Pharma PLI scheme can generate Rs 1.96 lakh crore export over 6 years: Union Health Minister
New Delhi: The production linked incentive scheme (PLI) for pharmaceutical products has export generation potential of Rs 1,96,000 crore over a period of six years, Parliament was informed on Tuesday.
The government had approved the PLI scheme for pharmaceuticals on February 24 this year.
"The scheme estimated the export generation potential of Rs 1,96,000 crore over a period of six years in all the three categories of products under the scheme, which includes high-value products as well," Chemicals and Fertilisers Minister Mansukh Mandaviya said in a written reply to the Lok Sabha.
The PLI scheme estimated the investment potential of around Rs 15,000 crore and the generation of the 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, he added.
The minister noted that currently, low-value generic drugs account for the major component of Indian exports.
The scheme incentivises the manufacturing of patented drugs and other high-value drugs at an incentive rate of 10 per cent of incremental sales, which is the highest among the product categories under the scheme, he added.
Read also: DoP invites applications under PLI scheme for manufacturing KSMs, drug intermediates, APIs
On June 1 this year, the government had issued operational guidelines for the PLI scheme for the pharmaceutical industry to enhance India''s manufacturing capabilities by increasing investment and production in the sector.
Earlier, the Department of Pharmaceuticals had notified the scheme with an outlay of Rs 15,000 crore.
Read also: Pharma PLI scheme will reduce dependence on API imports: India Ratings and Research
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