Feb. 25, 2021

The Union Cabinet has approved Production Linked Incentive (PLI) Scheme for Pharmaceuticals over a period of Financial Year 2020-21 to 2028-29.


  • Total incremental sales of Rs.2,94,000 crore and total incremental exports of Rs.1,96,000 crore are estimated during six years from 2022-23 to 2027-28.

  • The Scheme is also expected to bring in investment of Rs.15,000 crore in the pharmaceutical sector.

  • The scheme will be part of the umbrella scheme for the Development of Pharmaceutical Industry.

  • The objective of the scheme is to enhance India's manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high value goods in the pharmaceutical sector.

  • Target Groups: The manufacturers of pharmaceutical goods registered in India will be grouped based on their Global Manufacturing Revenue (GMR) to ensure wider applicability of the scheme across the pharmaceutical industry and at the same time meet the objectives of the scheme.

  • Quantum of Incentive: The total quantum of incentive (inclusive of administrative expenditure) under the scheme is about Rs 15,000 crore.

Category of Goods:

The scheme shall cover pharmaceutical goods under three  categories as mentioned below:

  • Category 1: Biopharmaceuticals; Complex generic drugs; Patented drugs or drugs nearing patent expiry; Cell based or gene therapy drugs; Orphan drugs; Special empty capsules like HPMC, Pullulan, enteric etc.; Complex excipients; Phyto-pharmaceuticals: Other drugs as approved.

  • Category 2: Active Pharmaceutical Ingredients / Key Starting Materials / Drug Intermediates.

  • Category 3: Drugs not covered under Category 1 and Category 2.

Source : The Hindu