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.
Source: The Hindu