India mandates 75 percent local content in pharma products via ‘Make in India’ plan

By PharmaCompass

2019-01-10

Impressions: 199 Article

The government of India sprang up a surprise on New Year’s Day for multinational drugmakers by issuing an order that encourages its ‘Make in India’ initiative.

The government’s Department of Industrial Policy and Promotion (DIPP) has announced measures that specify the local content of pharmaceutical products to be considered during the purchasing process by Government Procuring Entities. The order comes into effect immediately, and shall remain valid until revised.

The ‘Make in India’ initiative promotes manufacturing and production of goods and services in India with a view to enhancing income and employment.

As per the order, formulations which are manufactured in India must have a minimum local content of 75 percent by 2018-19, 80 percent by 2019-2021, 85 percent by 2021-2023 and 90 percent by 2023-2025.

In fact, formulations that are not manufactured in India, but sold in the country, also need to have a minimum local content. These have to be 10 percent by 2018-19, 15 percent by 2021, 20 percent by 2023 and 30 percent by 2025.

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