India is putting serious money into getting China off its back. On 24 February, the government promised promised PIB Cabinet approves Production Linked Incentive Scheme for Pharmaceuticals Read more Rs 15,000 crore ($2 billion) into a production linked incentive (PLI) scheme for pharmaceuticals. This comes after it initially announced announced The Hindu Businessline Centre announces ₹10,000-cr booster for local drug production Read more Rs 10,000 crore ($1.3 billion) in July 2020, when the scheme was declared.
New Independence Movement
The holes in India’s plan to become a drug ingredient hotspot
With a Rs 15,000 crore scheme, the Indian government is pushing Indian pharma companies to set up raw material plants from scratch. But why would companies do that when they can’t use existing plants?
Most pharma companies are shying away from the government's incentivised PLI scheme in its current form
Covid may have been a wake-up call for India to deal with its drug insecurities, but Indian companies love cheap Chinese imports
Besides, the scheme does little to nothing in addressing the domestic industry's pain points—cheap land, tax exemptions and easy logistics
Domestic companies are still waiting on details on the scheme. Would they now be able to use existing production units?