Amitabh Kant said some studies have indicated that the earlier scheme of 200% tax incentive on Research and Development activities has been 'misused'
NITI Aayog CEO Amitabh Kant on Tuesday said the production-linked incentive (PLI) scheme, announced for 10 key sectors including pharma and medical devices manufacturing among others, should lead the country towards drug innovations.
Speaking at a virtual interactive session at BioAsia 2021, Kant said some studies have indicated that the earlier scheme of 200 per cent tax incentive on Research and Development activities has been "misused".
"There has been good enthusiasm for these schemes. We have received over 215 applications from about 83 manufacturers. I personally think that the PLI scheme should lead us self-sufficiency in API (active pharmaceutical ingredient), but it should lead us for a big boost in innovative drug development," he said.
Telangana Minister for IT and Industries K T Rama Rao who also participated in the panel discussion, said moves such as reduction of 200 per cent tax incentive to the present 100 per cent would act as counterproductive for innovation and discourage innovation such as new drug discovery especially the NDA government's "Self-Reliant India" initiative.
"India is still known as a low-cost copycat destination. We dont really enjoy it when it comes to IPR or innovative products etc...This manufacturing linked incentive- R&D subsidy which has been reduced, this kind of works counter-productive to what we are trying to achieve when the hon'ble prime Minister talks about self-Reliant India," Rama Rao said.
Kant said there has to be greater cooperation between industry and academia for innovation and discoveries.
Kiran Mazumdar-Shaw, Executive Chairperson, Biocon, Swati Piramal, Vice Chairperson, Piramal Group, Nilesh Gupta, Managing Director, Lupin Ltd. and Sriram Shrinivasan, India Life Sciences Leader, EY also participated in the panel discussion.