Strengthening Pharmaceuticals Industry (SPI) Scheme

Background and Context

  • India is already a pharmaceutical powerhouse.
    • It is the 3rd largest producer by volume (number of medicines manufactured).
    • But by value, it ranks 14th—which means that though we produce a lot, much of it is low-cost generics.
  • India also has the second-highest number of US-FDA approved plants outside the United States, showing global trust in Indian quality.
  • Yet, gaps remain:
    • Pharma clusters often lack common infrastructure like modern testing labs or training centers.
    • Many units, especially MSMEs, struggle to upgrade to Schedule M (mandatory under Drugs & Cosmetics Act) and WHO-GMP (World Health Organization–Good Manufacturing Practices) standards.
  • To address these challenges, the government launched the SPI Scheme in FY 2021–22, to run till FY 2025–26.

Quick Facts

  • Purpose: To make India a global leader in the pharmaceutical sector.
  • Project Management Consultant: SIDBI (Small Industries Development Bank of India).
  • Tenure: FY 2021–22 to FY 2025–26.
  • Project Approval: Done by a Scheme Steering Committee (SSC), chaired by the Secretary of the Department of Pharmaceuticals (DoP).

Objectives of SPI

  1. Strengthen pharma cluster infrastructure through financial aid for common facilities.
  2. Upgrade individual production units to Schedule M and WHO-GMP standards via subsidies.
  3. Promote knowledge generation in pharma and medical devices industry through:
    • Studies and surveys
    • Database creation
    • Collaboration with academia, industry leaders, and policymakers

Salient Features – Three Components of SPI

(A) Assistance to Pharmaceutical Industry for Common Facilities (API-CF)

  • Objective: To strengthen existing pharma clusters by creating shared facilities.
  • Examples of common facilities: Testing Centers, Training Centers, R&D Centers.
  • Beneficiaries:
    • Pharma units that form a Special Purpose Vehicle (SPV) with at least 5 members.
    • State-promoted pharma clusters.
  • Financial Assistance:
    • Up to 70% of the project cost (or 90% in Himalayan/North-East regions).
    • Maximum cap: ₹20 crore.

(B) Revamped Pharmaceutical Technology Upgradation Assistance Scheme (RPTUAS)

  • Objective: To help pharma units upgrade to Schedule-M & WHO-GMP standards.
  • Eligibility: Pharma units needing technology upgrades, with priority to MSMEs.
  • Incentives:
    • Subsidy for utilities, testing labs, waste management, etc.
    • Can be linked with state schemes for added benefits.
  • Financing Approach:
    • Unlike older credit-linked models, this uses a reimbursement-based subsidy, making it flexible.
  • Verification: Accountability ensured through a Project Management Agency.

(C) Pharmaceutical & Medical Devices Promotion and Development Scheme (PMPDS)

  • Objective: To support the overall growth of pharma and medical device sectors.
  • Activities Covered:
    • Studies, surveys, and awareness programs
    • Database creation
    • Industry promotion activities

Why is SPI Important?

  • Bridges the gap between India’s low-cost pharma dominance and the need for high-value, high-quality production.
  • Encourages cluster-based development, which is cost-effective and globally competitive.
  • Helps Indian pharma units achieve international certification standards (like WHO-GMP), which are essential for exports.
  • Promotes not just manufacturing, but also knowledge building and industry–academia collaboration.

In summary: The Strengthening Pharmaceuticals Industry (SPI) Scheme is a holistic initiative. It combines infrastructure development (API-CF), technology upgradation (RPTUAS), and knowledge promotion (PMPDS). Together, these pillars aim to transform India from being the “pharmacy of the world” in terms of generics, into a true global leader in the pharmaceutical and medical devices sector.

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