.
Under the PLI scheme for bulk drugs with a financial outlay of Rs. 6,940 crore, the objective is to boost domestic production of 41 select critical bulk drugs in the country. So far, 51 projects have been selected for the 34 notified bulk drugs. Out of this, 22 projects have been commissioned till date (for the projects of fermentation based APIs, the production year as per the scheme guidelines is coming FY 2023-24 only). Incentive rates for fermentation-based products are 20% and chemical-based products are 10% for initial four years of the scheme and it will taper for subsequent two years.
Under the PLI scheme for medical devices with a financial outlay of Rs. 3,420 crore, a total of 21 applicants have been selected. The objective of this scheme is to establish domestic manufacturing capability of high-end medical devices under four target segments – cancer care/radiotherapy medical devices; radiology & imaging medical devices (both ionizing & non-ionizing radiation products) and nuclear imaging devices; anaesthetics & cardio-respiratory medical devices including catheters of cardio respiratory category & renal care medical devices; and all implants including implantable electronic devices.
The medical devices being manufactured under the PLI scheme include high-end medical devices such as CT scan, MRI Coil, Linear Accelerator (LINAC), C-Arm, ultrasonography, dialysis machine, intensive care ventilators, knee implants, hip implants, heart valves, stents, dialyzer etc. Some of these medical devices are being domestically manufactured for the first time in the country. Thus, the PLI scheme has paved the way for an ecosystem for domestic manufacturing of these high-end medical devices, said the ministry of chemicals and fertilisers earlier.