By Neetu Chandra Sharma and Shreya Nandi
The Union Cabinet on Wednesday extended the production-linked incentive (PLI) scheme for the pharma and IT hardware sectors, approving ₹15,000 crore and ₹7,325 crore worth of incentives, respectively, to encourage domestic manufacturing.
The cabinet, chaired by Prime Minister Narendra Modi, said the PLI scheme for pharma will be effective over FY21-FY29, while incentives for manufacturers of laptops, tablets, all-in-one personal computers and servers, will enjoy the benefits for a four-year period. The move will boost local manufacturing and reduce India’s dependence on imports.
The government estimates the scheme will help the pharma sector clock incremental sales of ₹2.94 lakh crore and incremental exports worth ₹1.96 lakh crore during the six years, while the IT hardware segment will be able to build production capacity worth ₹3.26 lakh crore, of which 75%, or ₹2.45 lakh crore, will be for exports, in the next four years. The government also expects the top five global manufacturers of laptops and tablets, including Apple, Dell and HP, to set up local units.
The PLI scheme for pharmaceuticals, the government said, is expected to generate employment for both skilled and un-skilled personnel, estimated at 20,000 direct and 80,000 indirect jobs. The PIL scheme will be the umbrella scheme for the development of industry. “The objective of the scheme is to enhance India’s manufacturing capabilities by increasing investments and production in the sector, and contributing to product diversification to high-value goods in the pharmaceutical sector,” electronics and information technology minister Ravi Shankar Prasad said.
{{/usCountry}}The PLI scheme for pharmaceuticals, the government said, is expected to generate employment for both skilled and un-skilled personnel, estimated at 20,000 direct and 80,000 indirect jobs. The PIL scheme will be the umbrella scheme for the development of industry. “The objective of the scheme is to enhance India’s manufacturing capabilities by increasing investments and production in the sector, and contributing to product diversification to high-value goods in the pharmaceutical sector,” electronics and information technology minister Ravi Shankar Prasad said.
{{/usCountry}}It is expected to promote innovation for the development of complex and high-tech products, including emerging therapies and in-vitro diagnostic devices, besides building self-reliance in key drugs. It is also expected to improve accessibility and affordability of medical products, including orphan drugs, for the Indian population, it added.