The Production Linked Incentive (PLI) scheme for promoting domestic manufacturing of key starting materials (KSMs), drug intermediates, and active pharmaceutical ingredients (APIs) was launched in 2022. The scheme has an outlay of Rs. 6,940 crores and aims to reduce India’s dependence on imports and strengthen the domestic pharmaceutical industry. A press release on the progress of the scheme was issued on August 9, 2024.
So far, 48 projects have been greenlighted out of 249 applications, with a significant contribution from micro, small, and medium enterprises (MSMEs). Notably, 32 projects have already been completed, resulting in a cumulative installed capacity of 56,679 MT per annum. Investments under the scheme have exceeded the target, reaching Rs. 4,024 crores against the projected Rs. 3,938 crores.
The scheme is expected to bolster India’s position as a global pharmaceutical hub and enhance its supply chain resilience.
The PLI scheme is a strategic move to reduce India’s reliance on imports for critical drug components and strengthen the domestic pharmaceutical industry. With several projects already completed and more in the pipeline, the scheme is poised to deliver substantial benefits to the country’s healthcare sector.
