Schemes for promoting domestic manufacturing of APIs

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The quantity of API manufactured domestically is not readily available. However, the size of API and Intermediates market in India is estimated to be Rs. 96,000 crore in FY 2019-20. Further, as per data maintained by the Directorate General of Commercial Intelligence and Statistics (DGCIS), the quantity and value of API imported and exported in FY 2020-21 is given below:

	Quantity (In MT)	Value (Rs. In crore)
Imports	3,90,476	28529
Exports	3,24,331	32856

The Department of Pharmaceuticals is implementing the following three (03) schemes for promoting domestic manufacturing of APIs to ensure their sustainable domestic supply and make India AtmaNirbhar (self-reliant):

Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) In India: The scheme provides for financial incentives to manufacturers selected under the scheme for manufacturing of 41 Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs). The incentives will be provided on incremental sales to selected participants for a period of 6 years. The total financial outlay of the scheme is Rs. 6,940 crore and the tenure of the scheme is from FY 2020-2021 to 2029-30.

Scheme for Promotion of Bulk Drug Parks: The scheme provides for grant-in-aid to three (03) Bulk Drug Parks for the creation of Common Infrastructure Facilities (CIF) with a maximum limit of Rs.1000 crore per park or 70% of the project cost of CIF, whichever is less. In the case of the North Eastern States and Hilly States (Himachal Pradesh, Uttarakhand, Union Territory of Jammu & Kashmir and Union Territory of Ladakh) financial assistance would be 90% of the project cost. The total financial outlay of the Scheme is Rs. 3000 crores and the tenure of the Scheme is from FY 2020-21 to 2024-25.

Production Linked Incentive Scheme for Pharmaceuticals: The scheme provides financial incentives to manufacturers selected under the scheme for manufacturing of Key Starting Materials (KSMs)/ Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) amongst other categories of formulations. The incentives will be provided on incremental sales to selected participants for a period of 6 years. The total financial outlay of the scheme is Rs. 15,000 crores and the tenure of the scheme is from FY 2020-2021 to 2028-29.