Indian Economy News

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

The Production Linked Incentive (PLI) Schemes are strengthening India’s pharmaceutical and medical devices manufacturing ecosystem by supporting domestic production, attracting investment, reducing import dependence and encouraging technology adoption. The PLI Scheme for Bulk Drugs, approved in 2020 with a financial outlay of Rs. 6,940 crore (US$ 948.09 million), was designed to strengthen domestic manufacturing of 41 critical products, including Active Pharmaceutical Ingredients (APIs), Key Starting Materials (KSMs) and Drug Intermediates (Dis). Under the scheme, 48 projects have been approved, with investment of Rs. 5,210.74 crore (US$ 548.68 million) recorded as of June 2026, exceeding the committed investment of Rs. 4,330 crore (US$ 455.93 million). As of June 2026, 39 projects covering 28 APIs and KSMs had been commissioned. Beneficiaries had achieved sales of Rs. 3,792.49 crore (US$ 399.33 million), including exports of Rs. 560.16 crore (US$ 58.98 million), while generating employment for around 5,127 people. The scheme has also supported domestic production of fermentation-based products including Penicillin-G, Clavulanic Acid and Rifampicin.

The PLI Scheme for Pharmaceuticals, approved in 2021 with a financial outlay of Rs. 15,000 crore (US$ 2.02 billion) is supporting manufacturing of biopharmaceuticals, complex generics, patented and off-patent drugs, orphan drugs, auto-immune medicines and other high-value pharmaceutical products. As of June 2026, 55 applicants, including 20 MSMEs, had been selected, attracting actual investment of Rs. 46,744 crore (US$ 4.92 billion) against a target of Rs. 17,275 crore (US$ 1.82 billion). Beneficiaries had generated cumulative sales of Rs. 4.03 lakh crore (US$ 42.42 billion), including exports of Rs. 2.57 lakh crore (US$ 27.10 billion) and created 1,21,294 jobs. Meanwhile, the PLI Scheme for Medical Devices, approved in 2020 with an outlay of Rs. 3,420 crore (US$ 467.21 million), has supported production of 57 unique medical devices, including MRI machines, CT scanners, Cath Labs, Linear Accelerators, C-Arms, mammography machines, ultrasound systems, anaesthesia machines and heart valves. Together, the three schemes are strengthening capabilities across critical raw materials, APIs, high-value medicines and advanced medical technologies, supporting the development of a more resilient and globally competitive manufacturing ecosystem.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.