PLI schemes strengthen India’s pharmaceutical, bulk drugs and medical devices manufacturing ecosystem

The Production Linked Incentive (PLI) schemes implemented by the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers have helped expand domestic manufacturing in India’s pharmaceutical and medical devices sectors, reduce import dependence and promote technology adoption, according to the government.

The initiatives cover critical pharmaceutical raw materials, high-value medicines and advanced medical devices and are aimed at strengthening manufacturing capabilities in line with the Make in India and Atmanirbhar Bharat initiatives.

The three key schemes are the PLI Scheme for Bulk Drugs, the PLI Scheme for Pharmaceuticals and the PLI Scheme for Promoting Domestic Manufacturing of Medical Devices.

Bulk Drugs PLI Strengthens Domestic API Manufacturing

The PLI Scheme for Bulk Drugs was approved in 2020 with a financial outlay of ₹6,940 crore. It seeks to strengthen domestic manufacturing of 41 identified critical products and reduce import dependence on APIs and other essential pharmaceutical building blocks.

Under the scheme, 48 projects have been approved. As of June 2026, investments of ₹5,210.74 crore had been made against a committed investment of ₹4,330 crore.

A total of 39 projects manufacturing 28 APIs/KSMs have been commissioned.

The scheme has enabled domestic production of fermentation-based products including Penicillin-G, Clavulanic Acid and Rifampicin, which were earlier largely dependent on imports.

As of June 2026, beneficiaries had recorded cumulative sales of ₹3,792.49 crore, including exports worth ₹560.16 crore, while generating employment for around 5,127 people.

Projects in Visakhapatnam, Andhra Pradesh, have contributed to the development of domestic manufacturing capacity for critical pharmaceutical ingredients. Companies including Lyfius Pharma, Kinvan Private Limited, Andhra Organics Limited, Meghmani LLP and Centrient Pharmaceuticals India Pvt. Ltd. have contributed to manufacturing of products such as Penicillin G, Clavulanic Acid, Sulfadiazine, Atorvastatin and Para Amino Phenol.

Pharmaceuticals PLI Drives High-Value Manufacturing

The PLI Scheme for Pharmaceuticals, approved in 2021, has a financial outlay of ₹15,000 crore and is aimed at increasing investment and production while encouraging manufacturing of high-value pharmaceutical products in India.

The scheme covers categories including biopharmaceuticals, complex generics, patented and off-patent drugs, orphan drugs, auto-immune medicines, as well as specified APIs, drug intermediates and key starting materials not covered under the Bulk Drugs PLI scheme.

A total of 55 applicants, including 20 MSMEs, have been selected under the scheme.

As of June 2026, the scheme had attracted ₹46,744 crore in actual investment, significantly exceeding the targeted investment of ₹17,275 crore.

The initiative has generated 1,21,294 jobs. Beneficiary companies recorded cumulative sales of ₹4,02,869 crore, including exports worth ₹2,57,370 crore, from the beginning of the performance period in FY 2022-23 through June 2026.

Major pharmaceutical companies, including Sun Pharmaceutical Industries, Aurobindo Pharma, Dr. Reddy’s Laboratories, Lupin, Cipla, Intas Pharmaceuticals and Torrent Pharmaceuticals, have expanded manufacturing capacities for complex generics, biosimilars, auto-immune medicines and other high-value pharmaceutical products.

Medical Devices PLI Expands Indigenous Production

The PLI Scheme for Promoting Domestic Manufacturing of Medical Devices was approved in 2020 with a financial outlay of ₹3,420 crore.

The scheme provides a 5 per cent incentive on incremental sales of eligible medical devices manufactured in India for five years.

It covers four broad segments – cancer care and radiotherapy medical devices; radiology and imaging devices; anaesthesia, cardio-respiratory and renal care devices; and implants, including implantable electronic devices.

The scheme has facilitated the establishment of domestic manufacturing capabilities for high-end medical devices that were previously predominantly imported.

Production of 57 unique medical devices has commenced under the scheme, including MRI machines, CT scanners, Cath Labs, Linear Accelerators, C-Arms, mammography machines, ultrasound systems, anaesthesia machines and heart valves.

Global manufacturers including GE Healthcare, Siemens, Philips, Varex, Nipro and Omron have established or expanded manufacturing operations in India. Several participating companies have also entered into technology-transfer arrangements with global partners.

Domestic manufacturers have expanded capabilities in the implant segment, contributing to increased domestic production and export potential.

PLI Framework Builds Integrated Manufacturing Ecosystem

Together, the three PLI schemes cover the pharmaceutical and medical devices manufacturing chain, from critical raw materials and APIs to high-value medicines and advanced medical technologies.

By linking incentives to actual production and sales, the government said the PLI framework is helping translate the Make in India vision into manufacturing capacity while strengthening supply-chain resilience and India’s position as a manufacturing hub for pharmaceuticals and medical devices.