India Cuts API Imports, Disburses Rs 1,008 Cr Under PLI Schemes, Parliament Told
New Delhi: India has disbursed over Rs 1,008 crore in incentives to domestic firms to bolster Active Pharmaceutical Ingredient (API) production, significantly reducing reliance on Chinese imports, the Parliament was informed.
This came during a recent Rajya Sabha session where Smt. Ranjeet Ranjan raised a question regarding India’s dependency on Chinese APIs and the measures taken to promote domestic manufacturing. In response, Minister of State for Chemicals and Fertilizers, Anupriya Patel, in a written reply, stated:
“With a view to avoid disruption in supply of critical APIs (used to make critical drugs for which there are no alternatives) by reducing excessive dependence on a single source, Government constituted a committee on drug security in the year 2020…”
She added that 41 products were identified for domestic production under the PLI Scheme for Bulk Drugs, with a total outlay of Rs 6,940 crore. As of March 2025, against an investment commitment of Rs 3,938.5 crore, an investment of Rs 4,570 crore has already been made.
“As a result of the scheme, cumulative sales of Rs 1,817 crore have been reported… including exports of Rs 455 crore, thereby avoiding imports worth Rs 1,362 crore and creation of domestic manufacturing capacity for 25 identified KSMs/DIs/APIs.”
The government also launched the PLI Scheme for Pharmaceuticals in FY2022-23 with a Rs 15,000 crore outlay. As of March 2025, it has generated Rs 22,658 crore in domestic sales, covering over 190 APIs and DIs, “many of which were manufactured domestically for the first time.”
Additionally, the Scheme for Promotion of Bulk Drug Parks is underway, with Rs 3,000 crore allocated to support parks in Andhra Pradesh, Gujarat, and Himachal Pradesh. These parks aim to provide subsidised land and utilities, and encourage high-priority API units aligned with PLI goals.
When asked whether India intends to impose duties or trade restrictions on Chinese APIs, Patel clarified:
“As and when proposals are received from domestic industry for imposition of import duties or trade restrictions… the same are considered in accordance with the aforesaid provisions.”
On the regulatory side, she noted that CDSCO oversees quality standards for imported APIs, issuing import licenses and conducting random inspections to ensure compliance with the Drugs and Cosmetics Act, 1940.
Under the PLI Scheme for Bulk Drugs, financial incentives include:
20% for fermentation-based products until FY2026-27, tapering to 5% by FY2028-29
10% for chemical synthesis-based products until FY2027-28
Under both PLI schemes, a total of Rs 1,008.15 crore has been disbursed as of date.
“These schemes are reshaping India's pharmaceutical manufacturing landscape,” the reply emphasized.
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