Production Linked Incentive Schemes Have Strengthened India’s Pharmaceutical, Bulk Drugs And Medical Devices Manufacturing Ecosystem

Key Highlights:

• Government's Production Linked Incentive (PLI) Schemes have significantly strengthened India's pharmaceutical, bulk drugs, and medical devices manufacturing ecosystem.
• Three specific schemes are implemented by the Department of Pharmaceuticals: PLI Scheme for Bulk Drugs, PLI Scheme for Pharmaceuticals, and PLI Scheme for Medical Devices.
• The PLI Scheme for Bulk Drugs (₹6,940 crore outlay) aims to reduce import dependence for 41 critical Active Pharmaceutical Ingredients (APIs), Key Starting Materials (KSMs), and Drug Intermediates (DIs).
• The PLI Scheme for Pharmaceuticals (₹15,000 crore outlay) has attracted ₹46,744 crore in investment, exceeding its target.
• The PLI Scheme for Medical Devices (₹3,420 crore outlay) has facilitated domestic production of 57 unique high-end medical devices.
• These schemes align with the visions of Make in India and Atmanirbhar Bharat, promoting self-reliance and global competitiveness.

Detailed Insights:

• The schemes are implemented by the Department of Pharmaceuticals under the Ministry of Chemicals & Fertilizers.
• The PLI Scheme for Bulk Drugs has commissioned 39 projects for manufacturing 28 APIs/KSMs, including Penicillin-G and Clavulanic Acid.
• This scheme has generated employment for around 5,127 persons and achieved sales of ₹3,792.49 crore as of June 2026.
• The PLI Scheme for Pharmaceuticals supports manufacturing of high-value products like biopharmaceuticals, complex generics, and orphan drugs.
• It has created 1,21,294 jobs and achieved cumulative sales of ₹4,02,869 crore, including ₹2,57,370 crore in exports.
• The PLI Scheme for Medical Devices provides a 5% incentive on incremental sales for five years.
• It covers four broad segments: cancer care/radiotherapy, radiology/imaging, anaesthesia/cardio-respiratory/renal care, and implants.
• The scheme has attracted global manufacturers like GE Healthcare and Siemens to establish or expand operations in India.
• The PLI framework links incentives to actual production and sales, enhancing supply-chain resilience and manufacturing capacity.

Key Concepts Involved:

• Production Linked Incentive (PLI) Scheme: A government initiative offering incentives on incremental sales to boost domestic manufacturing in strategic sectors.
• Active Pharmaceutical Ingredients (APIs): The biologically active components in a drug that produce the desired therapeutic effect.
• Key Starting Materials (KSMs)/Drug Intermediates (DIs): Chemical compounds used as foundational building blocks in the synthesis of APIs.
• Make in India: A government initiative to encourage companies to manufacture their products in India and boost the manufacturing sector.
• Atmanirbhar Bharat: A vision for India to become self-reliant across various sectors, reducing dependence on imports.