The overall sales of premium pharmaceutical products such as biopharmaceuticals, intricate generic drugs, and patented medications, among others, produced under the production linked incentive (PLI) framework in the pharmaceuticals sector totaled approximately Rs. 11,853 crore for the first half of the ongoing fiscal year, based on official statistics. This figure represents almost 51% of the total sales recorded the prior year.
According to the Ministry of Chemicals and Fertilisers, there are 408 approved products eligible for production under the scheme within Product Category I, which consists of high-value pharmaceutical goods like bio-pharmaceuticals, patented drugs or drugs approaching patent expiration during the scheme’s tenure, complex generics, complex excipients, and orphan drugs.
From April to September 2024, marking the initial six months of fiscal year 2024-25, sales of Category I PLI scheme products reached Rs. 11,853.11 crore. The fiscal year 2023-24 observed total sales of Rs. 23,228.40 crore, marking nearly a 30% increase from Rs. 17,931.18 crore in the preceding fiscal year.
Under this category, the PLI scheme has sanctioned support for 68 bio-pharmaceutical products, 157 products that are either patented or nearing patent expiry during the scheme’s span, 158 complex generic products, 17 complex excipients, and eight orphan drugs, as per the Ministry’s declaration.
The Department of Pharmaceuticals (DoP) manages the PLI scheme for pharmaceuticals with a financial outlay of Rs. 15,000 crore and an operational term extending to FY 2027-28. The scheme offers financial incentives to 55 selected manufacturers of designated products across three categories. Out of 278 applications received for the scheme, 55 gained approval.
The scheme grants incentives based on incremental sales to chosen participants over six years: 10% for FY 2022-23 to FY 2025-26, 8% for FY 2026-27, and 6% for FY 2027-28.
As per the DoP, by September 2024, the scheme had attracted actual investments worth Rs. 30,623 crore, with production valued at Rs. 1,83,784 crore since the project launched. It established 374 manufacturing facilities and generated employment for 77,119 individuals up to that month.
Approved by the Union Cabinet on February 24, 2021, the scheme’s operational guidelines were released on June 1, 2021 by the DoP, following comprehensive discussions with industry groups, associated departments, and NITI Aayog.
The scheme’s goal is to bolster India’s manufacturing capacity by boosting investment and production in the sector while advancing product diversification into high-value pharmaceutical products. Another aim is to foster global champions in India, capable of scaling with advanced technologies and penetrating global value chains.
Applications were solicited across three categories to ensure fair competition and broad industry coverage, categorized based on the applicant’s size determined by global manufacturing revenue from pharmaceutical production.