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Home Economics

India’s Production-Linked Scheme Will Enhance Domestic Bulk Drug Manufacturing Capabilities

Fitch Solutions by Fitch Solutions
July 30, 2022
in Economics
Reading Time: 1 min read
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India's Production-Linked Scheme Will Enhance Domestic Bulk Drug Manufacturing Capabilities

Key View

  • India’s production-linked incentive scheme will reduce imports by promoting domestic manufacturing of pharmaceuticals.
  • The country will remain keen to secure its drugs market from external shocks, lessen import dependencies, and continue support for the domestic production capabilities in APIs.
  • Reducing India’s dependence on Mainland China will not be easy to achieve.

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India’s production-linked incentive (PLI) scheme will reduce import by promoting domestic manufacturing of pharmaceuticals. The Indian government approved a production-linked incentive (PLI) scheme in February 2021 targeting India’s pharmaceutical sector for enhancing drug manufacturing capabilities and expanding exports. The key objectives of the scheme are:

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