Government Introduces Initiatives to Enhance Pharmaceutical MSMEs in India

The government has introduced three initiatives to bolster Micro, Small, and Medium Enterprises (MSMEs) in the pharmaceutical sector. Union Minister Mansukh Mandaviya highlighted that these initiatives aim to enhance technology, establish common research centres, and set up effluent treatment plants within pharma clusters. The schemes are designed to help small companies upgrade their facilities to meet global manufacturing standards.

The 'Strengthening Pharmaceuticals Industry' (SPI) initiative was launched by the chemicals and fertilisers ministry. Mandaviya, who oversees both health and chemical and fertilisers ministries, expressed confidence that these schemes will significantly benefit the pharma MSME sector. "I believe the pharma MSME industry will greatly benefit from the schemes. The new schemes have many benefits that will go a long way in making the Indian pharmaceutical industry, Atma Nirbhar, more resilient and future-ready," he stated.

The Pharmaceutical Technology Upgradation Assistance Scheme (PTUAS) is designed to help pharmaceutical MSMEs with a proven track record enhance their technology. This scheme offers a capital subsidy of 10% on loans up to Rs 10 crore, with a minimum repayment period of three years. Alternatively, it provides an interest subvention of up to 5% (6% for SC/ST-owned units) on a reducing balance basis.

Additionally, the Assistance to Pharma Industries for Common Facilities Scheme (API-CF) aims to boost the capacity of existing pharmaceutical clusters for sustained growth. It offers assistance covering up to 70% of the approved project cost or Rs 20 crore, whichever is lower. In regions like the Himalayas and north-east, the grant-in-aid is Rs 20 crore per cluster or 90% of the project cost, whichever is less.

The Pharmaceutical and Medical Devices Promotion and Development Scheme (PMPDS) focuses on preparing study reports on significant topics for India's pharma and medical device sectors. This scheme aims to create a comprehensive database for these industries. Mandaviya urged the industry to continuously upgrade to meet evolving global market demands and emphasised shifting focus from volume to value.

Mandaviya also highlighted various government initiatives supporting the MSME sector. He noted that 40% of participants selected under the production-linked incentive scheme for pharmaceuticals are from the MSME category. The minister stressed the importance of demand-based research and encouraged stronger ties between industry and academia.

SIDBI will serve as the project management consultant for implementing these schemes. These initiatives are expected to increase investment, foster research and innovation, and enable the development of futuristic products and ideas. The government is committed to enhancing ease of doing business by reducing compliances, thereby facilitating rapid industry growth.