New Delhi, Jan 2 (KNN) Preference for public procurement programs in the pharmaceutical sector will be given to domestically produced drugs with minimum of 75% local content in the ongoing fiscal which will go up to 90% by 2023-25, the Department of Pharmaceuticals (DoP) has said.

The move is likely to benefit the micro, small and medium enterprises (MSMEs) in the sector.

The Department of Industrial Policy and Promotion (DIPP) had identified DoP as the nodal department for implementing the provisions related to goods, services or works related to the pharmaceutical sector in promoting Make in India.

The DoP said for formulations that are not manufactured in India, the minimum local content shall be 10% in 2018-19.

An order by DoP said that this will go up to 15% in 2019-21, 20 per cent in 2021-23 and up to 30 per cent in 2023-25 for the formulations not manufactured in the country.

The order will be applicable to procurement of medicines made by state governments or PSUs under state governments or local bodies under centrally sponsored schemes that are fully or partially funded by the Centre.

The DoP further said “purchase preference shall be provided by all government procuring entities to local suppliers of pharmaceutical formulations in various dosages forms.”