Pharma PLI scheme to reduce India's dependence on API imports: Report

India's production-linked incentive (PLI) scheme will reduce India's dependence on imports for key active pharmaceutical ingredients (APIs) said India Ratings and Research (Ind-Ra).

Accordingly, the rating agency expects import dependency to reduce around 43 per cent in the medium term from around 70 per cent currently.

"The scheme will not only attract foreign investments, but also promote the development of complex and high-tech products, emerging therapies and in-vitro diagnostic devices in India."

"The benefits of the scheme will be a function of the pace of rollout of the scheme and interest of Indian pharmaceutical companies."

The agency opined that the scheme will benefit API manufacturers by giving them extra push to setup the necessary infrastructure along with their pre-planned infrastructure.

"Whereas, the benefit to formulations manufacturers will be limited, because compared to the industry size, the incentives are unlikely to be strong enough for them to move up the value chain."