New Delhi
The Union government has allocated ₹15,000 crore under the Production Linked Incentive (PLI) scheme to enhance domestic manufacturing in the pharmaceutical sector. The initiative aims to reduce reliance on imports, promote local production, and attract significant investments.
Union Minister of State for Chemicals and Fertilizers Anupriya Patel, in a written reply to Lok Sabha, outlined the scheme's objectives, including incentives for manufacturing key starting materials (KSMs), drug intermediates (DIs), and active pharmaceutical ingredients (APIs). The PLI scheme for Bulk Drugs, with a budget of ₹6,940 crore, will run from FY 2022-23 to FY 2028-29.
The pharmaceutical PLI scheme targets high-value products such as patented drugs, biopharmaceuticals, anti-cancer drugs, and orphan drugs. Covering FY 2022-23 to FY 2027-28, it will provide financial support to 55 selected manufacturers.
Another ₹3,420 crore has been dedicated to the PLI scheme for medical devices, supporting the production of high-value equipment like MRI machines, CT scanners, and mammograms, previously imported. This scheme, active from FY 2022-23 to FY 2026-27, offers a 5% incentive on incremental sales over five years.
By October 2024, the schemes have drawn investments of ₹33,534 crore, far exceeding the projected ₹17,275 crore. Financial incentives worth ₹3,215 crore have been disbursed to 45 companies.
The initiatives also support investments in R&D, new plant machinery, and product registration, positioning India as a global leader in pharmaceutical and medical device manufacturing.