The PLI booster: Pharma

The production-linked incentive (PLI) scheme was introduced by the government last year in order to give impetus to domestic manufacturing and cut down on our import bills. The scheme gives the PLI licensee companies incentives on incremental sales of products that are manufactured in domestic units. The aim here is to create a scale of production by encouraging foreign companies to set shop in India and local companies to set up or expand their existing manufacturing facilities. PLI beneficiary: Drug manufacturing The Indian pharmaceutical industry is the world's largest provider of generic medicines. However, it still relies on China for around 60-70 per cent of its API and drug intermediates needs. APIs, or active pharma ingredients (also known as bulk drugs), are basically raw materials for medicines. And India's import dependence for them was felt ever more strongly during the COVID-led supply disruptions last year. This made the government want to promote domestic production of these drugs and it thus came out with a Rs 6,000 crore PLI scheme for the drug manufacturers. Under the six-year long scheme, the government will provide financial incentives to the manufacturers of 41 identified critical bulk drugs, divided into two categories - fe