Centre Reopens PLI Scheme for 11 Drug Products to Boost Domestic Manufacturing

The Centre’s Department of Pharmaceuticals has invited applications from drugmakers under the production linked incentive (PLI) scheme to set up new manufacturing capacities for 11 eligible products.

These include Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin and Diclofenac Sodium. The Department noted that these are either unsubscribed or partially subscribed products. Manufacturers must submit their applications by 14 June.

India’s pharma exports crossed $30 billion in FY25, with a 31% surge in March. The PLI scheme aims to further strengthen the sector.

Applicants must meet several conditions. These include allocation based on available capacities, a ceiling on incentives for each product, and a limit on incentive duration. Chemical synthesis products will be eligible until FY28, while fermentation-based products qualify until FY29.

The scheme excludes companies that had earlier received approval but later withdrew or were disqualified.

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) urged its members to take advantage of the new opportunity. Pharmexcil Director General Raja Bhanu said the scheme offers a major boost for enhancing production of critical pharmaceutical components.

This decision is part of the government’s ongoing push to promote domestic production of key starting materials, drug intermediates and active pharmaceutical ingredients (APIs).

In 2020, the government launched PLI schemes across 14 sectors, including bulk drugs, medical devices and pharmaceuticals, to spur production, create jobs and raise exports.

The scheme for KSMs, DIs and APIs covers 41 products and has an outlay of ₹6,940 crore.

As of March 2025, 764 applications had been approved under the PLI schemes. Investment worth ₹1.61 lakh crore ($18.72 billion) had been reported by November 2024. Incentives of ₹14,020 crore have been disbursed across 10 sectors, including pharma, electronics, IT hardware and drones.

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