PLI scheme opens doors for pharma giants to boost domestic drug production

The Centre has invited pharmaceutical manufacturers to apply for the latest phase of the Production Linked Incentive (PLI) scheme, aimed at strengthening India’s capacity to produce critical medicines.  

 

Under this initiative, drugmakers can set up new manufacturing units for 11 key pharmaceutical products, including essential antibiotics and painkillers such as Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin, and Diclofenac Sodium. These medicines were either unsubscribed or only partially subscribed in earlier phases of the scheme.  

 

Applications are open until June 14, with incentives structured around production capacity and defined ceilings for each product. Chemical synthesis-based medicines will receive incentives until the financial year 2027-28, while fermentation-based products will be supported until 2028-29. However, companies that previously withdrew or had their approvals cancelled are not eligible to reapply.  

 

The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has urged its members to seize this opportunity, emphasizing that the scheme offers a significant boost for domestic drug production. The government’s broader push for self-reliance in pharmaceutical manufacturing includes a financial outlay of Rs 6,940 crore, covering 41 products under the PLI framework.  

 

Sources: The Hindu, The Hans India, Pharmabiz.