The scheme had an outlay of Rs450bn in FY20. With export incentives a major source of other operating income for India generic majors, GOI's decision to cap export benefit of Rs20m under Merchant Export from India Scheme (MEIS) will impact 2-3% of earnings estimates from our pharmaceutical coverage universe. If withdrawal of the incentive scheme remains permanent, it would impact gross margin of high export-oriented companies such as Divis Lab, Dishman Pharma, Biocon, Strides Pharma, Jubilant Life, IPCA, Dr.Reddy's, Lupin, Aurobindo,Cipla and...