PLI Scheme for 11 Pharma Products Open Till June 14

The Department of Pharmaceuticals, under the Government of India, has invited fresh applications from pharmaceutical manufacturers under its Production Linked Incentive (PLI) scheme to encourage the establishment of new manufacturing capacities for 11 critical pharmaceutical products. The initiative aims to bolster India’s self-reliance in the production of key starting materials (KSMs), drug intermediates (DIs), and active pharmaceutical ingredients (APIs).

Among the eligible products in this latest round are widely used antibiotics and painkillers such as Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin, and Diclofenac Sodium. These items are either unsubscribed or only partially subscribed under the earlier rounds of the PLI scheme, the Department noted in a notification issued earlier this month. The deadline for application submissions has been set for June 14.

Interested manufacturers will need to adhere to several stipulated conditions, including capacity-based allocation, product-wise incentive ceilings, and specific incentive timelines. For chemical synthesis-based products, the incentive tenure will run through FY2028, while fermentation-based products will be eligible up to FY2029. Importantly, firms whose earlier approvals were either cancelled or voluntarily withdrawn will not be eligible to reapply under this round.

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has urged its members to capitalize on this renewed opportunity. "This scheme provides a significant platform for Indian manufacturers to strengthen their capabilities in producing essential pharmaceutical ingredients," said Raja Bhanu, Director General of Pharmexcil.

This latest announcement reaffirms the Centre’s strategic focus on reducing dependence on pharmaceutical imports and building resilient supply chains for critical raw materials. The PLI scheme for KSMs, DIs, and APIs, first launched in July 2020 and revised in October of the same year, covers a total of 41 products and has a financial outlay of ₹6,940 crore, according to official documents.

The broader PLI framework, which spans 14 key sectors including pharmaceuticals, bulk drugs, medical devices, and electronics, was launched to drive domestic production, create jobs, and enhance exports. As of November 2024, 764 applications had been approved across these sectors, with a total investment of around ₹1.61 lakh crore ($18.72 billion). The government has disbursed ₹14,020 crore in incentives under the scheme for sectors including large-scale electronics, telecom, IT hardware, white goods, food processing, and drone manufacturing.

With the renewed push under the PLI scheme, India continues its trajectory toward becoming a global hub for high-quality, cost-effective pharmaceutical manufacturing.