Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
PLI Scheme:
Context:
Approval accorded under PLI Scheme for Promotion of Domestic Manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates and Active Pharmaceutical Ingredients (APIs).
Indian pharmaceutical industry:
It is the 3rd largest in the world by volume. It has high market presence in several advanced economies such as the US and EU. The industry is well known for its production of affordable medicines, particularly in the generics space.
- However the country is significantly dependent on the import of basic raw materials, viz., Bulk Drugs that are used to produce medicines.
About the PLI scheme:
To make India a manufacturing hub, the government had initially announced the PLI scheme for mobile phones, pharma products, and medical equipment sectors.
- Notified on April 1, 2020 as a part of the National Policy on Electronics.
- It proposes a financial incentive to boost domestic manufacturing and attract large investments in the electronics value chain.
In November 2020, the Union Cabinet gave its approval to introduce the Production-Linked Incentive (PLI) Scheme in 10 more sectors for enhancing India’s manufacturing capabilities and exports (Atmanirbhar Bharat).
InstaLinks:
Prelims Link:
- Key proposals under the National Policy on Electronics.
- Production linked incentive scheme- when was it announced?
- Incentives under the scheme is available to?
- What kind of investments will be considered?
- Duration of the scheme.
- Who will implement it?
Mains Link:
What is the production linked incentive scheme for electronics manufacturers? Discuss.
Sources: PIB.
