Production Linked Incentive Schemes Strengthen India's Pharma and MedTech Manufacturing
The Government of India's Production Linked Incentive (PLI) schemes have significantly strengthened the country's pharmaceutical, bulk drugs, and medical devices manufacturing ecosystem. Implemented by the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers, these schemes align with the Make in India and Atmanirbhar Bharat initiatives to enhance manufacturing capabilities, reduce import dependence, and encourage technology adoption.
PLI Scheme for Bulk Drugs: Achieving Self-Reliance in Critical APIs
Approved in 2020 with a financial outlay of ₹6,940 crore, the Bulk Drugs PLI scheme aims to strengthen domestic manufacturing of 41 identified critical products. The scheme has approved 48 projects, with actual investments reaching ₹5,210.74 crore as of June 2026, significantly exceeding the committed investment of ₹4,330 crore. Thirty-nine projects for manufacturing 28 APIs/Key Starting Materials (KSMs) have been commissioned, enabling domestic production of critical fermentation-based products including Penicillin-G, Clavulanic Acid, and Rifampicin that were previously import-dependent. Beneficiaries achieved sales of ₹3,792.49 crore with exports of ₹560.16 crore and generated employment for 5,127 persons. Key companies contributing to this success include Lyfius Pharma, Kinvan Private Limited, Andhra Organics Limited, Meghmani LLP, and Centrient Pharmaceuticals India, manufacturing critical products such as Penicillin G, Clavulanic Acid, Sulfadiazine, Atorvastatin, and Para Amino Phenol (PAP).
PLI Scheme for Pharmaceuticals: Driving High-Value Manufacturing
Approved in 2021 with a financial outlay of ₹15,000 crore, this scheme targets enhancement of India's manufacturing capabilities across biopharmaceuticals, complex generics, patented and off-patent drugs, orphan drugs, auto-immune medicines, and other high-value pharmaceutical products. Fifty-five applicants including 20 MSMEs have been selected, achieving remarkable investment of ₹46,744 crore against a target of ₹17,275 crore. The scheme generated cumulative sales of ₹4,02,869 crore including exports worth ₹2,57,370 crore from the commencement of the performance period in FY 2022-23 up to June 2026, while creating 121,294 jobs. Major pharmaceutical companies including Sun Pharmaceutical Industries, Aurobindo Pharma, Dr. Reddy's Laboratories, Lupin, Cipla, Intas Pharmaceuticals, and Torrent Pharmaceuticals have expanded capacities for complex generics, biosimilars, and auto-immune medicines.
PLI Scheme for Medical Devices: Advancing Indigenous Medical Technology
Approved in 2020 with an outlay of ₹3,420 crore, this scheme provides a 5% incentive on incremental sales of eligible medical devices manufactured in India for five years. It covers four segments: cancer care/radiotherapy devices; radiology and imaging devices; anaesthesia, cardio-respiratory and renal care devices; and implants including implantable electronic devices. The scheme has enabled domestic production of 57 unique medical devices that were previously imported, including MRI machines, CT scanners, Cath Labs, Linear Accelerators, C-Arms, mammography machines, ultrasound systems, anaesthesia machines, and heart valves. Global manufacturers such as GE Healthcare, Siemens, Philips, Varex, Nipro, and Omron have established or expanded manufacturing operations in India, with several participants entering into technology-transfer arrangements with global partners.