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Pharma PLI scheme enables domestic production of 1,931 products, including 191 bulk drugs for the first time
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Shardul Nautiyal, Mumbai
October 19 , 2026
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The production linked incentive (PLI) scheme for pharmaceuticals has enabled domestic manufacturing of 1,931 pharmaceutical products, including 191 bulk drugs manufactured in India for the first time.
The government, through the PLI scheme, seeks to strengthen domestic production capacity, reduce dependence on imports and improve the security of the country's pharmaceutical supply chain. The pharmaceutical sector has recorded cumulative sales of more than Rs. 3.64 lakh crore under the scheme, according to officials.
Around 41 products have been approved under the bulk drugs PLI scheme. Of these, production has commenced for 18 active pharmaceutical ingredients (APIs), covering several critical ingredients used in the pharmaceutical industry.
The APIs that have entered production include Penicillin G, clavulanic acid, dexamethasone, prednisolone, para amino phenol, 1,1 cyclohexane diacetic acid (CDA), dicyandiamide (DCDA), atorvastatin, levofloxacin, sulfadiazine, ofloxacin, norfloxacin, artesunate, telmisartan, lopinavir, carbamazepine, oxcarbazepine and diclofenac sodium.
The commencement of production of these ingredients marks progress towards diversifying domestic sources of pharmaceutical raw materials and reducing exposure to disruptions in international supply chains. Several of the products are important for manufacturing medicines used in different therapeutic areas.
The PLI scheme has supported the development of domestic manufacturing capabilities across pharmaceutical products and critical raw materials, including APIs, key starting materials (KSMs) and drug intermediates (DIs). These inputs are essential for manufacturing finished medicines, and expanding their production within the country is intended to reduce reliance on overseas suppliers for critical pharmaceutical ingredients.
In the bulk drugs segment, manufacturing capacity of approximately 55,000 metric tonnes has been established across 26 critical APIs. This is expected to support domestic supplies of important pharmaceutical ingredients and reduce import dependence for products such as paracetamol, levofloxacin and norfloxacin.
Under the separate PLI scheme for promotion of domestic manufacturing of critical KSMs, DIs and APIs, also known as the PLI scheme for bulk drugs, around 48 projects have been approved. The scheme has an approved financial outlay of Rs. 6,940 crore to encourage investment in domestic manufacturing of critical pharmaceutical raw materials.
Till date, Rs. 87.70 crore had been disbursed as incentives to approved applicants under the bulk drugs scheme. Production capacity had been created for 28 APIs, KSMs and DIs, although 10 of these had not yet achieved commercial production, indicating that the transition from establishing manufacturing facilities to operational production remains an important aspect of implementation.
The investment figures show that projects have attracted capital beyond their initial commitments. Cumulative investment under the bulk drugs scheme stood at Rs. 5,070.45 crore, compared with the committed investment of Rs. 4,329.95 crore. The investment is intended to establish domestic manufacturing facilities for pharmaceutical ingredients that have traditionally depended on imports.
The broader pharmaceutical PLI scheme links government incentives to eligible manufacturing and sales performance, with the objective of encouraging companies to expand production in India. The bulk drugs component specifically addresses the need to develop manufacturing capabilities for critical ingredients and intermediates, while supporting investment in facilities and technology.
According to officials, the cumulative sales of more than Rs. 3.64 lakh crore and domestic manufacturing of 1,931 pharmaceutical products reflect the scale of production supported under the pharmaceutical PLI programme. However, the extent to which import dependence declines will also depend on the commercialisation of approved projects, sustained production and the ability of domestic manufacturers to meet the industry's requirements for quality, cost and supply reliability.
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