New Delhi, December 2, 2025: India’s Production Linked Incentive (PLI) schemes for pharmaceuticals and medical devices have significantly strengthened domestic manufacturing, reduced import dependence and expanded investment across the sector, according to the latest data released by the Press Information Bureau (PIB).
Major Progress under PLI for Bulk Drugs
The PLI Scheme for promoting domestic production of Key Starting Materials (KSMs), Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) — crucial to eliminating the country’s heavy reliance on imports — has demonstrated substantial impact.
- Budget outlay: ₹6,940 crore
- Investment till September 2025: ₹4,763.34 crore (exceeding the committed ₹4,329.95 crore)
- Production capacity created: 26 KSMs/DIs/APIs which were earlier mostly imported
- Cumulative sales: ₹2,315.44 crore, including exports worth ₹508.12 crore
- Import savings: ₹1,807.32 crore
The scheme has helped safeguard India against supply chain disruptions by securing critical drug inputs from domestic manufacturing.
PLI Scheme for Pharmaceuticals Sees Surge in High-Value Production
The PLI Scheme for Pharmaceuticals, designed to increase high-value drug production in India, has far surpassed projections.
- Budget outlay: ₹15,000 crore
- Cumulative investment till September 2025: ₹40,890 crore — more than double the committed ₹17,275 crore
- Number of APIs/KSMs/DIs manufactured under the scheme: 726, including 191 being produced for the first time in India
- Domestic sales generated: ₹26,123 crore
The scheme covers biopharmaceuticals, complex generics, patented drugs nearing expiry, anti-cancer and auto-immune medicines, among other segments. It has emerged as a major contributor to import substitution and global export competitiveness.
PLI for Medical Devices Reduces Dependence on Foreign Imports
Under the PLI Scheme for Promoting Domestic Manufacturing of Medical Devices:
- Budget outlay: ₹3,420 crore
- Performance-linked incentive period: FY 2022-23 to FY 2026-27
- Greenfield projects commissioned: 22
- Products already in production: 55, including high-end devices such as linear accelerators, MRI and CT scan machines, mammography units, C-arm X-ray machines, MRI coils and ultrasound systems
- Cumulative eligible sales: ₹12,344.37 crore, including exports worth ₹5,869.36 crore
This marks a major step in reducing the long-standing reliance on imported medical equipment.
NPPA Continues Drug Price Regulation to Ensure Affordability
To ensure affordability of essential medicines, the National Pharmaceutical Pricing Authority (NPPA) has:
- Fixed ceiling prices of 935 scheduled formulations under the Drugs (Prices Control) Order, 2013
- Fixed retail prices of over 3,500 new drug formulations
- Mandated that manufacturers cannot increase prices of non-scheduled drugs by more than 10% in a year
The measures are aimed at protecting consumers while fostering a competitive and innovation-driven pharmaceutical ecosystem.