Union Minister for Chemicals and Fertilizers D.V. Sadananda Gowda launched four schemes of department of pharmaceuticals for promotion of domestic manufacturing of bulk drugs and medical devices parks in the country.

What are the four schemes?

* Scheme for promotion of Bulk Drug Parks with financial implication of Rs 3,000 crore for next five years.

* Production Linked Incentive (PLI) scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs), drug intermediates and Active Pharmaceutical Ingredients (APIs) to boost domestic manufacturing of bulk drugs. The scheme will have financial implications of Rs 6,940 crore for next eight years.

* Production Linked Incentive (PLI) scheme for promoting domestic manufacturing of medical devices with financial implications of Rs 3,420 crore. 

* Scheme for common infrastructure facilities in four medical device parks with financial implications of Rs 400 crore.

It is expected that these schemes will make India not only self-reliant but also capable of catering to the global demand for the selected bulk drugs and medical devices.

Bulk drugs

The Indian pharmaceutical industry is one of the largest in the world by volume. However, India is significantly dependent on import of basic raw materials — bulk drugs — that are used to produce medicines. 

Continuous supply of drugs is necessary to ensure delivery of affordable health care to the citizens. 

Any disruption in supplies can have a significant adverse impact on drug security, which is also linked to the overall economy of the country. Self-sufficiency in manufacturing of bulk drugs is highly required.

The government has decided to develop three mega bulk drug parks in India in partnership with states. States will be selected through a challenge method and norms are finalised for the process.  

The list of 41 products contained in the scheme guidelines will enable domestic production of 53 bulk drugs. Financial incentives will be given to a maximum of 136 manufacturers selected under the scheme as a fixed percentage of their domestic sales of these 41 products manufactured locally with required level of domestic value addition. Incentives would be given for a period of six years.

Medical devices

Medical devices is a growing sector and its potential for growth is the highest among all sectors in the healthcare market. 

It is valued at Rs 50,026 crore for 2018-19 and is expected to reach Rs 86,840 crore by 2021-22.

India depends on imports up to an extent of 86 per cent of total domestic demand of medical devices.

The scheme for promoting domestic manufacturing of medical devices will have four target segments. 

1) Cancer care / Radiotherapy medical devices.

2) Radiology & imaging medical devices (both ionizing & non-ionizing   radiation products) and nuclear imaging devices.

3) Anesthetics & cardio-respiratory medical devices including catheters of cardio respiratory category and renal care medical devices.

4) All implants including implantable electronic devices. 

The schemes will lead to generation of additional employment of 33,750 jobs over a period of five years.

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