PLI Scheme for Pharmaceuticals
The Government of India has renewed its Production Linked Incentive (PLI) scheme to boost domestic pharmaceutical manufacturing. This initiative focuses on increasing the production of critical pharmaceutical products. The Department of Pharmaceuticals has invited applications from manufacturers for 11 essential products. This move aims to strengthen India’s self-reliance in pharmaceuticals and reduce dependence on imports.
About PLI Scheme
The PLI scheme was first launched in July 2020. It aims to incentivise domestic manufacturing in various sectors, including pharmaceuticals. The scheme has a financial outlay of ₹6,940 crore. It covers 41 products, including key starting materials (KSMs), drug intermediates (DIs), and active pharmaceutical ingredients (APIs). The PLI framework is part of a broader strategy to enhance production capabilities across 14 key sectors.
Eligible Products
The recent round includes widely used antibiotics and painkillers. Notable products are Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin, and Diclofenac Sodium. These products were either unsubscribed or only partially subscribed in earlier rounds. The government has set a deadline of June 14 for applications.
Application Conditions
Manufacturers must adhere to specific conditions to qualify. These include capacity-based allocations and product-wise incentive ceilings. For chemical synthesis products, the incentive will last until FY2028. Fermentation-based products will be eligible until FY2029. Companies with previously cancelled or withdrawn approvals cannot reapply.
Government’s Strategic Focus
This initiative reflects the government’s commitment to reducing reliance on pharmaceutical imports. It aims to build resilient supply chains for essential raw materials. The Pharmaceuticals Export Promotion Council of India (Pharmexcil) encourages its members to take advantage of this renewed opportunity. The scheme is seen as platform for enhancing manufacturing capabilities.
Impact on the Pharmaceutical Sector
Since the inception of the PLI scheme, there has been substantial investment in the sector. As of November 2024, 764 applications had been approved across various sectors, amounting to an investment of approximately ₹1.61 lakh crore. The government has disbursed ₹14,020 crore in incentives to various sectors, including pharmaceuticals. This push is expected to position India as a global hub for high-quality pharmaceutical manufacturing.
Future Prospects
The renewed PLI scheme is poised to drive further growth in the pharmaceutical industry. It aims to create jobs and enhance exports. The initiative is critical for ensuring that India meets its domestic pharmaceutical needs while also catering to global demands.
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