The department of pharmaceuticals (DoP), which has formulated the scheme, has divided the products—which consist of formulations, biopharmaceuticals, bulk drugs and in-vitro diagnostic medical devices, among others—into three categories. The first and second categories would attract a 10% incentive on incremental sales, and the third category would attract a 5% incentive. The government has allocated ₹11,000 crore for the first category, which includes biopharmaceuticals, complex generic drugs, patented drugs or drugs nearing patent expiry, gene therapy drugs, orphan drugs and plant-based pharmaceuticals, among others. It has set aside ₹2,250 crore for the second category, which includes bulk drugs that are not among the 41 products that were included in the first PLI scheme announced in July 2020. The first scheme was aimed at boosting the production of 41 bulk drugs, for which India is heavily dependent on imports, especially from China.

Source: Mint June 01, 2021 15:00 UTC