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Government Allocates Rs15,000 Crore for Pharma PLI Scheme to Bolster Domestic Production
It supports 55 chosen applicants to produce high-value drugs, including patented and off-patented medications, biopharmaceuticals, complex generics, cancer treatments, autoimmune therapies, and orphan drugs.
- By Newsdesk
- New Delhi
- Dec 09, 2024
In a significant move to enhance self-reliance in the pharmaceutical sector, the central government has announced a ₹15,000 crore Production Linked Incentive (PLI) scheme. This initiative aims to boost domestic manufacturing, reduce import dependency, and attract substantial investments.
Union Minister of State for Chemicals and Fertilizers, Anupriya Patel, highlighted the government's focus on encouraging the production of Bulk Drugs, Medical Devices, and critical pharmaceutical components. Speaking in the Lok Sabha, she revealed that the PLI scheme for Bulk Drugs—covering Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs)—has been allocated ₹6,940 crore. This initiative, running from FY 2022-23 to FY 2028-29, provides financial incentives to manufacturers of specified products.
The broader ₹15,000 crore PLI scheme for pharmaceuticals spans FY 2022-23 to FY 2027-28. It supports 55 chosen applicants to produce high-value drugs, including patented and off-patented medications, biopharmaceuticals, complex generics, cancer treatments, autoimmune therapies, and orphan drugs.
Additionally, a ₹3,420 crore allocation has been made for the PLI scheme targeting domestic production of medical devices. Scheduled for FY 2022-23 to FY 2026-27, this initiative incentivizes manufacturers with a 5% benefit on incremental sales of advanced devices like MRI machines, CT scanners, and ultrasound systems, which were predominantly imported in the past.
The schemes encourage investment in state-of-the-art infrastructure, research and development, and product registrations. As of October 2024, ₹33,534 crore has already been invested under these programs, significantly exceeding the projected ₹17,275 crore. Furthermore, ₹3,215 crore in incentives has been disbursed to 45 companies, underscoring the scheme's success in transforming India's pharmaceutical and medical device industries.