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PLI Scheme - pharmaceuticals

Government Schemes & Missions · Production incentives

What it is

Production Linked Incentive scheme for pharmaceuticals, approved Feb 2021 with a Rs 15,000 cr outlay to FY29, paying incentives on incremental sales of high-value products - biopharmaceuticals, complex generics, patented and orphan drugs

55 companies selected including 22 MSMEs; a separate Bulk Drugs PLI (2020, Rs 6,940 cr) covers KSMs, intermediates and APIs

Impact on industries

  • Investment ran ahead of commitment - ~Rs 45,158 cr invested by Mar 2026 vs Rs 17,275 cr committed, on cumulative sales of ~Rs 3.35 lakh cr
  • Import substitution delivered: 191 bulk drugs made in India for the first time and ~55,000 MT across 26 critical APIs; penicillin G now exported
  • Disbursal lags outlay, and the incentive window closes across FY26-29 with cost competitiveness after it untested
  • Benefit skews to players able to fund capacity ahead of receipt; small units participate mainly via the bulk-drug window

Industries affected