Lok Sabha Question No. 1364 (UNSTARRED), answered on 2021-07-27
Subject: PLI Scheme in Pharmaceuticals Sector
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Bidyut Baran Mahato, Ravi Kishan Shukla, Sanjay Sadashivrao Mandlik, Ravindra Kushawaha, Subrata Pathak, Shrirang Appa Barne, Chandra Sekhar Sahu, Sudheer Gupta, Prataprao  Jadhav

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARR ED QUESTION No. 1364 TO BE ANSWERED ON THE 27 th  July, 2021

## PLI Scheme in Pharmaceuticals Sector

## 1364.   SHRI BIDYUT BARAN MAHATO:

SHRI RAVI KISHAN:

SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI RAVINDRA KUSHWAHA:

SHRI SUBRAT PATHAK:

SHRI SHRIRANG APPA BARNE:

SHRI CHANDRA SEKHAR SAHU:

SHRI SUDHEER GUPTA:

SHRI PRATAPRAO JADHAV:

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

- (a)  whether  the  Government  has  approved  Production  Linked  Incentive  Scheme  (PLI)  for Pharmaceuticals sector in the country;
- (b) if so, the details and the salient features of PLI scheme;
- (c) whether the Government has made any assessment to find out the expected promotion of the production of high value products, which are likely to be added in exports of the country in the coming years;
- (d) if so, the details thereof;
- (e) the details of the investments, employment opportunities which are likely to be increased in the country after the implementation of PLI Scheme in Pharmaceuticals sector;
- (f) whether at present, low value generic drugs account for the major component of Indian exports, while a large proportion of the domestic demand for patented drugs is met through imports; and (g) if so, the manner in which the existing trend is likely to be change from the scheme?

## ANSWER

## MINISTER IN THE MINISTRY OF CHEMICALS & FERTILIZERS

(SHRI MANSUKH MANDAVIYA)

(a) to (b): Yes, Sir. The Government has approved the Production Linked Incentive Scheme for Pharmaceuticals on 24.02.2021 which was notified in the Gazette on 03.03.2021. The Operational Guidelines  containing  the  details  of  the  scheme  on  each  aspect  and  the  process  of  making applications were issued on 01.06.2021. These operational Guidelines can be found on the website of the Department and can be accessed at https://pharmaceuticals.gov.in/schemes.

- (c) to (d): The scheme estimated the export generation potential of Rs 1,96,000 crore over a period of  6  years  in  all  the  three  categories  of  products  under  the  scheme  which  includes  high  value products as well.
- (e)  The  PLI  scheme  estimated  the  investment  potential  of  around  Rs  15,000  crore  and  the generation of employment potential of 20,000 direct and 80,000 indirect jobs as a result of the growth in the sector over the period of the scheme.
- (f) to (g): Yes Sir, at present low value generic drugs account for the major component of Indian exports. As far as patented drugs are concerned, the same are imported as well as manufactured in the country. The scheme incentivizes the manufacturing of patented drugs and other high value drugs  at  an  incentive  rate  of  10%  of  incremental  sales  which  is  highest  amongst  the  product categories under the scheme.

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