Lok Sabha Question No. 4708 (UNSTARRED), answered on 2026-03-20
Subject: Production Linked Incentive Scheme
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Balram Naik Porika

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION NO. 4708 TO BE ANSWERED ON THE 20 TH  MARCH 2026

## Production Linked Incentive Scheme

## 4708. Shri Balram Naik Porika:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) the status of implementation of the Production Linked Incentive (PLI) scheme for bulk drugs and pharmaceuticals, including investment attracted, production capacity added and reduction in import dependence on Active Pharmaceuticals Ingredients Units (APIs);

(b) the funds released versus utilised under the scheme during the last three years;

(c) the number of new manufacturing units commissioned in backward and aspirational districts of the country, district-wise; and

(d)  the  steps  taken  to  ensure  environmental  compliance  and  sustainable  development  while achieving self-reliance in critical chemicals?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS

(SMT. ANUPRIYA PATEL)

(a):  (i)   The Production Linked Incentive (PLI) scheme for Pharmaceuticals was approved in 2021 with  an  objective  to  enhance  India's  manufacturing  capabilities  by  increasing  investment  and production in the pharmaceuticals sector. The scheme intends to incentivize production of high value medicines, complex generics etc. as well as Active Pharmaceutical Ingredients (APIs) /Drug Intermediates (DIs) /Key Starting Materials (KSMs) (other than those covered under PLI Scheme for Bulk Drugs).

The status of implementation of the PLI scheme for Pharmaceuticals is as follows:

- As of December 2025, cumulative investment of ₹41,943 crore was made under the scheme  in  both  brownfield  and  greenfield  projects.  This  substantially  exceeds  the targeted committed investment of ₹17,275 crore over the six -year period of the scheme.
- The cumulative sales figure till December 2025 stands at ₹3,35,036 crores which has been derived from sale of 1988 products being manufactured under the scheme. This figure includes exports to the tune of ₹2,15,248 crores.
- Out of 1988 products, 726 APIs/KSMs/DIs are being manufactured under the scheme, including 191 which have been manufactured for the first time in the country. Sale of these APIs/KSMs/DIs have resulted in cumulative domestic sales worth ₹28,067 crores and this has contributed to import reduction in the sector.
- (ii)  The Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of critical Key  Starting Materials (KSMs)  / Drug  Intermediates (DIs) and Active Pharmaceutical  Ingredients  (APIs)  in  India  (commonly  known  as  'PLI  scheme  for  Bulk Drugs') was  approved  in  2020  and  it  is  aimed  at  avoiding  supply  disruption  risk  due  to excessive dependence on single source.

The status of implementation of this scheme is as follows:

- Till December 2025, investment of ₹4,814 crore has been made against an investment commitment of ₹4,329.95 crore over the period of six years in greenfield projects.
- Total  capacity  amounting  to  91,077  metric  tonnes  per  annum  is  committed  for  33 products against the originally envisaged capacity of 82,270 metric tonnes per annum for 41 products identified under the scheme . Further, manufacturing capacity of 56,800 metric  tonnes  per  annum  has  been  created  for  28  critical  KSMs,  DIs,  and  APIs  till December, 2025. The scheme has resulted in cumulative sales of ₹2,720 crore, including exports of ₹527.96 crore s.
- (b): The details of amount released under the said schemes during the last three years are given below:

(In crore ₹ )

| Scheme Name                    |   FY2022-23 | FY2023-24   | FY2024-25   |
|--------------------------------|-------------|-------------|-------------|
| PLI scheme for Bulk Drugs      |        5.95 | 11.66       | 21.30       |
| PLI Scheme for Pharmaceuticals |      655.15 | 1,552.46    | 2,330.00    |

- (c): Under the PLI Scheme for Bulk Drugs, six new manufacturing units have been commissioned in Vishakapatnam district of Andhra Pradesh, which is an aspirational district.
- (d): Environmental compliances for all industries including chemical industries are addressed through the Environment (Protection) Act, 1986, The Water (Prevention and Control of Pollution) Act 1974 and The Air (Prevention and Control of Pollution) Act, 1981 administered by Ministry of  Environment,  Forest  &  Climate  Change  (MoEF&CC).  All  industries  including  chemical industries are required to take necessary permissions in terms of these regulations.

Bulk  drug  manufacturing  units  are  classified  as  red-category  industries  under  the environmental regulatory framework and are accordingly required to obtain statutory clearances including Environmental Clearance (EC), Consent to Establish (CTE) and Consent to Operate (CTO) from concerned regulatory authorities prior to commencement of operations.

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