Lok Sabha Question No. 1096 (UNSTARRED), answered on 2022-07-22
Subject: Export of Drugs and Pharmaceutical Products
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Uday Pratap Singh

## GOVERNMENT OF INDIA

## MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION No. †1096 TO BE ANSWERED ON THE 22 nd  JULY, 2022

## Export of Drugs and Pharmaceutical Products

## †1096. SHRI UDAY PRATAP SINGH:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a)  whether  India's  exports  of  drugs  and  pharma  products  have  registered  an  impressive increase of 103 percent during the last eight years;
- (b) if so, the details thereof;
- (c) the details of the schemes and steps taken by the Government to enable Indian medicines and medical devices to establish a dominant position in the global market;
- (d)  whether  the  Government  has  chalked  out  any  plan  to  promote  domestic  production  of general medicines and medical devices in bulk;
- (e) if so, the details thereof; and
- (f) the details of funds allocated and utilized in Madhya Pradesh under the said scheme during the last three years?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI BHAGWANTH KHUBA)

(a) & (b): The details of India's exports of drugs and pharma products from 2014-15 to 202122 is submitted as below:

| Export of Drugs and Pharmaceuticals   | Export of Drugs and Pharmaceuticals   | Export of Drugs and Pharmaceuticals   |
|---------------------------------------|---------------------------------------|---------------------------------------|
|                                       | Quantity (MT)                         | Value (In Rs Cr)                      |
| 2014-15                               | 7,82,989                              | 90,350                                |
| 2015-16                               | 7,26,585                              | 1,06,276                              |
| 2016-17                               | 6,79,350                              | 1,07,618                              |
| 2017-18                               | 6,65,934                              | 1,06,038                              |
| 2018-19                               | 6,74,084                              | 1,28,028                              |
| 2019-20                               | 5,24,757                              | 1,40,537                              |
| 2020-21                               | 6,42,718                              | 1,74,064                              |
| 2021-22                               | 10,75,906                             | 1,75,040                              |

Source:

DGCIS, Ministry of Commerce and Industry.

(c)  to  (e):  The  Government  of  India  has  taken  several  measures  to  encourage  domestic manufacturing of Pharmaceutical drugs including bulk drugs and medical devices to reduce import  dependence  and  to  establish a dominant  position  in the global  market.  The Programmatic interventions to support Pharma and Medical Devices Industries are as follows;

- i. The Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) in India, with a financial outlay of Rs. 6,940 crores and the tenure from FY 2020-2021 to FY 2029-30, provides for financial incentive for 41 identified products. A total of 51 applicants have been selected under the scheme.
- ii. The Production Linked Incentive Scheme for Pharmaceuticals, with a financial outlay Rs. 15,000 crores and the tenure from FY 2020- 2021 to FY 2028-29, provides for financial incentive to 55 selected applicants for manufacturing of identified products under three categories for a period of six years, including five (5) industry applicants selected for In-vitro diagnostic medical devices.
- iii. The Scheme for Promotion of Bulk Drug Parks , with a financial outlay of Rs. 3,000 crores  and  the  tenure  from  FY  2020-2021  to  FY  2024-25,  provides  for  financial assistance to three States for establishing Bulk Drug Parks. The proposals received are under evaluation.
- iv. The Department has launched the scheme of Strengthening of Pharmaceutical Industry (SPI), with a financial outlay of Rs. 500 crores and the tenure from FY 2021-2022 to FY 2025-26 and this scheme has three components, to provide infrastructure support for pharma MSMEs in clusters and to address the issues of technology upgradation of individual pharma MSMEs.
- v. Under the scheme 'Promotion of Medical Devices Parks' , final approval for financial assistance of Rs. 100 crore each, has been given to the States of Uttar Pradesh, Tamil Nadu, Madhya Pradesh and Himachal Pradesh for establishment of common facilities in their Medical Device Parks.
- vi. Further, under the sub-scheme 'Assistance to Medical Device Industry for Common Facility Centre' , grant-in-aid of ₹ 25 crore was provided to Andhra Pradesh Medtech Zone Ltd. (AMTZ), Andhra Pradesh for establishment of Common Facility for Super conducting magnetic coil testing and research facility
- vii. The Production Linked Incentive (PLI) Scheme for Promoting Domestic Manufacturing of Medical Devices , with a financial outlay of Rs.3,420 Cr and with the tenure from FY 2020-21 to FY 2027-28, provides for financial incentives to selected companies at the rate of 5% of incremental sales of medical devices manufactured in India and covered under the four Target segments of the scheme, for a period of five (5) years.  A total of 21 Applicants have been selected under the scheme.

The non-schematic interventions are as follows:

- i. In order to attract investments in this sector, the Government has allowed 100% foreign direct  investments  (FDI)  in  medical  devices  sector.  Similarly,  the  Government  has allowed 100% FDI in pharma sector for greenfield projects under automatic route. For the brownfield projects, upto 74%, FDI investments are allowed under automatic route and beyond 74% to 100%, FDI investments are allowed under government approval route.
- ii. To redress the specific challenges of the MedTech Industry, in view of the diversity and multi-disciplinary nature of the sector, the institutional mechanism of Standing Forum of Medical Devices Associations, has been set up to deliberate on various issues with all the stakeholders including regulators.
3. (f): Madhya Pradesh has been selected under the Scheme for Promotion of Medical Device Parks. Rs. 30 crores have been released to the state under the scheme as first installment.