The Government of India
is taking multiple steps to boost domestic Active Pharmaceutical Ingredient
(API) production, reduce import dependence and enhance security of
pharmaceutical supply chains. While the Production Linked Incentive (PLI)
schemes do not provide for dedicated API parks, significant infrastructure
support is being created through the Scheme
for Promotion of Bulk Drug Parks.
·
The
Scheme for Promotion of Bulk Drug Parks has a budgetary outlay of ₹3,000 crore.
·
Three
bulk drug parks have
been approved and are under development in:
o Andhra Pradesh
o Gujarat
o Himachal Pradesh
·
The total project cost exceeds
₹6,306.68 crore, with ₹1,000 crore Central assistance per park
for common infrastructure such as:
o Power and water supply
o Effluent treatment systems
o Steam and utilities
o Solid waste management facilities
o Warehousing
·
States
have extended additional fiscal incentives like:
o Capital investment subsidies
o Interest subsidies
o SGST reimbursement
o Exemption of stamp duty and registration
charges
·
Priority
allotment is being accorded to units manufacturing products covered under the
PLI Scheme for Bulk Drugs.
Two PLI schemes
implemented by the Department of Pharmaceuticals are supporting API and
high-value pharmaceutical manufacturing through fiscal incentives and
capacity-building.
·
Budgetary
outlay:
₹6,940 crore
·
Objective:
Reduce dependence on imported critical APIs and ensure resilient supply chains
for essential drugs.
·
Progress
as of September 2025:
o ₹4,763.34 crore invested, exceeding the committed investment of
₹4,329.95 crore.
o Production capacity established for 26
critical APIs/KSMs/DIs
earlier largely imported.
o Cumulative sales: ₹2,315.44 crore
o Exports: ₹508.12 crore
o Import substitution achieved: ₹1,807.32 crore
·
Scheme
validity: Up to FY 2029–30
·
Budgetary
outlay:
₹15,000 crore
·
Objective:
Boost domestic production of high-value pharmaceuticals such as
biopharmaceuticals, complex generics, patented drugs, biologics and critical
APIs outside the Bulk Drug PLI list.
·
Progress
as of September 2025:
o Committed investment: ₹17,275 crore
o Actual investment achieved: ₹40,890 crore (significantly higher
than commitment)
o Products manufactured: 726 APIs/KSMs/DIs, including 191 produced domestically for the first
time.
o Cumulative domestic sales: ₹26,123 crore contributing
significantly to import substitution.
·
Scheme
validity: Up to FY 2028–29
The coordinated
approach of infrastructure support through bulk drug parks along with financial
incentives under PLI schemes is accelerating domestic API production, fostering
self-reliance, reducing vulnerability to global supply disruptions and positioning
India as a manufacturing hub for high-value pharmaceuticals.
There
is no provision for active pharmaceutical ingredient (API) parks under the Production
Linked Incentive (PLI) schemes implemented by the Department of Pharmaceuticals.
However, the Department of Pharmaceuticals is implementing another scheme, namely
the scheme for Promotion of Bulk Drug Parks, with a budgetary outlay of ₹3,000
crore, under which three bulk drug parks have been approved and are at various stages
of development in the States of Andhra Pradesh, Gujarat and Himachal Pradesh, through
their respective State implementing agencies. The total project cost of these parks
is over ₹6,306.68 crore, with Central assistance to the tune of ₹1,000
crore each for creation of common infrastructure facilities. These parks envisage
land and utilities such as power, water, effluent treatment plant, steam, solid
waste management and warehouse facilities at a subsidised rate to bulk drug or API
manufacturers for units set up in the park. The State implementing agencies of the
States concerned have also offered fiscal incentives in the form of capital subsidy
on fixed capital investment, interest subsidy, State Goods and Services Tax reimbursement,
exemption of stamp duty and registration charges, etc. Further, the scheme provides
for applicants for allotment of land in the parks to set up units for manufacturing
products prioritised in the PLI Scheme for Bulk Drugs to have priority in land allotment.
The
details of the PLI schemes being implemented by the Department, including in respect
of the investment attracted, number of drugs indigenously produced and reduction
of import dependence and the timeframe for each scheme, are as follows: (i) Production Linked Incentive (PLI) Scheme for promotion of
domestic manufacturing of critical Key Starting Materials (KSMs) / Drug Intermediates
(DIs) and Active Pharmaceutical Ingredients (APIs) in India (also known as PLI scheme
for Bulk Drugs): The scheme is aimed at avoiding disruption in supply of critical
APIs used to make critical drugs for which there are no alternatives by reducing
supply disruption risk due to excessive dependence on single source. The scheme
has a budgetary outlay of ₹6,940 crore. Till September 2025, investment of
₹4,763.34 crore has already been made in three and a half years of scheme
production period, against an investment commitment of ₹4,329.95 crore over
the period of six years in greenfield projects. Further, production capacities have
been created for 26 KSMs/DIs/APIs, which were earlier primarily imported. The scheme
has resulted in cumulative sales of ₹2,315.44 crore reported till September
2025, including exports of ₹508.12 crore, thereby avoiding imports worth ₹1,807.32
crore. The tenure of the scheme is till the financial year 2029-30. (ii) PLI Scheme
for Pharmaceuticals: The scheme is aimed at enhancing India’s manufacturing capabilities
by increasing investment and production in the pharmaceuticals sector and contributing
to product diversification to high-value goods in the pharmaceutical sector and
incentivises production of high-value medicines such as biopharmaceuticals, complex
generic drugs, patented drugs or drugs nearing patent expiry, auto-immune drugs,
anti-cancer drugs, etc. as well as production of APIs/DIs/KSMs other than those
notified under the PLI Scheme for Bulk Drugs. It has a budgetary outlay of ₹15,000
crore. As of September 2025, the committed investment of ₹17,275 crore targeted
over the six-year period of the scheme stands substantially exceeded with cumulative
investment of ₹40,890 crore made in three and a half years of scheme production
period in both brownfield and greenfield projects. Further, 726 APIs/KSMs/DIs are
being manufactured under the scheme, including 191 which have been manufactured
for the first time under the scheme. Cumulative domestic sales of APIs/KSMs/DIs
produced under the scheme till September 2025 is worth ₹26,123 crore and thereby
contributing to import avoidance. The tenure of the scheme is till the financial
year 2028-29.
This
information was given by Union Minister of State in the Ministry of Chemicals and
Fertilizers, Smt. Anupriya Patel, in a written reply in Rajya Sabha on 2
December, 2025.