India’s pharmaceutical and medical device sectors are poised for a significant boost, with 50 new greenfield plants set to be established within the next 2 years under the Production-linked Incentive (PLI) scheme. This announcement was made by Arunish Chawla, Secretary of the Department of Pharmaceuticals, during the Annual Pharma Summit organized by Assocham, marking a decade of the ‘Make in India’ initiative.

PLI Scheme's Impact on Manufacturing

The PLI scheme, a flagship program aimed at boosting local manufacturing, has already led to the creation of 50 greenfield plants, which are operational today. These plants are part of the government’s initiative to reduce import dependence and increase domestic production in the pharmaceutical and medical devices sectors. The next phase will see an additional 50 plants set up, further accelerating the growth of the healthcare manufacturing sector in India.

These greenfield plants will focus on the manufacture of bulk drugs, active pharmaceutical ingredients (APIs), and medical technology devices, all critical to bolstering India’s healthcare infrastructure. Pharma and Meditech industries have rapidly evolved into India’s fourth-largest manufacturing export sector, following the automotive, petrochemical, and electronics industries.

Boost to Exports and Trade Balance

Since the inception of the PLI schemes, India has seen remarkable growth in exports, especially in highly regulated markets. Over the last two years, the PLI-backed plants have facilitated exports worth US$ 10 billion, making a significant impact on the country’s global trade presence. This performance challenges the perception that India is over-reliant on bulk drug imports. Mr. Chawla emphasized that India had achieved trade balance in bulk drugs, exporting as much as it imported, a significant milestone for the industry.

Furthermore, over 50% of the pharmaceutical products produced in India, by both volume and value, are being exported, making the sector officially export-oriented. The Make in India initiative has played a crucial role in this transformation by incentivizing local manufacturing through PLI schemes.

Meditech Industry on the Rise

In the medical technology (Meditech) sector, India is witnessing significant growth, particularly in the surgical and consumables space. The Meditech industry has outpaced imports in areas like imaging devices, body implants, and in vitro diagnostics, showcasing double-digit growth across these categories. This performance underscores the sector’s ability to meet domestic demand while also positioning India as a key player in the global medical device industry.

India’s Meditech industry is a crucial component of its healthcare ecosystem, helping the country reduce its reliance on imports for critical medical equipment. By scaling up manufacturing, India is expected to become a global hub for the production of innovative medical devices in the coming years.

Industry-Academia Collaboration for Innovation

The success of the research-linked incentive scheme was another highlight of the summit. Mr. Chawla emphasized the importance of collaborating with academia and industry experts to foster a culture of innovation. The PLI schemes are not just about manufacturing; they also aim to support research and development (R&D), ensuring India remains at the forefront of pharmaceutical and medical technology innovation.

This collaboration between the government, industry, and academia is essential for the commercialization of new technologies and innovation within the healthcare sector. India’s capacity to innovate and manufacture has been instrumental in its success on the global stage, and further support for R&D initiatives is expected to drive the next wave of growth.

India’s commitment to strengthening its pharmaceutical and medical devices manufacturing capabilities through the PLI schemes is evident in the progress already made and the ambitious targets set for the future. The next two years will be crucial as 50 more greenfield plants come online, bolstering domestic production, increasing exports, and cementing India’s role as a global healthcare manufacturing leader.

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India’s PLI schemes continue to play a pivotal role in shaping the future of the pharma and medical technology sectors, ensuring that the country remains competitive in the global healthcare manufacturing arena.