India proposes sops to manufacturers and Aayog scheme to boost bulk drug industry

As India looks to avert a potential drug shortage crisis in the wake of escalating COVID-19 cases in the country, a standing committee set up by the Department of Pharmaceuticals and government think-tank Niti Aayog has proposed a $409 million scheme to boost the bulk drug industry.

The proposal mandates the government to provide incentives to pharma companies which are ready to invest in active pharmaceutical ingredients (APIs) and fermentation units, reports The Pharma Letter’s India correspondent.

While the drug regulatory authority will grant logistics support, the government has said it will look to invest 25% of the project cost, in a bid to boost domestic manufacture of raw materials.