After three decades, India is set to resume the manufacturing of Penicillin G., attributing the achievement to the success of the government’s Production Linked Incentive (PLI) scheme for pharmaceuticals and medical devices. Penicillin G, an antibiotic crucial for treating various infections such as pneumonia and syphilis, used to be produced in India until the late 1980s. However, imports eventually led to the decline of local production facilities for Penicillin G. Hence, the initiative to revive its manufacturing is seen as a positive development for the industry.
Despite the positive outcomes of the PLI scheme, experts from the pharmaceutical and medical device industries highlight certain challenges and advocate for streamlining approval and licensing procedures to further enhance the scheme’s effectiveness. While acknowledging the benefits of the PLI scheme in promoting domestic manufacturing and reducing reliance on imports, experts from the pharmaceutical sector are worried regarding entry barriers, particularly for small and medium-sized enterprises in the medical technology sector. The scheme’s requirement for greenfield investments may deter smaller players from participating fully.
Additionally, there are concerns about the potential impact of increased production on the cost of medical equipment, with fears of oversupply leading to a drop in prices. Despite these challenges, the government has invested significantly in both pharmaceuticals and medical devices under the PLI scheme.
The recent inauguration of numerous projects under the PLI scheme, including those for bulk drugs and medical devices, signifies progress towards achieving self-reliance in pharmaceutical and medical device manufacturing. Experts suggest revisiting the financial support provided under the scheme to ensure its adequacy and effectiveness. As reported by businessline, while the PLI scheme has shown promise in boosting domestic production, its long-term success in strengthening India’s manufacturing capabilities remains to be seen in the coming years.
