India readies $1.3 billion pharma incentive scheme; aims to be $120 billion industry

Even as China settles down post COVID-19, the Indian pharmaceutical industry is bracing itself for a reduction in profit margins in the short term, given the expected rise in the prices of active pharmaceutical ingredients (API) and key starting materials (KSM). Aiming to reduce import dependency and to attain self-reliance and drug security, the Indian government has decided to provide incentives to the pharmaceutical industry, reports The Pharma Letter’s India correspondent.

Final guidelines for a Production Linked Incentive (PLI) Scheme are being deliberated in government circles, with the government soon to unveil a $1.3 billion plan to boost domestic API and KSM production.

The scheme involves offering PLIs worth $911 million to companies that will invest in domestic manufacturing of critical KSMs required to produce APIs. Another $393 million has been reserved for creating bulk-drug parks in various states.