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New Delhi, May 25:
In a significant move to boost India’s pharmaceutical self-reliance, the Department of Pharmaceuticals has opened applications under the Production Linked Incentive (PLI) scheme for manufacturers to establish new production units for 11 critical medicines, including widely used antibiotics and painkillers. The initiative aims to strengthen domestic manufacturing of essential drug ingredients and reduce the country’s dependence on imports, particularly from China.
Key Medicines Targeted
The list of products for this round includes Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin, and Diclofenac Sodium. These medicines were either unsubscribed or only partially subscribed in previous phases of the PLI scheme, prompting the government to renew its call for applications. Drug manufacturers have until June 14 to submit their proposals.
Incentives and Eligibility
The PLI scheme, first launched in 2020 and subsequently refined, provides financial incentives based on production capacity, a defined product-wise ceiling, and strict adherence to timelines. For chemical synthesis products, incentives will be available until the financial year 2027-28, while fermentation-based products are covered up to 2028-29. Companies that previously received approvals but withdrew or had their approvals cancelled are not eligible to reapply.
Industry Response and Broader Impact
The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has urged eligible companies to seize this opportunity. “This is a key moment for enhancing India’s production capabilities in essential drug ingredients,” said Raja Bhanu, Director General of Pharmexcil.
The PLI scheme for pharmaceuticals is part of a broader government strategy to promote domestic manufacturing across 14 major sectors, including electronics, automobiles, food processing, and medical devices. By November 2024, 764 applications had been approved across these sectors, resulting in investments of Rs 1.61 lakh crore (approximately $18.7 billion), with Rs 14,020 crore already disbursed as incentives.
Reducing Import Dependence
India currently relies heavily on imports for bulk drugs, with nearly 72% of such imports by value coming from China as of FY24. The PLI scheme, along with other government initiatives, is designed to address this vulnerability by promoting the domestic production of Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs).
Disclaimer:
This article is based on official government releases and industry statements as of May 26, 2025. Details regarding the PLI scheme, eligibility, and incentives are subject to change based on future government notifications. Readers are advised to consult official sources for the most current information.
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