Govt launches 3 schemes to strengthen MSMEs in pharmaceutical sector
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Govt Schemes for MSMEs
Summary:
Small & medium-sized companies should be able to upgrade their facilities to global manufacturing standards.?Small and medium-sized companies generate greater than 2/3rd?of the clinical candidates in the pharma and biotech industry drug development series.?They often, however, lack the knowledge and resources required to take a new medicine from the lab to the market and need support.?In terms of the number of units and employment generation, the MSME sector is at the forefront?as they contribute 35-40 per cent to the industry in terms of production with a turnover of about Rs 35,000 crore.?It is recognised that the MSME units can effectively meet the two major public expectations viz. cost-effective and affordable medicines of given the framework of the excellent manufacturing process, technology, regulatory compliance, distribution system and prices.?The government of India has recently launched three schemes to strengthen Micro, Small and Medium Enterprises (MSMEs) in the pharmaceutical sector. It is believed that 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.
Introduction:
What are?MSMEs?
The MSMEs have been defined in the micro, small and medium enterprises development act, 2006, based on plant & machinery and equipment for the manufacturing sector and service sector, respectively.
The?Micro, Small and Medium Enterprises?(MSMEs) form a significant component of the Indian economy. The MSME sector in India is the second-largest in the world, after China. The domestic pharma market is expected to jump 3x this decade from?$42 billion in 2021 to $65 billion by 2024?and further to around $120-130 billion by 2030,?according to the Indian Economic Survey 2021. The Indian pharmaceutical sector supplies more than 50 per cent of the global demand for various vaccines. India ranks 3rd in terms of pharmaceutical production by volume and 14th by value and the domestic industry includes a network of 3,000 drug companies and around 10,500 manufacturing units. Hence, it is evident that MSMEs play a significant role in the Indian economy, and the growth of the country is dependent on the growth of MSMEs.?This is the reason why the Indian government keeps coming up with different MSME schemes and policies to uplift the growth and ease the business for MSME owners.
Creation and?Harmonious?Application of?Modern?Processes for?Increasing the?Output and?National?Strength
Objective:
Schemes For MSMEs
The government OF India has launched MSME schemes to ensure the smooth?working and growth of MSMEs. Many subsidies are provided to MSMEs from time to time. Recently introduced some of the schemes that will shape the?future of MSMEs in India.
The schemes (PTUAS) envisage technology up-gradation, setting up common research centres and effluent treatment plants in clusters for the pharma MSMEs.?The chemicals and fertilisers ministry rolled out the schemes under the banner of?'Strengthening Pharmaceuticals Industry'?(SPI). The schemes provide for credit linked capital and interest subsidy for technology upgradation of MSME units in the pharmaceutical sector, as well as support of up to?Rs 20 crore each?for common facilities, including research centres, testing labs and ETPs, in pharma clusters. The scheme has provisions for a capital subsidy of 10 per cent on loans up to a maximum limit of Rs 10 crore with a minimum repayment period of three years or interest subvention of up to 5 per cent (6 per cent in case of units owned by SC/ST) on reducing balance basis.
2. Assistance to Pharma Industries for Common Facilities Scheme (API-CF):
The Scheme (API-CF) would strengthen the existing pharmaceutical clusters' capacity for?sustained growth.?It provides for an assistance of up to 70 per cent of the approved project cost or?Rs 20 crore. In case of Himalaya and north-east region, the grant-in-aid would be Rs 20 crore per cluster or 90 per cent of the project cost.
3.?Pharmaceutical and Medical Devices Promotion and Development Scheme (PMPDS):
The?Scheme (PMPDS) would involve preparation of study reports on topics of importance for the Indian pharma and medical device industry. The scheme is aimed at?creating a database?of pharma and medical device sectors.
Outcomes:
These schemes will increase investment, encourage research and innovation and enable the industry to develop futuristic products and ideas, and government is working to enhance ease of doing business and also reduce compliances to help the industry grow at a rapid pace.
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