Promotion of indigenous pharmaceutical manufacturing
Policy

Promotion of indigenous pharmaceutical manufacturing

PLI scheme for Bulk Drugs has a total budgetary outlay of Rs. 6,940 crore

  • By IPP Bureau | December 04, 2025

The following steps are being taken by the Department of Chemicals and Petrochemicals under the Make in India initiative to strengthen domestic pharmaceuticals manufacturing

Under the Scheme for Promotion of Bulk Drug Parks, which has a total budgetary outlay of Rs. 3,000 crore, three parks have been approved and are at various stages of development in the States of Andhra Pradesh, Gujarat and Himachal Pradesh, through their respective State Implementing Agencies. The total project cost of these parks is over Rs. 6,300 crore, with Central assistance to the tune of Rs. 1,000 crore each for creation of common infrastructure facilities.

These parks would offer land and utilities such as power, water, effluent treatment plant, steam, solid waste management, warehouse facilities at a subsidised rate to the bulk drug or active pharmaceuticals ingredient (API) manufacturers.

The State Implementing Agencies of the respective states have offered fiscal incentives in the form of capital subsidy on fixed capital investment, interest subsidy, State Goods and Services Tax reimbursement, exemption of stamp duty and registration charges, etc. Further, the scheme provides for applicants for allotment of land in the parks to set up units for manufacturing product prioritised in the PLI Scheme for Bulk Drugs to have priority in land allotment.

Further, under the Scheme for Promotion of Medical Devices Parks, having a total outlay of Rs.  300 crore, three parks have been approved and are being developed in Greater Noida (Uttar Pradesh), Ujjain (Madhya Pradesh) and Kanchipuram (Tamil Nadu). Rs. 180 crore have been released in two instalments for development of common infrastructure facilities at these three parks. The civil work for common facilities in all three medical device parks is at the final stage of construction. As of September 2025, 194 medical devices manufacturers have been allotted land in the approved Medical Devices Parks in a 298.58-acre area and construction has commenced for 34 units.

The measures taken by the Government to promote domestic manufacturing of APIs, reduce import dependency and the progress made is as under:

PLI scheme for Bulk Drugs: The scheme, which has a total budgetary outlay of Rs. 6,940 crore, aims to avoid disruption in supply of critical APIs used to make critical drugs for which there are no alternatives by reducing supply disruption risk due to excessive dependence on single source. As of September 2025, production capacities have been created for 26 KSMs/DIs/APIs, which were earlier primarily imported. Till September 2025, investment of Rs. 4,763.34 crore has already been made in three and half years of scheme production, against an investment commitment of Rs. 4,329.95 crore over the period of six years. Further, the scheme has resulted in cumulative sales of Rs. 2,315.44 crore reported till September 2025, including exports of ₹508.12 crore, thereby avoiding imports worth Rs. 1,807.32 crore.

PLI Scheme for Pharmaceuticals: The scheme has a total budgetary outlay of Rs. 15,000 crore, with aim to enhance India’s manufacturing capabilities by increasing investment and production in the pharmaceuticals sector and contributing to product diversification to high-value goods in the pharmaceutical sector and incentivises production of high-value medicines such as biopharmaceuticals, complex generic drugs, patented drugs or drugs nearing patent expiry, auto-immune drugs, anti-cancer drugs, etc. as well as production of APIs/DIs/KSMs other than those notified under the PLI Scheme for Bulk Drugs. It has enabled enhanced investment and production in eligible products. As of September 2025, in three and half years of scheme operation, domestic cumulative sales of APIs and drug intermediates worth Rs. 26,123 crore have taken place, which includes sales of 191 new APIs and drug intermediates produced for the first time under the scheme.

This information was given by Union Minister of State in the Ministry of Chemicals and Fertilizers, Anupriya Patel, in a written reply in Rajya Sabha.

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