To change India’s image as a manufacturer and exporter of low-value drugs, the government made an earnest attempt on Wednesday to announce a ₹15,000 crore production linked incentive (PLI) scheme to promote the manufacture of high-value products in the pharmaceutical sector.

Approved by the Union Cabinet, the scheme will be available for three different categories of firms. Firms that had global manufacturing revenue of ₹5,000 and above in 2019-20 will be classified as Group A, those between ₹5,000 and ₹5,00 crore as Group B, and those having the manufacturing revenue up to ₹500 crores as Group C. The quantum of incentives available to those in Group A is a total of ₹11,000 crores, While Group B and Group C firms will get a total incentive of ₹2,250 crores and ₹1,750 crores respectively.

India currently accounts for 3.5% of global pharma exports. This year, the value of Indian pharma exports is slated to touch $25 billion. The PLI scheme will be implemented over eight years beginning in 2020-21 and will lead to the creation of 20,000 direct and 80,000 indirect jobs. It is expected to benefit domestic manufacturers besides making an available wider range of affordable medicines for Indians.