Stories
Bulk Drug PLI Exceeds Investment Target, Boosts Domestic Pharma Manufacturing
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CNBC TV18•25-09-2026, 16:52
Bulk Drug PLI Exceeds Investment Target, Boosts Domestic Pharma Manufacturing
- •Investment under the bulk drug Production-Linked Incentive (PLI) scheme reached –5,211 crore by June, surpassing the government's target of –4,330 crore.
- •The scheme, launched in 2020 with a –6,940 crore outlay, aims to boost domestic manufacturing of 41 critical pharmaceutical products and reduce import dependence.
- •By June, 39 out of 48 approved projects had commenced production, generating 5,127 jobs and –3,793 crore in sales, including –560 crore in exports.
- •The bulk drug PLI has enabled domestic production of critical fermentation-based products like Penicillin-G, Clavulanic Acid, and Rifampicin, previously heavily imported.
- •The broader pharmaceutical PLI scheme also attracted –46,744 crore in investment against a –17,275 crore target, creating over 1.2 lakh jobs and –4.03 lakh crore in cumulative sales.
Key Questions Answered
Investment under the production-linked incentive scheme for bulk drugs reached ₹5,211 crore by June, surpassing the government's target of ₹4,330 crore.
The government launched the bulk drug PLI scheme in 2020 with a financial outlay of ₹6,940 crore to boost domestic manufacturing of 41 critical pharmaceutical products.
Implementation of projects faced constraints such as time consumed for land acquisition, environmental clearance, high utility costs, and long gestation periods for fermentation-based bulk drugs, which delayed commercial production and fund disbursements.
