Govt of India Rolls Out PLI Scheme for Pharma Products

• 27 May 2025
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To support the establishment of new manufacturing capacity for up to 11 eligible products, the Center's Department of Pharmaceuticals is seeking submissions from pharmaceutical companies for a production linked incentive (PLI) program. The list includes Diclofenac Sodium, Tetracycline, Erythromycin, Streptomycin, Gentamycin, and Ciprofloxacin. The Department stated in a notification earlier this month that these products are either unsubscribed or partially subscribed eligible. The companies have been given till June 14 to submit their applications.

Certain conditions must be met including product-specific incentive ceilings, allocation based on available capacities and incentive limits up to the production tenure, which will be up to FY28 for chemical synthesis goods and up to FY29 for fermentation-based products. According to the statement, companies that previously received clearance but later withdrew or had their approval revoked are not eligible to apply. The Indian Pharmaceuticals Export Promotion Council has encouraged its members to take the decision’s advantage.

Director General Sh. Raja Bhanu of Pharmexcil said that the program offers a great chance to improve their production capacity in essential pharmaceutical components.

The move by the Department of Pharmaceuticals is in keeping with India's focus on promoting domestic production of essential raw materials, medication intermediates, and active pharmaceutical components. In order to increase output, create jobs, and enhance exports by encouraging domestic manufacturing, the government launched PLI plans for 14 important industries four years ago. These industries included pharmaceuticals, medical equipment, and bulk medications.

According to official papers, the KSM, DI, and API program, whose rules were released in July 2020 and updated in October of the same year, covers 41 goods and has a ₹6,940 crore financial outlay. The government declared in March 2025 that 764 applications had been accepted under the plans for the 14 major industries and that around Rs. 1.61 lakh crore (i.e., $18.72 billion) had been invested as of November 2024. 

Large-scale electronics manufacturing (LSEM), IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing, white goods, automobiles and auto components and drones and drone components are among the ten industries for which incentives totaling approximately Rs. 14,020 crore have been distributed under the PLI schemes.

Source: The Hindu