PLI Schemes Strengthen India’s Pharmaceutical, Bulk Drug and Medical Device Manufacturing Ecosystem

India’s PLI schemes are strengthening pharmaceutical and medical device manufacturing by attracting investments, increasing domestic production, reducing import dependence and supporting advanced healthcare technology capabilities.

PLI Schemes Strengthen India’s Pharmaceutical Manufacturing Ecosystem

Production Linked Incentive (PLI) schemes are playing an important role in strengthening India’s pharmaceutical and medical devices manufacturing capabilities. The programmes are designed to encourage domestic production, attract fresh investments, promote technology adoption and reduce dependence on imported products and critical raw materials.

The government has introduced separate PLI programmes covering bulk drugs, pharmaceuticals and medical devices, creating support across multiple stages of the healthcare manufacturing value chain.

Together, these initiatives are helping expand domestic capacity while supporting India's ambitions to become a more competitive global manufacturing hub.

PLI Scheme for Bulk Drugs Strengthens Domestic Production

The PLI Scheme for Bulk Drugs, approved in 2020 with a financial outlay of ₹6,940 crore, focuses on increasing domestic manufacturing of 41 critical products.

The covered products include Active Pharmaceutical Ingredients (APIs), Key Starting Materials (KSMs) and Drug Intermediates (DIs), which are essential components used in pharmaceutical manufacturing.

The scheme aims to address vulnerabilities associated with dependence on imported pharmaceutical raw materials and encourage companies to establish production facilities within India.

48 Projects Approved Under Bulk Drug Scheme

As of June 2026, the government had approved 48 projects under the bulk drug PLI programme. Actual investment had reached approximately ₹5,210.74 crore, exceeding the committed investment target of ₹4,330 crore.

Of the approved projects, 39 projects covering 28 APIs and KSMs had been commissioned by June 2026, indicating progress in establishing domestic manufacturing capacity.

The beneficiaries had recorded cumulative sales of around ₹3,792.49 crore, including exports worth ₹560.16 crore. The projects had also generated employment for approximately 5,127 people.

Boost to Domestic Fermentation-Based Products

The bulk drug programme has also supported the domestic production of important fermentation-based pharmaceutical products. These include Penicillin-G, Clavulanic Acid and Rifampicin, which are important inputs for pharmaceutical manufacturing.

Expanding production of such products domestically can strengthen supply-chain resilience and reduce exposure to disruptions in international markets.

Pharmaceutical PLI Scheme Drives Investment

The PLI Scheme for Pharmaceuticals, approved in 2021, has a financial outlay of ₹15,000 crore.

The programme covers a broad range of high-value pharmaceutical products, including biopharmaceuticals, complex generics, patented and off-patent medicines and orphan drugs.

It also supports manufacturing of auto-immune medicines and other specialised pharmaceutical products.

The focus is on encouraging companies to increase production of higher-value medicines and develop stronger manufacturing capabilities within India.

Investment Surpasses the Target

By June 2026, 55 applicants, including 20 MSMEs, had been selected under the pharmaceutical PLI programme.

The selected companies had recorded actual investments of approximately ₹46,744 crore, significantly higher than the targeted investment of ₹17,275 crore.

This indicates substantial investment in pharmaceutical manufacturing capacity under the scheme.

Strong Sales and Export Performance

The beneficiaries of the pharmaceutical PLI programme had generated cumulative sales of approximately ₹4.03 lakh crore by June 2026. Exports accounted for around ₹2.57 lakh crore, highlighting the role of the scheme in supporting India's pharmaceutical exports.

The programme had also contributed to employment generation, with approximately 1,21,294 jobs created by the participating companies.

The combination of investment, production and exports indicates the expanding scale of India's pharmaceutical manufacturing ecosystem.

Medical Device PLI Supports Advanced Healthcare Manufacturing

The third major initiative is the PLI Scheme for Medical Devices, which was approved in 2020 with an outlay of ₹3,420 crore.

The scheme is intended to encourage domestic manufacturing of advanced medical equipment and reduce dependence on imported devices.

It has supported the production of 57 unique medical devices, covering several categories of diagnostic, therapeutic and hospital equipment.

Production of High-Value Medical Equipment

Products supported under the scheme include MRI machines, CT scanners, Cath Labs, Linear Accelerators and C-Arms.

The programme also covers mammography machines, ultrasound systems, anaesthesia machines and heart valves.

The development of domestic manufacturing capabilities in these areas can help expand India's healthcare technology ecosystem while encouraging investment in advanced production facilities.

Building a More Resilient Healthcare Supply Chain

The three PLI programmes cover different but interconnected parts of India's healthcare manufacturing sector.

The bulk drug scheme focuses on critical raw materials and pharmaceutical inputs, while the pharmaceutical PLI programme supports the manufacturing of high-value medicines. The medical devices initiative, meanwhile, promotes domestic production of advanced healthcare equipment.

Together, these programmes can help create stronger links between raw material suppliers, pharmaceutical manufacturers and medical technology companies.

Reducing Import Dependence

One of the key objectives of the programmes is to strengthen domestic manufacturing and reduce India's reliance on imported products and inputs.

Developing domestic capacity for APIs, KSMs, drug intermediates, specialised medicines and medical devices can improve the resilience of supply chains.

It can also provide Indian companies with greater opportunities to participate in global healthcare markets.

Supporting Technology and Innovation

The PLI programmes are also encouraging manufacturers to adopt advanced technologies and develop higher-value products.

Investment in specialised pharmaceutical manufacturing and sophisticated medical devices can contribute to technological capability building.

The participation of MSMEs in the pharmaceutical programme further expands the potential base of companies contributing to India's healthcare manufacturing sector.

Strengthening India’s Global Manufacturing Position

India already has an established pharmaceutical manufacturing and export base. The PLI programmes are intended to further strengthen that position by supporting domestic capacity and encouraging investment in technologically advanced products.

Higher production and export volumes could help Indian manufacturers expand their presence in international markets while developing a more diversified domestic supply chain.

Conclusion

India's PLI schemes for bulk drugs, pharmaceuticals and medical devices are supporting investment, production, employment and exports across the healthcare manufacturing sector. By strengthening critical raw material production, encouraging high-value pharmaceutical manufacturing and expanding medical device capabilities, the programmes are contributing to a more resilient and globally competitive manufacturing ecosystem.