Critically examine how domestic initiatives like PMBJP, GST rationalisation, and PLI schemes can protect India’s pharmaceutical sector from global disruptions such as U.S. tariffs. Discuss their potential strengths and limitations in sustaining growth.

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PocketIAS · Accepted Answer

India’s pharmaceutical sector, a global supplier of generics and APIs, faces vulnerabilities from external shocks such as U.S. tariffs, export restrictions, and supply chain disruptions. Domestic initiatives like PMBJP, GST rationalisation, and PLI schemes help mitigate these risks and sustain growth:

* **PMBJP (Pradhan Mantri Bhartiya Janaushadhi Pariyojana):**

* Strengthens local manufacturing by ensuring steady demand for generics.
  * Reduces dependence on imported drugs, enhancing resilience against global price shocks.
  * Improves accessibility and affordability of medicines domestically.

* **GST Rationalisation:**

* Simplifies compliance and reduces cascading taxes, lowering production costs.
  * Enhances competitiveness of Indian pharmaceuticals in international markets.
  * Supports smoother supply chain operations, reducing logistical bottlenecks.

* **PLI (Production-Linked Incentive) Schemes:**

* Encourages domestic manufacturing of critical APIs and high-value formulations.
  * Promotes technological upgradation and R&D investment.
  * Facilitates export diversification to reduce reliance on specific markets.

**Limitations:**

* PMBJP prioritises affordability over innovation, limiting advanced drug development.
* GST benefits larger firms more than smaller players, potentially widening structural gaps.
* PLI requires efficient monitoring; delayed implementation may hinder capacity expansion.
* Global regulatory or geopolitical disruptions remain beyond domestic policy control.

**Way Forward:**
Integrating these initiatives with robust R&D, quality infrastructure, and international regulatory alignment will strengthen India’s position as a resilient pharmaceutical hub and sustain growth amid global uncertainties.

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