Production Linked Incentive Schemes Strengthen India's Pharma and MedTech Manufacturing
The Government of India's Department of Pharmaceuticals has reported significant achievements under three Production Linked Incentive (PLI) schemes designed to strengthen the country's pharmaceutical, bulk drugs, and medical devices manufacturing ecosystem. The schemes, aligned with the Make in India and Atmanirbhar Bharat vision, have collectively attracted substantial investments, expanded manufacturing capabilities, reduced import dependence, and generated significant employment.
PLI Scheme for Bulk Drugs: ₹6,940 Crore Outlay
The Bulk Drugs PLI Scheme, approved in 2020 with a financial outlay of ₹6,940 crore, targeted 41 identified critical products to reduce import dependence for APIs and essential pharmaceutical building blocks. As of June 2026, 48 projects have been approved with actual investment reaching ₹5,210.74 crore, exceeding the committed investment of ₹4,330 crore. Thirty-nine projects for manufacturing 28 APIs/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 including exports of ₹560.16 crore, while generating employment for approximately 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: ₹15,000 Crore Outlay
The Pharmaceuticals PLI Scheme, approved in 2021 with a ₹15,000 crore outlay, aims to enhance manufacturing capabilities and encourage a shift toward high-value pharmaceutical products including biopharmaceuticals, complex generics, patented and off-patent drugs, orphan drugs, auto-immune medicines, and specified APIs/DIs/KSMs not covered under the Bulk Drugs scheme. 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 121,294 jobs and 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. Major participants include Sun Pharmaceutical Industries, Aurobindo Pharma, Dr. Reddy's Laboratories, Lupin, Cipla, Intas Pharmaceuticals, and Torrent Pharmaceuticals, which have expanded capacities for complex generics, biosimilars, and other high-value pharmaceuticals.
PLI Scheme for Medical Devices: ₹3,420 Crore Outlay
The Medical Devices PLI Scheme, approved in 2020 with ₹3,420 crore outlay, provides a 5% incentive on incremental sales of eligible medical devices manufactured in India for five years. The scheme covers four segments: cancer care/radiotherapy devices; radiology and imaging devices; anaesthesia, cardio-respiratory and renal care devices; and implants including implantable electronic devices. Production has commenced for 57 unique medical devices including MRI machines, CT scanners, Cath Labs, Linear Accelerators, C-Arms, mammography machines, ultrasound systems, anaesthesia machines, and heart valves. The scheme has attracted global manufacturers such as GE Healthcare, Siemens, Philips, Varex, Nipro, and Omron, who have established or expanded manufacturing operations in India, with several companies entering technology-transfer arrangements with global partners.