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Govt notifies incentive scheme for local API manufacturing to cut imports

According to a government notification, bulk drugs accounted for 63 per cent of total pharmaceutical imports in the country in 2018-19.

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India imports bulk drugs largely for economic reasons. Chinese bulk drugs are cheaper by 25-30 per cent on average, compared to domestic products.

Sohini Das Mumbai

2 min read Last Updated : Jul 22 2020 | 8:10 PM IST

On Tuesday, the central government had notified a Rs 6,940-crore production linked incentive scheme to boost local bulk drug manufacturing and further reduce dependence on imports. Around 53 active pharmaceutical ingredients (APIs) — covering 41 products — have been identified by the government, for which companies will be eligible for financial incentives, provided they set up indigenous greenfield manufacturing.

According to a government notification, bulk drugs accounted for 63 per cent of total pharmaceutical imports in the country in 2018-19. “The Indian pharmaceutical industry is the third largest in the world by volume and 14th largest in terms of value. India

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