PLI Schemes Strengthen India's Pharma and Medical Device Manufacturing Sector

The Government of India has taken comprehensive steps to empower the pharmaceutical, Active Pharmaceutical Ingredients (API), and medical device manufacturing sectors through the Production Linked Incentive (PLI) scheme. The primary objectives of these schemes are to increase manufacturing capacity, ensure the supply of raw materials for critical medicines, and encourage investment in the MedTech industry. This initiative is operated in alignment with the vision of 'Make in India' and 'Atmanirbhar Bharat'.

Under the PLI scheme for bulk drugs, the government approved a financial outlay of 6,940 crore rupees in 2020. The goal of this scheme is to increase the domestic production of 41 critical products and reduce reliance on imports. By June 2026, 48 projects have been approved under this scheme, with an investment of 5,210.74 crore rupees. This has enabled the domestic production of critical products such as Penicillin-G, Clavulanic Acid, and Rifampicin. By June 2026, beneficiaries of this scheme recorded sales of 3,792.49 crore rupees, including exports worth 560.16 crore rupees, and created 5,127 employment opportunities.

Another PLI scheme was launched in 2021 for high-value pharmaceutical manufacturing with an outlay of 15,000 crore rupees. This scheme focuses on the production of biopharmaceuticals, complex generics, and medicines for rare diseases. By June 2026, this scheme has attracted an actual investment of 46,744 crore rupees, which is significantly higher than the target of 17,275 crore rupees. This scheme has resulted in the creation of 1,21,294 jobs, and from the start of the performance period until June 2026, cumulative sales of 4,02,869 crore rupees were recorded, including exports totaling 2,57,370 crore rupees.

A PLI scheme with an outlay of 3,420 crore rupees was launched in 2020 for the domestic manufacturing of medical devices. This scheme provides a 5 percent incentive on the incremental sales of eligible medical devices. Under this, the production of 57 specific medical devices, including MRI machines, CT scanners, cath labs, and heart valves, has commenced. This initiative has attracted global manufacturers such as GE Healthcare, Siemens, and Philips to establish operations in India.

These three PLI schemes have strengthened India's healthcare manufacturing infrastructure, from raw materials to advanced medical technology, causing the country to emerge as a reliable global manufacturing hub.