India, known for its generic medicines and vaccine production, is advised to enhance its manufacturing of high-value pharmaceuticals and Active Pharmaceutical Ingredients (API). Economists emphasize the need for robust Production Linked Incentive (PLI) schemes to facilitate this transition. The NITI Aayog report highlights India’s strength in formulations and generic drugs, suggesting a shift towards high-value pharmaceutical exports.
Investing in research and innovation for basic drugs is crucial, with a focus on strong PLI schemes for valued products like basic drugs and APIs, according to economist Ved Jain. To leverage India’s competitive advantage in formulations, regulatory barriers need to be addressed, production scaled up, and high-value pharmaceutical exports increased. The country’s participation in free trade agreements is seen as beneficial once regulatory hurdles are resolved.
The PLI Scheme for pharmaceuticals aims to boost manufacturing of high-value products such as biopharmaceuticals and complex generics. Since its inception, the scheme has recorded significant sales and exports, surpassing targeted investments. This initiative has also contributed to reducing import reliance for bulk drugs. Despite India’s strong presence in generic drugs, there is a need to expand into high-value segments like biologics and advanced therapeutics to align with global pharmaceutical trends.
