“PLI Scheme for pharmaceuticals and IT hardware” Approved

What is the News?

Union Cabinet has approved the Production Linked Incentive(PLI) Scheme for the pharmaceuticals and IT hardware sectors.

About PLI Scheme for Pharmaceutical Sector:

• Objective: It will promote the manufacturing of high-value products in the pharmaceutical sector.
• Duration: The duration of the scheme will be for nine years from 2020-21 till 2028-29.

Category of Goods: The scheme shall cover pharmaceutical goods under three categories as mentioned below:

• Category 1: Biopharmaceuticals such as complex generic drugs, patented drugs, Gene therapy drugs, phytopharmaceuticals, and orphan drugs.
• Category 2: It would cover active pharmaceutical ingredients, key starting materials, and drug intermediaries.
• Category 3: Drugs not covered under Category 1 and Category 2.

Significance of the scheme: The scheme will benefit domestic manufacturers. Moreover, it will help to create employment and will make available a wider range of affordable medicines for consumers.

About PLI Scheme for IT hardware sectors:

• Objective: It will boost domestic manufacturing and investments in the value chain of IT Hardware.
• Target Segment: The target sectors under the scheme includes laptops, tablets, all-in-one PCs and servers.
• Incentives: Under the scheme, beneficiaries will be given incentives of 4% to 1% on net incremental sales over the base year(2019-20) for a period of four years.
• Significance: The government expects the scheme to reduce India’s import dependence for IT hardware in a major way. Currently, 80% of the country’s laptop and tablet demand is met through imports.

Click Here to Read about PLI Scheme

 Source: The Hindu

Production-Linked Incentive (PLI) scheme