The plan for the licensing scheme is another step in the direction of regulating imports in the crucial sector. The government has already implemented a minimum import price (MIP) on certain bulk drugs, APIs and intermediates, including potassium clavulanate, Penicillin-G and Amoxicillin, to support domestic manufacturing and curb cheap imports, especially from China. Indian companies have also started manufacturing APIs under the government’s production-linked incentive (PLI) scheme launched in 2020 with a financial outlay of ₹6,940 crore for FY23 to FY29. According to the government, a total of 48 projects have been selected under the PLI scheme, of which 34 have been commissioned for 25 bulk drugs.
