In May 2024, the Production Linked Incentive (PLI) scheme for pharmaceuticals saw a notable investment of Rs. 940 crore, marking a 3.32% increase from April’s Rs. 28,328 crore to Rs. 29,268 crore. According to the Department of Pharmaceuticals (DoP), actual production surged by 12.3% in May to Rs. 1,61,209 crore, compared to Rs. 1,43,553 crore in April.
Employment under the pharmaceuticals PLI also rose by 20%, with 71,763 individuals employed in May, up from 59,768 in the previous month. As of May 2024, there are 261 operational manufacturing locations under this scheme.
Meanwhile, investment in the PLI scheme for bulk drugs showed marginal growth, reaching Rs. 3,737.33 crore in May, up from Rs. 3,715 crore previously. Production of bulk drugs increased by 10.3% to Rs. 1,067.45 crore in May, compared to Rs. 968 crore in April 2024. Employment in this sector grew by 19%, with 3,565 people employed in May compared to 2,994 in April. The total number of commissioned projects under the bulk drugs scheme reached 31.
Launched in 2021, the pharmaceuticals PLI scheme has a total outlay of Rs. 15,000 crore spanning from FY 2020-21 to FY 2028-29. It aims to incentivize 55 selected applicants, including 20 MSMEs, over six years for manufacturing identified products across three categories.
The Department has received 278 applications in four rounds, approving 55 for assistance. In contrast, the bulk drugs PLI scheme, launched in 2020 with an outlay of Rs. 6,940 crore, has approved 48 applications out of 249 received. It focuses on promoting domestic manufacturing of critical bulk drugs through greenfield plants in four target segments.
The government recently inaugurated 27 Greenfield bulk drug park projects, highlighting efforts to produce penicillin G domestically for the first time in 30 years. The Department continues to streamline regulatory processes across government departments to support and facilitate projects under both PLI schemes.