India Approves 48 Projects to Safeguard Supply of Critical Active Pharmaceutical Ingredients

New Delhi, July 22

In a decisive move to strengthen the pharmaceutical sector and reduce India’s reliance on imports, the government has approved 48 projects under its Production Linked Incentive (PLI) scheme, targeted at promoting domestic manufacturing of critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs).

Key Developments

• 48 Projects Approved: The projects fall under the PLI scheme, designed to boost domestic capability in producing vital APIs and reduce the risk of disruption in essential drug supplies.

• Investment Surpasses Commitment: As of December 2024, total investments in these projects have reached ₹4,254 crore, surpassing the initial commitment of ₹3,938.5 crore over six years.

• Economic Impact:

  • Cumulative sales from the scheme have reached ₹1,556 crore.

  • Exports account for ₹412 crore, with import substitution savings of ₹1,144 crore.

  • The projects have created significant domestic manufacturing capacity for 25 critical KSMs, DIs, and APIs, previously largely imported.

• Import Dependence Reduced: The PLI scheme primarily targets APIs for which India lacks alternatives and is highly import-dependent, historically relying significantly on single-source countries.

• Awareness and Participation: The government enhanced participation in the scheme through:

  • Webinars and stakeholder consultations.

  • Press releases, FAQs, and scheme guidelines.

  • Active social media and dedicated helpdesk support.

Official Statements

Minister of State for Chemicals and Fertilisers, Anupriya Patel, highlighted in a Rajya Sabha reply that these measures are crucial for the sustainability of India’s pharmaceutical industry, especially in ensuring the continuous availability of life-saving drugs.

The Bigger Picture

The approval is part of broader efforts to position India as a global manufacturing hub for pharmaceuticals, particularly after the COVID-19 pandemic highlighted vulnerabilities in global supply chains. By investing in local capacity, the country aims to prevent future supply shocks and secure access to essential medicines.

Disclaimer

This article is based on official government statements and recent media reports as of July 22, 2025. For full details or further updates, readers should consult official sources or the websites of the Ministry of Chemicals and Fertilisers and associated government bodies.