India’s pharmaceutical sector is seeing significant progress under the Production Linked Incentive (PLI) Scheme for Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs). A total of 48 projects have been approved to strengthen local manufacturing of critical components, many of which were previously dependent on imports.
The initiative is aimed at reducing supply chain vulnerabilities, particularly for APIs essential to life-saving medications. As of December 2024, total investment under the scheme has reached ₹4,254 crore—surpassing the original commitment of ₹3,938.5 crore. This has led to cumulative sales of ₹1,556 crore, including ₹412 crore in exports, and avoided import expenditures worth ₹1,144 crore.
The approved projects cover the development of 25 key products, including Penicillin G, Rifampicin, Diclofenac sodium, Vitamin B6, and Artesunate, among others. Notable participants include Macleods Pharmaceuticals, Hetero Drugs, Granules India, and Karnataka Antibiotics and Pharmaceuticals Ltd.
Scheme enhances self-sufficiency and job creation in pharma sector
The Ministry of Chemicals and Fertilizers has also conducted awareness campaigns through webinars, press releases, FAQs, and stakeholder consultations to increase participation. A dedicated online helpdesk was established to streamline application processes and provide real-time support.
The scheme is part of a larger national effort to strengthen India’s healthcare resilience by boosting domestic capabilities in essential drug components. In addition to promoting self-reliance, the initiative is expected to support job creation and foster R&D in drug formulation and synthesis.
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By reducing dependence on foreign suppliers and building scalable infrastructure, the PLI initiative marks a strategic shift toward safeguarding the country’s pharmaceutical supply chain in the long term.