Will India’s $3bn Incentive Schemes Yield A $41bn Dividend?

Industry Commits $700m Under First PLI Scheme

An new $2.1bn incentive scheme for formulations follows on from an earlier scheme for APIs in India. Experts weigh in on the likelihood of industry participation and whether this $3bn push will result in $41bn of incremental sales for the industry while strengthening supply chains in a post-COVID world.   

Mumbai's cityscape around the Bandra Worli Sea Link as seen from the top of a 240 metre tall tower. This is the skyline of Prabhadevi and Dadar in Mumbai.

It is not every day that a government rolls out a large fiscal stimulus. Yet supply disruptions due to COVID-19, the government’s ‘Make In India’ push and a realization of the country's dependence on China have prompted not one but two schemes by the Indian government with potential to boost India’s manufacturing capability.

Following a profit-linked incentive (PLI) scheme introduced in 2020 for production of certain critical raw materials like penicillin G, the...

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