THEBUSINESSBYTES BUREAU

NEW DELHI, SEPTEMBER 25, 2026

India’s Production Linked Incentive (PLI) schemes are reshaping the country’s pharmaceutical and medical technology manufacturing landscape, driving investments, boosting domestic production and reducing dependence on imports for critical drugs, active pharmaceutical ingredients (APIs) and high-end medical devices.

Aligned with the government’s Make in India and Atmanirbhar Bharat initiatives, three major PLI schemes implemented by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, are strengthening the manufacturing ecosystem — from critical pharmaceutical raw materials and APIs to complex medicines and advanced medical technologies.

The schemes covering bulk drugs, pharmaceuticals and medical devices have attracted substantial investments, expanded production capacity, generated employment and encouraged technology adoption, helping India build a more resilient and globally competitive healthcare manufacturing base.

Approved in 2020 with a financial outlay of ₹6,940 crore, the PLI Scheme for Bulk Drugs was designed to promote domestic manufacturing of 41 critical products and reduce India's import dependence on essential pharmaceutical building blocks.

Under the scheme, 48 projects have been approved, with actual investment reaching ₹5,210.74 crore as of June 2026, surpassing the committed investment of ₹4,330 crore.

As many as 39 projects covering 28 APIs and key starting materials (KSMs) have already been commissioned.

The scheme has enabled domestic production of important fermentation-based products, including Penicillin-G, Clavulanic Acid and Rifampicin, which were earlier substantially dependent on imports.

Beneficiaries recorded cumulative sales of ₹3,792.49 crore, including exports worth ₹560.16 crore, while generating employment for around 5,127 people as of June 2026.

Projects established in manufacturing hubs such as Visakhapatnam in Andhra Pradesh have further strengthened India's domestic supply chain for critical pharmaceutical inputs. Companies including Lyfius Pharma, Kinvan Private Limited, Andhra Organics Limited, Meghmani LLP and Centrient Pharmaceuticals India have contributed to the expansion of domestic capacity for products such as Penicillin-G, Clavulanic Acid, Sulfadiazine, Atorvastatin and Para Amino Phenol.

The PLI Scheme for Pharmaceuticals, approved in 2021 with a financial outlay of ₹15,000 crore, is aimed at moving Indian pharmaceutical manufacturing towards higher-value products while expanding production and investment.

The scheme covers a wide range of products, including biopharmaceuticals, complex generics, patented and off-patent medicines, orphan drugs, auto-immune therapies and other high-value pharmaceutical products, along with specified APIs, KSMs and drug intermediates.

A total of 55 applicants, including 20 MSMEs, have been selected under the programme.

The scale of investment has significantly exceeded the original target. As of June 2026, beneficiaries had made ₹46,744 crore in actual investments, compared with the targeted investment of ₹17,275 crore.

The programme has also emerged as a significant employment generator, with 1,21,294 jobs created as of June 2026.

More importantly for India's export ambitions, beneficiary companies recorded cumulative sales of ₹4,02,869 crore, including exports worth ₹2,57,370 crore, from the beginning of the performance period in FY 2022-23 through June 2026.

Leading pharmaceutical companies such as Sun Pharmaceutical Industries, Aurobindo Pharma, Dr. Reddy’s Laboratories, Lupin, Cipla, Intas Pharmaceuticals and Torrent Pharmaceuticals have expanded manufacturing capabilities in areas including complex generics, biosimilars, autoimmune medicines and other high-value products.

The third pillar of the programme—the PLI Scheme for Promoting Domestic Manufacturing of Medical Devices—was approved in 2020 with a financial outlay of ₹3,420 crore.

The scheme provides a 5% incentive on incremental sales of eligible medical devices manufactured in India for five years. It focuses on four major segments: cancer care and radiotherapy equipment; radiology and imaging devices; anaesthesia, cardio-respiratory and renal care equipment; and implants, including implantable electronic devices.

The initiative has helped India develop domestic manufacturing capabilities in several high-end medical technologies that were previously dominated by imports.

Production of 57 unique medical devices has commenced under the scheme, covering products such as MRI machines, CT scanners, cath labs, linear accelerators, C-arms, mammography systems, ultrasound equipment, anaesthesia machines and heart valves.

The scheme has also attracted global medical technology companies and facilitated technology transfer and advanced manufacturing capabilities.

Companies including GE Healthcare, Siemens, Philips, Varex, Nipro and Omron have established or expanded manufacturing operations in India, while participating companies have entered into technology-transfer arrangements with international partners.

Domestic manufacturers have simultaneously expanded their capabilities in the implant segment, creating opportunities for greater domestic production as well as exports.

Taken together, the three PLI programmes represent a broad-based strategy to strengthen India's healthcare manufacturing value chain—from critical raw materials and APIs to complex medicines and sophisticated medical devices.

The emphasis on linking incentives to actual production and sales is helping convert policy support into tangible manufacturing capacity, while encouraging companies to invest in technology, scale up operations and develop globally competitive products.

With investments surpassing targets in key segments, rising pharmaceutical exports, new API production facilities and the emergence of domestic capabilities in advanced medical equipment, the PLI framework is contributing to a more resilient healthcare supply chain.

The government’s approach is thus positioning India not merely as a major supplier of medicines, but increasingly as a diversified manufacturing hub spanning pharmaceutical ingredients, high-value drugs and advanced medical technology.