India gives go-ahead to 48 projects aimed at ensuring continuous availability of essential pharmaceutical components
The Indian government has taken significant steps to encourage participation in the Production Linked Incentive (PLI) scheme for critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs). The aim of the scheme is to avoid disruption in the supply of critical active pharmaceutical ingredients used to make critical drugs, and to reduce excessive dependence on a single source.
The Minister of State for Chemicals and Fertilisers, Anupriya Patel, recently provided information in Rajya Sabha regarding the progress of the PLI scheme. As of December 2024, the scheme has approved 48 projects, resulting in investments of Rs 4,254 crore, which exceeds the initial investment commitment of Rs 3,938.5 crore over six years. Cumulative sales of Rs 1,556 crore have been reported over the period from the beginning of the scheme till December 2024. The scheme has also created domestic manufacturing capacity for 25 identified KSMs/DIs/APIs.
To enhance awareness and encourage participation in the PLI scheme, the government undertook multiple measures at the launch and during various rounds of application invitations. These measures included multiple rounds of communication and invitation for applications, clear articulation of scheme benefits and eligibility, establishment of dedicated application portals, complementary reforms improving ease of doing business and investment climate, and institutional support via specialized cells for fast-tracking investments.
Press releases, detailed guidelines, FAQs, and scheme notifications were issued on official websites. Webinars and stakeholder consultation meetings were conducted, involving industry associations and potential applicants. Social media campaigns were also part of the regular outreach for the PLI scheme. A dedicated helpdesk support and query resolution mechanisms were provided through the scheme portal.
The PLI scheme has been successful in reducing imports, with exports of Rs 412 crore made under the scheme, avoiding imports worth Rs 1,144 crore. By promoting domestic manufacturing capacity, the scheme aims to mitigate supply chain disruptions for critical drug components.
In conclusion, the Indian government's efforts in raising awareness and encouraging participation in the PLI scheme have resulted in significant domestic investments and increased manufacturing capacity under the PLI scheme as of mid-2025. The scheme is a crucial step towards self-reliance in the pharmaceutical sector, ensuring the production of critical pharmaceutical ingredients in India.
Science and health-and-wellness are integral aspects of the pharmaceutical sector, which the Indian government is striving to strengthen through the Production Linked Incentive (PLI) scheme. The scheme aims to boost medical-conditions-related research and development by creating domestic manufacturing capacity for critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs), ultimately leading to self-reliance and reduced dependence on foreign sources.
