India’s pharmaceutical industry is experiencing a significant boost under the Modi government’s Production Linked Incentive (PLI) scheme.

High value drugs such as biopharmaceuticals, complex generics, and treatments for cancer, autoimmune disorders, and cardiovascular diseases are now being actively manufactured.

According to a report by the parliamentary standing committee on chemicals and fertilisers, the scheme has surpassed expectations, with actual investments reaching Rs 33,344.66 crore, almost double the committed amount of Rs 17,275 crore, News18 reported. The cumulative sales under the scheme have totaled ?2.26 crore, including export sales worth Rs 1.44 crore.

The Department of Pharmaceuticals shared its latest review report with the committee, emphasizing the scheme’s role in bolstering India’s manufacturing capabilities.

Leading firms benefit

The PLI scheme is part of India’s broader “Atmanirbhar Bharat” initiative, aiming to create global champions in the pharmaceutical sector by encouraging the use of cutting-edge technology and integration into global value chains.

The scheme has attracted significant interest since its inception in 2021, with 278 applications received, of which 55 applicants were selected. Aurobindo Pharma, Cipla, Dr. Reddy’s Laboratories, Glenmark, and Sun Pharma are among the top beneficiaries, receiving incentives ranging from Rs 150 crore to Rs 330 crore.

So far, Rs 3,220.52 crore has been disbursed to approved applicants for the financial years 2022-23 and 2023-24. An additional Rs 1,066 crore in incentives is expected to be disbursed by the end of FY 2024-25, pending examination by the Small Industries Development Bank of India (SIDBI), the project management agency for the scheme.

Strengthening domestic manufacturing

The PLI scheme aims to reduce India’s reliance on imports for critical drugs and boost exports of high-value pharmaceuticals. By focusing on high-value goods and innovation, the scheme seeks to position India as a leading player in the global pharmaceutical industry.

Industry experts and government officials have lauded the initiative as transformative, positioning India as a global pharmaceutical powerhouse and attracting further investments into the sector.

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Modi govt’s PLI schemes helping India make high-value drug as investors see profit