Business

FDI in India’s Pharma Sector Surges Past ?19,134 Crore in FY 2024-25, Driven by PLI Scheme Momentum

From April to December 2024 alone, the sector attracted ?11,888 crore in FDI. Additionally, 13 brownfield investment proposals amounting to ?7,246.40 crore received approval during the same fiscal year, taking the cumulative FDI to an impressive ?19,134.4 crore.

• By IANS
• New Delhi
• Apr 13, 2025

Business

India’s pharmaceuticals and medical devices sector witnessed a major surge in foreign direct investment (FDI) during the financial year 2024-25, with total inflows crossing ₹19,134 crore, according to the Department of Pharmaceuticals.

From April to December 2024 alone, the sector attracted ₹11,888 crore in FDI. Additionally, 13 brownfield investment proposals amounting to ₹7,246.40 crore received approval during the same fiscal year, taking the cumulative FDI to an impressive ₹19,134.4 crore.

Government officials credited this spike in investor interest to the Production Linked Incentive (PLI) Scheme, which has emerged as a game-changer for the sector. Launched to boost local manufacturing, reduce dependency on imports, and scale up exports, the scheme has already begun delivering measurable results.

According to an official statement released on Sunday, investments under the PLI initiative have exceeded expectations. Against an initial commitment of ₹3,938.57 crore, actual investments had reached ₹4,253.92 crore by December 2024 — well ahead of targets.

Under the PLI Scheme for Bulk Drugs, 48 projects were selected, with 34 already commissioned, covering 25 essential bulk drugs. Among the marquee projects is the Penicillin G facility in Kakinada, Andhra Pradesh, with an investment of ₹1,910 crore. The project is expected to reduce imports worth ₹2,700 crore annually. Another key project is underway in Nalagarh, Himachal Pradesh, where ₹450 crore is being invested in the production of Clavulanic Acid, projected to cut imports by ₹600 crore each year.

The PLI Scheme for Pharmaceuticals, which was approved by the Union Cabinet in February 2021 with a financial outlay of ₹15,000 crore, spans a production period from FY 2022-23 to FY 2027-28. It supports 55 selected companies across three product categories, offering financial incentives for six years. The scheme targets high-value and innovation-driven products such as patented and off-patent drugs, biopharmaceuticals, complex generics, anti-cancer and autoimmune treatments.

Designed to strengthen India's position as a pharmaceutical manufacturing hub, the initiative also aims to reduce import dependence on Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs). By supporting indigenous production and innovation, the scheme enhances both domestic capabilities and global competitiveness.

In parallel, the PLI Scheme for Medical Devices is fostering the development of high-end equipment in radiology, imaging, cancer care, and implants. With a financial outlay of ₹3,420 crore, the scheme spans from FY 2020-21 to FY 2027-28 and offers a 5% incentive on incremental sales of targeted medical devices over five years.

India’s pharmaceutical industry continues to be a global leader in affordable, high-quality generics, supported by a strong base of homegrown brands and cost-efficient production. With policy support and investor confidence at an all-time high, the sector is poised for robust growth in the coming years.