{"id":14094,"date":"2021-02-25T00:00:00","date_gmt":"2021-02-25T00:00:00","guid":{"rendered":"https:\/\/www.nextias.com\/current_affairs\/uncategorized\/25-02-2021\/pli-for-pharmaceuticals-and-it-hardware\/"},"modified":"2021-02-25T00:00:00","modified_gmt":"2021-02-25T00:00:00","slug":"pli-for-pharmaceuticals-and-it-hardware","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/25-02-2021\/pli-for-pharmaceuticals-and-it-hardware","title":{"rendered":"PLI for Pharmaceuticals and IT Hardware"},"content":{"rendered":"<p><strong>In News<\/strong><\/p>\n<p>Recently, the Union Cabinet has approved the <strong>Production Linked Incentive<\/strong> (PLI)<strong> Scheme<\/strong> for the <strong>pharmaceuticals and IT hardware sectors<\/strong>, entailing an outlay of <strong>Rs. 15,000 crore<\/strong> and <strong>Rs. 7,350 crore<\/strong>, <strong>respectively<\/strong>.<\/p>\n<ul>\n<li>In line with the vision of <strong>Aatmanirbhar Bharat<\/strong>, the move intends to <strong>make India a major manufacturing hub<\/strong> in the production of medicines and medical equipment and also laptops, tablets, personal computers and servers.<\/li>\n<li>These <strong>aim <\/strong>to create global champions from India that have the <strong>potential to grow in size and scale <\/strong>using <strong>cutting edge technology<\/strong> and thereby <strong>penetrate global value chains<\/strong>.<\/li>\n<\/ul>\n<p><strong>PLI for Pharmaceuticals<\/strong><\/p>\n<ul>\n<li><strong>Duration:<\/strong> For nine years till 2028-29.<\/li>\n<li>It will <strong>benefit domestic manufacturers<\/strong>, help in <strong>creating employment<\/strong> and is expected to contribute to the availability of a wider range of <strong>affordable medicines for consumers<\/strong>.<\/li>\n<li>It is expected to bring in an<strong> investment of Rs. 15,000 crore<\/strong> in the pharmaceutical sector.<\/li>\n<li>The <strong>growth <\/strong>in the sector is expected to add <strong>20,000 direct and 80,000 indirect jobs<\/strong> for <strong>both skilled and unskilled<\/strong> personnel.<\/li>\n<li>It will <strong>promote the production of high-value products<\/strong> in the country and<strong> increase the value addition <\/strong>in <strong>exports<\/strong>.<\/li>\n<li>It will <strong>promote innovation<\/strong> for the <strong>development of complex and high-tech products<\/strong> including <strong>products for emerging therapies<\/strong> and<strong> in-vitro diagnostic devices<\/strong>.<\/li>\n<li>It will bring<strong> self-reliance in important drugs<\/strong>, while <strong>improving accessibility and affordability<\/strong> of medical products, including orphan drugs, to the Indian population.<\/li>\n<li>It has<strong> three categories.<\/strong>\n<ul>\n<li><strong>First Category:<\/strong> It will include biopharmaceuticals, complex generic drugs, patented drugs or drugs nearing patent expiry, cell-based or gene therapy drugs, orphan drugs, special empty capsules; complex excipients and phytopharmaceuticals.<\/li>\n<li><strong>Second Category: <\/strong>It will include active pharmaceutical ingredients and drug intermediates.<\/li>\n<li><strong>Third Category:<\/strong> It will cover all the drugs that are not captured in the first two, including repurposed drugs, autoimmune drugs, anti-cancer and anti-diabetic drugs.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Indian Pharmaceutical Industry<\/strong>\n<ul>\n<li>It is the <strong>3rd largest in the world by volume<\/strong>.<\/li>\n<li>It has a high market <strong>presence in<\/strong> several advanced economies such as the <strong>US and the European Union<\/strong> (EU).<\/li>\n<li>It is well<strong> known for its production of affordable medicines<\/strong>, particularly in the <strong>generics space<\/strong>.<\/li>\n<li>However, the country is <strong>significantly dependent on the import of basic raw materials<\/strong> like <strong>Bulk Drugs <\/strong>that are used to produce medicines.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>PLI for IT Hardware<\/strong><\/p>\n<ul>\n<li><strong>Duration:<\/strong> For four years till 2025.<\/li>\n<li><strong>Beneficiaries:<\/strong> IT hardware sector such as laptops, tablets, all-in-one PCs and servers.<\/li>\n<li>Under it, the <strong>incentive <\/strong>will be given <strong>on net incremental sales of goods manufactured<\/strong> in India for a period of four years.<\/li>\n<li>It will benefit <strong>five major global players<\/strong> and <strong>ten domestic champions<\/strong> in the field of IT hardware.<\/li>\n<li>It will enable domestic value addition in IT hardware to <strong>rise from 5-10% at present to 20%-25% by 2025<\/strong>.<\/li>\n<li>Under the scheme, <strong>incentives of 4% to 1%<\/strong> on net incremental sales over the base year (2019-20) will be given to the beneficiary companies.<\/li>\n<li>It includes an <strong>incentive outlay of Rs 7,325 crore<\/strong> and <strong>administrative charges of Rs 25 crore<\/strong>.<\/li>\n<li>It will <strong>reduce imports<\/strong> and <strong>enhance the development of the electronics ecosystem<\/strong> in the country.\n<ul>\n<li>Currently,<strong> 80%<\/strong> of the country\u2019s laptop and tablet <strong>demand is met through imports<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li>The scheme will provide <strong>impetus to domestic value addition for IT hardware<\/strong> which is <strong>expected to rise to 20-25% by 2025<\/strong>.<\/li>\n<li>The scheme has the<strong> potential to generate employment for more than 1,80,000<\/strong> (direct and indirect jobs) over <strong>four years<\/strong>.<\/li>\n<li>The scheme will be part of the <strong>umbrella scheme for the Development of Pharmaceutical Industry<\/strong>.\n<ul>\n<li>The objective of the scheme is to <strong>enhance India&#8217;s manufacturing capabilities<\/strong> by<strong> increasing investment and production<\/strong> in the sector and contributing to product diversification to high-value goods in the pharmaceutical sector.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<table border=\"1\" cellspacing=\"0\" style=\"width:735px\">\n<tbody>\n<tr>\n<td style=\"height:103.3pt; vertical-align:top; width:468.0pt\">\n<p><strong>Production Linked Incentive<\/strong><\/p>\n<ul>\n<li>It was introduced in <strong>March 2020<\/strong>, to <strong>boost domestic manufacturing<\/strong> and <strong>cut down on import bills<\/strong>.<\/li>\n<li>The<strong> total incentives<\/strong> under the PLI schemes, covering sectors including telecom, electronics, auto part, pharma, chemical cells and textiles, stood at <strong>Rs 1.97 lakh crore over a five-year period<\/strong>.<\/li>\n<li><strong>Aims<\/strong>\n<ul>\n<li>To give <strong>companies incentives on incremental sales<\/strong> from products manufactured in domestic units.<\/li>\n<li>To<strong> invite foreign companies <\/strong>to set shop in India.<\/li>\n<li>To <strong>encourage local companies<\/strong> to set up or <strong>expand<\/strong> existing manufacturing units.<\/li>\n<\/ul>\n<\/li>\n<li>So far, the scheme has been<strong> rolled out for mobile and allied equipment <\/strong>as well as <strong>pharmaceutical ingredients and medical devices manufacturing<\/strong>.\n<ul>\n<li>The scheme for <strong>mobile and allied equipment<\/strong> was notified on <strong>1st April 2020<\/strong>, the guidelines for <strong>pharmaceutical ingredients and medical devices<\/strong> were notified on <strong>1st July 2020<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li>The goal is to<strong> make India more compliant<\/strong> with the <strong>World Trade Organisation<\/strong> (WTO) commitments and also <strong>make it non-discriminatory and neutral with respect to domestic sales and exports<\/strong>.<\/li>\n<li>On <strong>17th February 2021<\/strong>, Cabinet approved<strong> the <\/strong><a href=\"https:\/\/www.nextias.com\/current-affairs\/18-02-2021\"><strong>PLI scheme for telecom<\/strong><\/a> equipment.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"https:\/\/www.thehindu.com\/news\/national\/cabinet-approves-pli-scheme-for-pharmaceuticals\/article33924395.ece\" target=\"_blank\" rel=\"noopener\">Source: TH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In News Recently, the Union Cabinet has approved the Production Linked Incentive (PLI) Scheme for the pharmaceuticals and IT hardware sectors, entailing an outlay of Rs. 15,000 crore and Rs. 7,350 crore, respectively. In line with the vision of Aatmanirbhar Bharat, the move intends to make India a major manufacturing hub in the production of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14095,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-14094","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2023\/07\/2417017current-affairs (1).jpg","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/14094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=14094"}],"version-history":[{"count":0,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/14094\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/14095"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=14094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=14094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=14094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}