Government To Favour Domestically Produced Drugs In ‘Make In India’ Push 
Vitamin tablets are arranged for a photograph in Tokyo, Japan. (Photographer: Kiyoshi Ota/Bloomberg)

Government To Favour Domestically Produced Drugs In ‘Make In India’ Push 


The government on Tuesday said preference for public procurement programmes in the pharmaceutical sector will be given to domestically produced drugs with minimum of 75 percent local content in the ongoing fiscal which will go up to 90 percent by 2023-25.

With an aim to push Make in India in the pharmaceuticals sector, the Department of Pharmaceuticals also said for formulations that are not manufactured in India, the minimum local content shall be 10 percent in 2018-19.

This will go up to 15 percent in 2019-21, 20 percent in 2021-23 and up to 30 percent in 2023-25 for the formulations not manufactured in the country, according to a department order.

The Department of Industrial Policy and Promotion had identified Department of Pharmaceuticals as the nodal department for implementing the provisions related to goods, services or works related to the pharmaceutical sector in promoting Make in India.

The Department of Pharmaceuticals said "purchase preference shall be provided by all government procuring entities to local suppliers of pharmaceutical formulations in various dosages forms", while setting out minimum local content requirement.

For pharmaceutical formulations manufactured in India in different dosage forms and strengths, the minimum local content will be 75 percent in 2018-19. It will be increased to 80 percent in 2019-21 and 85 percent during 2021-23 and shall be 90 percent during 2023-25, the order said.

The order will be applicable to procurement of medicines made by state governments or public-sector undertakings under state governments or local bodies under centrally sponsored schemes that are fully or partially funded by the Centre.

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