The Production-Linked Incentive (PLI) schemes have succeeded in strengthening India’s pharmaceutical, bulk drugs and medical devices manufacturing ecosystem, which has helped to reduce import dependence and encouraged technology adoption to build globally competitive capabilities in the pharma and medtech sector, according to a factsheet issued by the government on Friday.

The government approved the 'PLI Scheme for Bulk Drugs' in 2020, with a total financial outlay of Rs 6,940 crore. The scheme was launched to strengthen domestic manufacturing of 41 identified critical products and reduce dependence on imports, particularly for APIs and other essential pharmaceutical building blocks.

An investment of Rs 5,210.74 crore has been made under the scheme (as on June 2026), exceeding the committed investment of Rs 4,330 crore. As many as 39 projects for manufacturing 28 Active Pharmaceutical Ingredients (APIs) have been commissioned.

The scheme has also enabled domestic production of critical fermentation-based products such as Penicillin-G, Clavulanic Acid and Rifampicin, which were earlier largely dependent on imports, the factsheet said.

The PLI Scheme for Pharmaceuticals was approved in 2021 with a total financial outlay of Rs 15,000 crore. The scheme seeks to enhance India's manufacturing capabilities, increase investment and production, and encourage a shift towards high-value pharmaceutical products.

The scheme supports manufacturing across categories including biopharmaceuticals, complex generics, patented and off-patent drugs, orphan drugs, auto-immune medicines and other high-value pharmaceutical products, along with specified APIs and key source material not covered under the Bulk Drugs PLI Scheme.

A total of 55 applicants, including 20 MSMEs, have been selected under the scheme. As of June 2026, the scheme has attracted Rs 46,744 crore in actual investment, substantially exceeding the targeted investment of Rs 17,275 crore.

Companies such as Sun Pharmaceutical Industries Limited, Aurobindo Pharma Limited, Dr. Reddy’s Laboratories Limited, Lupin Limited, Cipla Limited, Intas Pharmaceuticals Limited, Torrent Pharmaceuticals Limited have expanded their capacities to manufacture complex generics, biosimilars, auto-immune medicines and other high value pharmaceuticals under the scheme, the factsheet explained.

The PLI Scheme for Promoting Domestic Manufacturing of Medical Devices was approved in 2020 with a total financial outlay of Rs 3,420 crore. The scheme was introduced to boost domestic manufacturing and attract large investments in the medical devices sector.

The scheme provides a 5 per cent incentive on incremental sales of eligible medical devices manufactured in India for a period of five years.

The scheme has facilitated the establishment of domestic manufacturing capabilities for a range of high-end medical devices that were earlier predominantly imported. Production of 57 unique medical devices has commenced under the scheme, including MRI machines, CT scanners, Cath Labs, Linear Accelerators, C-Arms, mammography machines, ultrasound systems, anesthesia machines and heart valves.

The initiative has also attracted leading global manufacturers and encouraged technology transfer and advanced manufacturing capabilities in India. Companies such as GE Healthcare, Siemens, Philips, Varex, Nipro and Omron have established or expanded manufacturing operations in the country, while several participating companies have entered into technology-transfer arrangements with global partners, according to the factsheet.

The three PLI schemes reflect a comprehensive approach for strengthening India's pharmaceutical and medical devices manufacturing ecosystem from critical raw materials and APIs to high-value medicines and advanced medical technologies, the factsheet added.