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286 Economic Survey 2021-22

This scheme is expected to make domestic manufacturing globally competitive and will create
global champions in manufacturing. The Government has already committed Rs.1.97 lakh crores,
over 5 years starting from 2021-22 in 13 sectors. Recently, PLI in the 14th sector - drones and
drone components has been included with an additional layout of Rs. 120 crores. The initial 13
sectors are Electronic/Technology Products, Medical devices, Drug intermediaries and APIs,
Mobile Manufacturing and Specified Electronic Components, Pharmaceuticals drugs, Telecom
& Networking Products, Telecommunications, Food Products, White Goods (ACs & LED), High
Efficiency Solar PV Modules, Automobiles & Auto Components, Advance Chemistry Cell (ACC)
Battery, Textile Products: Man Made Fabrics segment and technical textiles and Specialty Steel.

So far, the 13 initial schemes have been notified and guidelines have been issued where required. The
first three schemes notified were for mobile phones and specified electronic components, APIs/Drug
intermediates and medical devices. In case of mobile phones and specified electronic components,
in the first round, 16 applications worth Rs. 36440 crores were approved and in the second round, 18
applications worth Rs. 483 crores were approved by the competent authority. In case of APIs/drug
intermediates and medical devices, 42 applications worth Rs. 4347.26 crore and 13 applications with
a committed investment of Rs. 798.93 crores have been approved so far by the competent authority,
respectively.

Pharmaceuticals

8.33 Indian Pharmaceutical industry ranks third in the world in pharmaceutical production by
volume. During2020-21, total pharma export US$ 24.4 Bn against the total pharma import of
US$7.0Bn (Figure 21), thereby generating trade surplus of US$17.5 Bn. India is the largest
supplier of generic medicines with a 20percent share in the global supply. Price competitiveness
and good quality has enabled Indian medicines producers to be dominant players in the world
market, thereby making the country the “Pharmacy of the world”. FDI in the pharmaceutical
sector has seen a sudden spurt in 2020-21 vis a vis the previous year showing a 200percent
increase. In 2021-22 (April-September) the FDI inflows continued to be buoyant at Rs.
4413crore, growing at the rate of 53 percent over the same period in 2020-21. The extraordinary
growth of foreign investments in pharma sector is mainly on account of investments to meet
COVID-19 related demands for therapeutics and vaccines.

8.34 Although a prominent player in formulations, the country is significantly dependent on
the import of bulk drugs that are used in the formulation of medicine. In certain cases, import
dependence varies between 80-100 percent. This issue of import dependence for critical bulk
drugs was examined by a High-Level Committee and a composite set of actions to incentivize
bulk drug production have been initiated.