PLI scheme for 11 pharma products rolled out

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The Centre’s Department of Pharmaceuticals is inviting applications from drugmakers for a production linked incentive (PLI) scheme to encourage setting up new manufacturing capacities for as many as 11 eligible products.

Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin and Diclofenac Sodium figure in the list. These are either unsubscribed or partially subscribed eligible products, the Department said in a notification earlier this month. June 14 has been set as the last date for the manufacturers to submit the applications.

Conditions such as allocation according to available capacities, incentive ceiling in respect of products, and limit of incentive up to the production tenure, which will be up to FY28 for chemical synthesis products and up to FY29 for fermentation-based products, have to be complied with. Companies that were granted approval earlier, but subsequently withdrew or whose approval was cancelled are not eligible to apply, it said.

The Pharmaceuticals Export Promotion Council of India has urged its members to take advantage of the decision.

The scheme presents a significant opportunity to enhance their manufacturing capabilities in critical pharmaceutical components, Pharmexcil Director General Raja Bhanu said.

The Department of Pharmaceuticals’ decision is in continuation of India’s emphasis on encouraging domestic manufacturing of critical key starting materials, drug intermediates and active pharmaceutical ingredients. Four years ago the government had rolled out PLI schemes for 14 key sectors, which included bulk drugs, medical devices and pharma, with an eye on boosting production, generating jobs and boosting exports by incentivising domestic manufacturing.

The scheme for KSMs, DIs and APIs, whose guidelines were issued in July 2020 and revised in October the same year, cover a total of 41 products and has a financial outlay of ₹6,940 crore, as per official documents.

In March 2025, the government had announced that 764 applications have been approved under the schemes for the 14 key sectors and investment of around ₹1.61 lakh crore ($18.72 billion) reported till November 2024. Incentive of around ₹14,020 crore have been disbursed under the PLI schemes for 10 sectors, including large-scale electronics manufacturing (LSEM), IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing, white goods, automobiles and auto components and drones and drone components.