Business

PLI Scheme Boosts India’s Pharmaceutical Industry, Attracts Record Investments

• By Newsdesk
• New Delhi
• Dec 20, 2024

Business

India’s pharmaceutical sector is witnessing remarkable growth, fueled by the Modi government’s Production Linked Incentive (PLI) scheme. The initiative has accelerated the production of high-value drugs, including biopharmaceuticals, complex generics, and treatments for cancer, autoimmune disorders, and cardiovascular diseases, positioning India as a leader in global pharmaceutical innovation.

According to a report by the parliamentary standing committee on chemicals and fertilizers, the scheme has exceeded expectations. Investments under the PLI scheme have soared to Rs 33,344.66 crore, nearly double the initially committed amount of Rs 17,275 crore. Cumulative sales have reached Rs 2.26 crore, with exports contributing Rs 1.44 crore, as reported by News18.

Leading Pharma Players Reap Benefits

Launched in 2021 as part of the “Atmanirbhar Bharat” initiative, the PLI scheme aims to create global champions in the pharmaceutical industry by promoting advanced technology adoption and global value chain integration. It has drawn significant interest, with 278 applications received and 55 companies selected.

Top beneficiaries include industry leaders like Aurobindo Pharma, Cipla, Dr. Reddy’s Laboratories, Glenmark, and Sun Pharma, which have received incentives ranging from Rs 150 crore to Rs 330 crore. To date, Rs 3,220.52 crore has been disbursed for financial years 2022-23 and 2023-24, with an additional Rs 1,066 crore expected by FY 2024-25, pending approval by the Small Industries Development Bank of India (SIDBI), the scheme’s project management agency.

Reducing Import Dependency

A key objective of the PLI scheme is to reduce India’s reliance on imports for critical drugs and to enhance exports of high-value pharmaceuticals. By fostering innovation and focusing on high-value manufacturing, the initiative aims to make India a global pharmaceutical hub.

Government officials and industry experts have praised the scheme as transformative, noting its role in strengthening domestic manufacturing and attracting substantial investments. With its success, India is poised to cement its position as a global powerhouse in the pharmaceutical sector.