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India’s PLI Scheme Boosts Pharmaceutical Sector with Significant Investments

The pharmaceutical sector has seen a substantial influx of Rs 29,268 crore from the government to expand production capacity and diversify the pharmaceutical base.

• By PharmaNews Live Desk
• New Delhi
• Jul 01, 2024

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India’s Production Linked Incentive (PLI) scheme has significantly bolstered investment in the pharmaceutical sector, aiming to enhance domestic manufacturing and minimize dependency on imports, according to data from the Department of Pharmaceuticals (DoP).

Investment Surge and Production Growth

The pharmaceutical sector has seen a substantial influx of Rs 29,268 crore from the government to expand production capacity and diversify the pharmaceutical base. In May 2024 alone, investments amounted to Rs 29,940 crore, a 3.32% increase from April’s figure of Rs 28,328 crore.

Consequently, production rose by 12.3% to Rs 1,61,209 crore in May, up from Rs 1,43,553 crore in the previous month.

Employment and Manufacturing Expansion

Employment in the pharma industry under the PLI scheme saw a significant rise of 20%, reaching 71,763 jobs in May, up from 59,768 in April. Additionally, 261 manufacturing plants were commissioned by May 2024. The wholesale pharmaceuticals segment also experienced a growth in investments, reaching Rs 3,737.33 crore in May, slightly up from Rs 3,715 crore in April.

Production in this segment increased by 10.3% to Rs 1,067.45 crore, with employment rising by 19% to 3,565 jobs from 2,994 in April. This segment now has 31 completed projects.

Medical Devices Sector Advancements

The medical devices sector attracted Rs 958.72 crore in investments, boosting its production capacity to Rs 5,986.56 crore. The establishment of 17 new production plants has turned the sector into a hub of innovation and technology, creating 5,396 jobs.

Strategic Implications and Future Outlook

Dr. Vivek Desai, Founder and Managing Director of HOSMAC, emphasized the broader impact of the PLI program.

“The success of the PLI program goes beyond financial investments and has strategic implications for the Indian pharmaceutical industry. Reducing dependence on medical technology imports and increasing domestic production is crucial as we approach the Union Budget 2024-25,” he stated.

PLI Scheme Overview

Launched in 2021 with a financial outlay of Rs 15,000 crore, the PLI scheme aims to provide incentives over six years to 55 selected applicants, including 20 micro, small, and medium enterprises (MSMEs).

To date, 278 applications have been received, with 55 approved. In the bulk medicines segment, 48 out of 249 applications have been approved, reflecting the program’s robust engagement with industry stakeholders.