Could the Centre's PLI Scheme Transform Drug Manufacturing in India?
Click to start listening
Synopsis
The Indian government is taking a bold step to enhance its drug manufacturing capabilities through the PLI scheme. This initiative not only aims to boost the production of essential medicines but also supports local manufacturers, ensuring that critical medicines are readily available. Discover how this scheme could reshape the pharmaceutical landscape in India.
Key Takeaways
- 11 key pharmaceutical products are targeted under the PLI scheme.
- Applications must be submitted by June 14.
- Incentives based on production capacity and timeline.
- Scheme aims to boost domestic drug production.
- First launched in 2020, revised for industry needs.
New Delhi, May 25 (NationPress) The Department of Pharmaceuticals has called for drug manufacturers to submit applications under the Production Linked Incentive (PLI) scheme, aimed at establishing new manufacturing facilities for 11 essential pharmaceutical products.
This initiative seeks to enhance India’s domestic drug production capabilities.
The targeted products include crucial antibiotics and pain relievers such as Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin, and Diclofenac Sodium.
These medications were either not subscribed or had limited subscriptions during previous phases of the scheme. Manufacturers have until June 14 to submit their applications.
The PLI scheme includes specific conditions. Incentives will be awarded based on existing capacity, a stipulated limit for each product, and the production schedule.
For products derived from chemical synthesis, the incentive period will extend until the financial year 2027-28, while for fermentation-based products, it will continue until 2028-29.
However, companies that had previous approvals but later withdrew or had their approvals revoked cannot reapply.
The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has urged its members to seize this opportunity.
Pharmexcil's Director General, Raja Bhanu, mentioned that this scheme presents a substantial opportunity for firms to enhance their manufacturing capacity concerning essential drug ingredients.
This new call for applications is part of the government’s ongoing initiative to bolster the domestic production of critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs).
The PLI scheme for these categories was first launched in 2020 and subsequently revised to better align with the needs of the industry. It encompasses a total of 41 products and has a financial allocation of Rs 6,940 crore.
This initiative is part of a wider effort by the government, which introduced PLI schemes for 14 major sectors four years ago.
These sectors include bulk drugs, medical devices, electronics, food processing, and automobiles.
According to official statistics, by November 2024, approximately 764 applications had been approved under these schemes, resulting in an investment of Rs 1.61 lakh crore (around $18.7 billion).
The government has disbursed Rs 14,020 crore in incentives to date across 10 sectors.
Point of View
The Centre's renewed focus on enhancing domestic drug production through the PLI scheme is commendable. It reflects a strategic shift towards self-reliance in pharmaceuticals, ensuring that critical medications are available to the population while also fostering growth in the manufacturing sector. It is essential that the government continues to support these initiatives to create a robust pharmaceutical ecosystem.
NationPress
23/07/2025
Frequently Asked Questions
What is the PLI scheme?
The Production Linked Incentive (PLI) scheme is an initiative by the Indian government to encourage domestic manufacturing of critical goods, including pharmaceuticals, by offering financial incentives.
Who can apply for the PLI scheme?
Drug manufacturers who are interested in setting up new manufacturing units for specific pharmaceutical products can apply for the scheme.
What are the eligibility criteria for the PLI scheme?
Manufacturers must meet certain conditions outlined in the scheme, including existing capacity and compliance with the production timeline. However, companies with prior cancellations of approvals are not eligible.
What is the deadline for applications?
Manufacturers have until June 14 to submit their applications for the PLI scheme.
How does the PLI scheme impact drug production in India?
The PLI scheme aims to enhance India's domestic drug production capabilities, ensuring the availability of essential medicines and supporting local manufacturers.
