In order to capture the huge opportunity in biotech sector, the government of India needs to fine-tune the Production Linked Incentive scheme to fit the unique needs of the industry. Discuss (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· The biotech industry braved the challenges of Covid-19 to develop innovative solutions such as diagnostics, therapies and vaccines at speed and scale to save countless lives.
Fine-tuning the PLI scheme
· Instead of a one-size-fits-all approach, the government needs to fine-tune the PLI scheme to fit the unique needs of the biopharmaceutical industry.
· For example, development of biologic molecules is costly and time consuming, requiring complex clinical studies over 5-7 years.
· In comparison, cost of development and gestational times (1-2 years) is much lower for generic small molecule drugs.
· Hence, the weightage given to regulatory submissions for biologics must be higher than for generic formulations.
· To give a stimulus to export-oriented industries, the SEZ tax holiday benefits need to be reintroduced with a deduction of 50% export profits for the next five years for existing units.
· The government will need to first identify key emerging research opportunities for innovation and bring back the 200% weighted tax deduction covering all R&D expenditures.
· ‘As capital is the life-blood of start-ups, the government should augment BIRAC funding to `3,000 crore annually so that it can provide start-ups with the necessary funds to scale up.
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ANIL KUMAR RAM 3 years
Please review
IAS Parliament 3 years
Try to emphasize more on fine tuning of the scheme. Keep Writing.
Swathi 3 years
Dear ShankarIAS Team,
Requesting to review and provide your comments to improve myself.
IAS Parliament 3 years
Try to focus on the changes needed in the scheme and add data to support your arguments if required. Keep Writing,.
Swathi 3 years
