PLI Schemes reduce API import dependence: Govt tells Parliament
New Delhi: The Production Linked Incentive (PLI) schemes implemented by the Department of Pharmaceuticals have led to avoidance of imports worth Rs 3,591 crore of active pharmaceutical ingredients (APIs) and their key starting materials (KSMs) and drug intermediates (DIs), thereby reduction in import dependency, the Union Minister of State in the Ministry of Chemicals and Fertilizers said.
In a written reply to the Rajya Sabha, Anupriya Patel stated that under the PLI Scheme for promotion of domestic manufacturing of critical KSMs/DIs/APIs in India, commonly known as the PLI Scheme for Bulk Drugs, manufacturing capacity has been created for 26 KSMs/APIs as of September 2025.This resulted in cumulative sales of Rs 2,315 crore from the beginning of the scheme, including exports of Rs 508 crore, thereby avoiding imports worth ₹1,807 crore. The scheme aims to avoid disruption in supply of critical APIs used to make critical drugs for which there are no alternatives by reducing supply disruption risk due to excessive dependence on single source.
Meanwhile, in PLI Scheme for Pharmaceuticals, 191 KSMs/DIs/APIs have been produced for the first time under the scheme resulting in cumulative sales of Rs 8,110 crore from the beginning of the scheme till September 2025, including exports of Rs 6,326 crore, thereby avoiding imports worth Rs 1,784 crore. The scheme aims to enhance India’s manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high-value goods in the pharmaceutical sector. It incentivises production of high-value medicines such as biopharmaceuticals, complex generic drugs, patented drugs or drugs nearing patent expiry, auto-immune drugs, anti-cancer drugs, etc. as well as production of KSMs/DIs/APIs other than those notified under the PLI Scheme for Bulk Drugs, thereby contributing to self-reliance.
Under the PRIP scheme, financial assistance is provided to industry, MSMEs and startups to support research and development (R&D) for development of products and technologies (outputs) or expeditious validation of R&D outputs for market launch and large-scale commercialisation in three priority areas, namely new medicines, complex generics and biosimilars, and novel medical devices. While, assistance is also provided to the seven National Institutes of Pharmaceutical Education and Research for strengthening of research infrastructure through the setting up of Centres of Excellence at these institutes.
The tenure of the scheme under which three bulk drug parks have been approved is till March 2027, as per the Minister.
Details of progress made in respect of implementation of the projects approved for the bulk drug parks in Andhra Pradesh, Gujarat and Himachal Pradesh under the Scheme for Promotion of Bulk Drug Parks:
Andhra Pradesh (status as of August 2025):
- Tender for development of internal roads, power, water, drainage and other utility buildings have been awarded and approximately 30% of the work has been completed on site.
- Fencing posts have been installed along a stretch of 29.3 km, external water pipeline has been procured and laying work is in progress.
Gujarat (status as of October 2025):
- Tenders for all common infrastructure facility (CIF) related works for development of road, drainage, water infrastructure, effluent collection and rack system have been awarded and approximately 75% of work has been completed on site.
- CIF utility tenders for development of common effluent treatment plant, solvent recovery, treatment storage and disposal facilities have been awarded in October 2024 and approximately 16% of work has been completed on site.
- A technical consultant has been appointed, for finalising the technical specifications and tender preparation for the Centre of Excellence.
- The Government of Gujarat has completed construction of an approach road of 4 km length and has initiated installation of a water pipeline to draw surface water from Narmada Canal located approximately 40 km from the park site.
Himachal Pradesh (status as of October 2025):
- Tender for the development of internal roads, drainage, bridges and water infrastructure has been awarded and work is in progress.
- Tender for site demarcation, grading and land levelling has been awarded, and work is in progress in park area covering 900 acres.
Under the two pharmaceuticals PLI schemes, cumulative sales of Rs 3,19,112 crore by approved pharmaceutical applicants have been reported since the beginning of the scheme till September 2025. This includes exports worth Rs 2,04,238.12 crore, reflecting their global competitiveness.
