Local Manufacturing Of 35 APIs Under PLI Scheme Underway As India Seeks Atmanirbharta In Pharma Sector By Reducing Imports From China

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 for chemicals and fertilisers Mansukh Mandaviya said on Tuesday (Mar 29).

“Under the production-linked incentive (PLI) scheme, 32 new plants for the production of APIs (Active Pharmaceutical Ingredients) have been set up and production has now started in 35 of the 53 identified APIs," Mandaviya added.

India has a 90 percent dependence on 35 APIs, which used to be imported earlier. However, India has now started manufacturing these APIs under the PLI scheme, the minister stated.

“Under the scheme, the government is providing viability gap funding to reduce dependence on imports.” he further added.

Over 65 percent of India’s API imports come from China.

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.

(With inputs from PTI)