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UP’s Rs 12,000 Cr Pharma Park Signals Big Push for API Self-Reliance: A Closer Look at India’s Bulk Drug Manufacturing Drive

Touted as one of the most advanced industrial pharma zones in the country, UP's Bulk Drug Pharma Park project is being seen as a key piece in India’s larger plan to reclaim control over the production of Active Pharmaceutical Ingredients (APIs) and drug intermediates.

• By Pooja Chaturvedi Sah
• New Delhi
• Jun 16, 2025

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The Uttar Pradesh government is making a bold bid to put the Bundelkhand region on the global pharma manufacturing map. A mega Bulk Drug Pharma Park — spread across 1,472 acres in Lalitpur district — is in the works with a projected investment of ₹12,000 crore. Touted as one of the most advanced industrial pharma zones in the country, the project is being seen as a key piece in India’s larger plan to reclaim control over the production of Active Pharmaceutical Ingredients (APIs) and drug intermediates.

The state-run Uttar Pradesh State Industrial Development Authority (UPSIDA), which is leading the project, has already secured environmental clearances for Phase 1. The initial 353 acres are open for allotment. Plug-and-play infrastructure, solvent recovery systems, climate-controlled storage, and a Zero Liquid Discharge (ZLD) system form the core features of the park, which is expected to create around 14,000 direct and indirect jobs.

“We’re not just building infrastructure, we’re laying the foundation for UP’s rise as a serious API player,” said Mayur Maheshwari, CEO of UPSIDA, speaking with media at a recent investor roadshow in Ahmedabad. Several companies — including CSL Life Sciences, Obmed Pharma, Gaman Irradiation, and Mediheath Diagnostic — signed MoUs for projects ranging from formulation units to IV plants and diagnostic centres.

A separate 350-acre medical devices park is also being planned near Greater Noida under the Yamuna Expressway Industrial Development Authority, with the aim of housing over 100 manufacturing units.

A Broader Blueprint: India’s Bulk Drug Park Strategy

The Lalitpur project is the latest addition to a nationwide effort to restore India’s lost edge in bulk drug manufacturing. For years, India has led the global generic drug market — supplying nearly 20% of the world’s generics — but has remained heavily dependent on imports for raw materials like APIs, Key Starting Materials (KSMs), and intermediates. Much of this dependency rests on Chinese imports, a risk highlighted sharply during the COVID-19 pandemic when supply chains buckled under pressure.

In response, the Centre launched the Scheme for Promotion of Bulk Drug Parks in 2020, with a total outlay of ₹3,000 crore. After a competitive evaluation, three states were granted 'in-principle' approval to develop parks with central assistance: Gujarat, Himachal Pradesh, and Andhra Pradesh.

Gujarat’s park will be located on over 2,000 acres in Bharuch

Himachal Pradesh’s in Una spans around 1,400 acres

Andhra Pradesh’s is being developed in East Godavari over a 2,000-acre site

Each state will receive up to ₹1,000 crore to build common infrastructure like effluent treatment plants, steam networks, testing facilities, and warehousing.

The Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers, is overseeing the implementation.

The PLI Backstop: Incentivising Core API Production

Running in parallel to the bulk drug park scheme is the government’s Production Linked Incentive (PLI) Scheme for Bulk Drugs, which incentivises the domestic manufacture of 41 identified APIs. These include high-import-dependence molecules such as Penicillin G, Dapsone, and Rifampicin.

Under the PLI scheme:

51 projects have been approved so far

14 of these have already started production

₹3,651 crore of investment had been grounded by the end of 2023

Incentives range from 10% to 20% of eligible sales, depending on the manufacturing method

The scheme has already enabled India to resume domestic production of Penicillin G after more than three decades.

Why Bulk Drug Parks Matter

The significance of these parks extends beyond manufacturing volumes. Industry veterans point out that centralised bulk drug parks — with shared environmental infrastructure and technical facilities — drastically reduce cost barriers for companies looking to enter or expand API production.

“India’s problem wasn’t lack of know-how. It was lack of cost competitiveness due to compliance overheads and scattered infrastructure,” said a senior executive at a Hyderabad-based pharmaceutical major. “Common facilities are a game-changer.”

The government estimates that each park could draw investments of over ₹10,000 crore and generate 10,000–20,000 jobs. More importantly, they aim to anchor a robust ecosystem of research, production, and export readiness.

The Numbers Behind the Shift

India exported ₹1.75 lakh crore worth of pharmaceutical products in FY22

Of this, bulk drugs and intermediates accounted for ₹33,320 crore

Yet, bulk drugs made up over 60% of pharma imports by value

India currently imports APIs worth nearly ₹50,000 crore annually, mostly from China

With global disruptions and rising geopolitical concerns, policymakers are treating API self-sufficiency as a national health and economic security priority.

Outlook: Lalitpur and Beyond

As the Lalitpur pharma park begins to take shape, it reflects a renewed intent by both state and central governments to not just scale production but restructure the underlying value chain of India’s pharmaceutical industry.

Uttar Pradesh, already accounting for 17% of India’s domestic pharma sales, is aiming to become the next big centre for raw drug materials. "We’re filling the space left behind by places like Himachal and Sikkim after the end of their tax incentives," Maheshwari pointed out. “Now, investors are looking for low-cost, compliant, long-term destinations — and UP fits that bill.”

With its combination of state investment, central backing, and private interest, the Lalitpur project may be the most visible sign yet that India is serious about reshoring its pharma backbone — molecule by molecule.