Why in the News?
The Department of Pharmaceuticals has invited drug manufacturers to apply for benefits under the Production Linked Incentive (PLI) scheme.
It has invited fresh applications for 11 unsubscribed or partially subscribed pharmaceutical products, including Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin, and Diclofenac Sodium, to boost domestic production capacity.
About the PLI Scheme:
- Launch: The Production Linked Incentive (PLI) Scheme was launched in March 2020.
- Objectives: Aimed to boost domestic manufacturing, reduce import dependency, and create employment.
- Initial Focus: Targeted three sectors — mobile manufacturing, electronic components, and medical devices.
- Expansion: Later extended to 14 key sectors, including pharmaceuticals, textiles, IT hardware, automobiles, and electronics.
- Incentive Structure: Offered 1%–4% incentives on incremental sales.
- Impact: Attracted large-scale investments and enhanced global competitiveness of Indian industries.
PLI Scheme for Pharmaceuticals:
- Target Area: Designed to promote bulk drug and formulation manufacturing in India.
- Product Focus: Encouraged domestic production of Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs).
- Strategic Aim: Aimed to reduce import dependence, particularly on China.
- Financial Allocation: Total outlay for the pharmaceutical PLI scheme is ₹6,940 crore.
Tap to read more about various versions of Production Linked Incentive (PLI) Scheme.
| [UPSC 2023] Consider the following statements:
Statement-I: India accounts for 3.2% of global exports of goods. Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme. Which one of the following is correct in respect of the above statements? Options: (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct |
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