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Centre Approves INR 6,000 Cr Investment for Pharma & Medical Devices under PLI Scheme: Amit Shah

Written by : Jayati Dubey

October 3, 2023

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This investment aims to foster the production of APIs and KSMs, essential components in drug and medical device manufacturing, as part of the government's holistic approach to cultivate a robust ecosystem for the domestic production of these vital healthcare components.

The Indian government has recently approved an investment of INR 6,000 Cr ($812 million) in the pharmaceutical and medical device manufacturing sectors. Union Home Minister Amit Shah announced this development while addressing a gathering at the dedication ceremony of the newly built National Institute of Pharmaceutical Education and Research (NIPER) campus in Gandhinagar.'¯

Per Shah, the Centre has approved an investment of INR 6,000 Cr to 74 pharmaceutical and medical device manufacturing industries.'¯

This investment comes under the production-linked incentive (PLI) scheme and aims to promote the development of cost-effective and sustainable processes for active pharmaceutical ingredients (APIs) and key starting materials (KSMs).'¯

The PLI Scheme for Pharmaceutical Manufacturing

The PLI scheme has been instrumental in promoting the growth of the pharmaceutical manufacturing sector in India. Under this scheme, the government provides financial incentives to eligible companies based on their incremental sales of pharmaceutical products.'¯

The aim is to encourage domestic production, reduce import dependence, and make India a global hub for pharmaceutical manufacturing. 

The PLI Scheme for Medical Device Manufacturing

In addition to the pharmaceutical sector, the PLI scheme has also been extended to the medical device manufacturing sector. This move is significant as it will help develop a robust ecosystem for producing medical devices within the country.'¯

The scheme provides financial incentives to eligible companies based on their incremental sales of medical devices, thereby encouraging domestic manufacturing and reducing reliance on imports.

This investment will encourage the production of APIs and KSMs, which are essential components in manufacturing drugs and medical devices. APIs are the active substances in pharmaceutical products that help treat diseases, while KSMs are the key raw materials used to produce APIs.

The government's holistic approach aims to develop a robust ecosystem for the domestic production of these critical healthcare components. 

The goal is to reduce the country's dependence on imported APIs and KSMs by promoting their local production. This move will make India self-reliant and position it as a major exporter of these essential healthcare components.

Why PLI Is Significant?

The investment in the pharmaceutical and medical device sectors will have several significant benefits for the country. Firstly, it will reduce the reliance on imports and enhance India's self-sufficiency in producing APIs and KSMs. This will contribute to the overall growth and development of the healthcare industry. Additionally, it will create employment opportunities, boost innovation, and attract further investments in the sector. 

The Indian government has taken several initiatives to promote self-reliance in the healthcare sector. The National Medical Device Policy 2023 aims to make India self-sufficient in medical devices and has provisions for the export of these devices as well.'¯

The government has also established three bulk drug parks with a total cost outlay of INR 3000 Cr to boost the domestic manufacturing of pharmaceutical raw materials. 

The Role of NIPER

The National Institute of Pharmaceutical Education and Research (NIPER) plays a crucial role in developing the pharmaceutical sector. With seven campuses across India, NIPER provides education and research in pharmaceutical sciences.'¯

The newly built campus in Gandhinagar is the third fully functional campus, with construction work underway for four more campuses. NIPER has significantly contributed to the industry through its research papers, patents, and collaborations with the pharmaceutical sector.

In a recent development, Dr Mansukh Mandaviya, Union Health Minister of India, unveiled the National Policy on Research and Development and Innovation in the Pharma-MedTech Sector. This policy is accompanied by the introducing of the Scheme for the Promotion of Research and Innovation in the Pharma-MedTech Sector (PRIP).

Dr Mandaviya highlighted that the scheme aims to make India a prominent and valuable contributor to the global pharmaceutical market. It intends to achieve this by ensuring high-quality, easy access, and affordable healthcare solutions.'¯


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