Is India Boosting its Domestic Active Pharmaceutical Ingredient Manufacturing?
Synopsis
Key Takeaways
- Investment of Rs 4,763.34 crore in Bulk Drug Parks.
- Aimed at reducing reliance on imports for critical APIs.
- Production capacities established for 726 APIs/KSMs/DIs.
- Cumulative sales worth Rs 26,123 crore reported.
- Scheme set to conclude in 2028-29.
New Delhi, Dec 3 (NationPress) An investment of Rs 4,763.34 crore has been made in the past three and a half years under the Promotion of Bulk Drug Parks scheme, which is set to continue until September 2025. This investment surpasses the Rs 4,329.95 crore commitment for six years aimed at greenfield projects, according to government reports.
The PLI scheme for Bulk Drugs focuses on mitigating supply disruptions of essential Active Pharmaceutical Ingredients (APIs) that are crucial for manufacturing important medications with no alternatives. The scheme is allocated a budget of Rs 6,940 crore.
Union Minister of State for Chemicals and Fertilizers, Anupriya Patel, stated that production capacities for 26 KSMs/DIs/APIs have been established, which were previously imported. As of September 2025, this initiative has led to cumulative sales of Rs 2,315.44 crore, including exports of Rs 508.12 crore, thereby avoiding imports worth Rs 1,807.32 crore.
The PLI Scheme for Pharmaceuticals aims to bolster India's manufacturing capabilities, fostering investment and production growth in the pharmaceutical sector. It also promotes the diversification of products towards high-value items, incentivizing the production of advanced medicines, including biopharmaceuticals, complex generics, and drugs nearing patent expiration, as well as APIs/DIs/KSMs not covered under the Bulk Drugs PLI Scheme.
This scheme has a budget of Rs 15,000 crore. By September 2025, the committed investment of Rs 17,275 crore over six years has been significantly exceeded, with total investments reaching Rs 40,890 crore in just three and a half years across both brownfield and greenfield initiatives.
Currently, 726 APIs/KSMs/DIs are being produced under this scheme, including 191 that are manufactured for the first time.
The total domestic sales value of APIs/KSMs/DIs produced under this initiative by September 2025 is Rs 26,123 crore, contributing significantly to import reduction. The scheme is scheduled to run until the financial year 2028-29.