The government has opened a treasury to make the country self-reliant in the pharma and electronics sector and to encourage Make in India. This step will generate employment to 25 lakh people.
To make the country self-sufficient in the pharma and electronics sector and to encourage Make in India, the government has decided to give a package of Rs 61,802 crore. A total package of Rs 48,042 crore was given to the electronics sector under three schemes, while a total provision of Rs 13,760 crore has been made for the manufacture of pharma and medical equipment. This decision of the government is expected to invest 20 lakh crores in the electronics sector alone, which will provide employment to 25 lakh people. The decision was taken last Friday in a cabinet committee meeting chaired by Prime Minister Narendra Modi, which was announced on Saturday.
40,995 crores to Electronics Manufacturing
Minister of Electronics and Information Technology Ravi Shankar Prasad said that funds have been fixed under three schemes for electronics manufacturing. Under the first scheme, production linked incentives will be given to encourage production of electronics goods in India. The government has placed a fund of Rs 40,995 crore under this head. He informed that the Production Linked Incentive Scheme will remain in force for the next 5 years and this will attract foreign companies to India. Some domestic companies will also get a chance to become champions in this field.
3285 crore incentive for manufacturing
The second scheme related to electronics is related to manufacturing incentives for electronic components and semiconductors. In this head, the government will provide assistance of Rs 3285 crore. Under this, the government will provide financial assistance of 25 percent on the capital investment that will be made for the manufacture of components and semiconductors. The electronics manufacturing cluster will be constructed under the third scheme of electronics manufacturing. A provision of Rs 3762 crore has been made under this head. There will be one large company in the cluster and the rest will be small companies.
13,760 crores for bulk drugs and medical equipment
Minister of State for Chemicals and Fertilizers (Independent Charge) Mansukh Mandaviya said that a total package of Rs 13,760 crore was approved to make the country self-sufficient in the bulk drug and medical equipment sector. A package of Rs 9,940 crore has been approved for bulk drugs and Rs 3,820 crore has been given for medical equipment. He informed that a provision of Rs 6,940 crore has been made for production linked incentives to encourage the manufacture of bulk drugs.
Four medical devices parks to be built
Three bulk drug parks will be built at a cost of Rs 3000 crore. Four medical device parks will be built to encourage the manufacture of medical equipment. The government will contribute 400 crore rupees in the construction of the park. It has also been decided to provide production linked incentives to encourage manufacturing of medical equipment. 3420 crores will be given under this head. Under medical equipment manufacturing, equipment such as MRI machines, pathology machines, X-ray machines will be manufactured which are not yet made in India.
Pharma sector 3 lakh crores
Mandavia told that the pharma sector in India is a 3 lakh crore industry. But many of the bulk drugs with which the drug is manufactured, we import in large quantities. India currently imports bulk drugs worth Rs 42,000 crore. In the case of medical equipment, 85 per cent we depend on imports. With the help of this scheme announced by the government, India will become a drug safe country in the next five years. According to pharma manufacturers, China accounts for 65 per cent of the bulk drug used in pharmaceutical manufacturing in India. If 10 percent is imported from other countries, only 25 percent of bulk drugs are manufactured domestically. This is the reason that due to corona affecting supply chain due to corona, there was a possibility of lack of bulk drug.