Product Linked Incentive for Indian Pharmaceuticals

Written by Saptaparni Raha, Lawyer

Introduction:

The Product-Linked Incentive is a scheme for pharmaceutical industries based on the strategies of 'Atmanirbhar Bharat' to enhance the manufacturing capabilities of pharmaceutical products. It was approved by the Union Cabinet on February 24, 2021.

Objective:

• The scheme aims at enhancing manufacturing capabilities by increasing manufacturing and production in the sector.

• It would contribute to product diversification of high-value goods in the sector.

• The other objective is to create global champions out of India who has the potential to grow in size and scale using cutting-edge technology.

Conclusion:

Product Linked Incentive Scheme would provide around 15,000 crores of financial incentives on the incremental sales of pharma products. It would also provide in-vitro diagnostic medical devices to selected applicants based on predefined selection criteria. The project management manager for the scheme is the Small Industries Development Bank of India (SIDBI).

Reference:

Ministry of Chemicals and Fertilizers. (2021). Production Linked Incentive scheme for the Pharmaceutical Sector. retrieved from https://pib.gov.in/PressReleasePage.aspx?PRID=1775321

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