Mumbai, Apr 14: India’s pharmaceuticals and medical devices sector has seen a FDI inflow to the tune of Rs 11,888 crore from April to December in the financial year ended on March 31, 2025, apart from which 13 FDI proposals worth Rs 7,246.40 crore for brownfield projects during 2024-25 have been approved, taking the total FDI to Rs 19,134.4 crore, according to figures compiled by the Department of Pharmaceuticals.The government’s Production Linked Incentive (PLI) Scheme, has turned out to be a transformative initiative for boosting domestic manufacturing, attracting investments, reducing reliance on imports and increasing exports, according to an official statement issued on Sunday.
One of the significant achievements under the PLI scheme has been the surpassing of targeted investments. While the initial commitment was Rs 3,938.57 crore, the actual realised investment has already reached Rs 4,253.92 crore (as of December 2024), the statement said.
Under the PLI scheme for Bulk Drugs, a total of 48 projects have been selected under the scheme, of which 34 projects have been commissioned for 25 bulk drugs as of December 2024.
Notable Projects Under the PLI Scheme for Bulk Drugs include the Penicillin G Project (Kakinada, Andhra Pradesh), with a Rs 1,910 crore investment and expected import substitution of Rs 2,700 crore per annum.
Clavulanic Acid Project at Nalagarh in Himachal Pradesh is also being implemented under the scheme with an investment of Rs 450 crore and is expected to result in an import substitution of Rs 600 crore per annum.
The PLI Scheme for Pharmaceuticals was approved by the Union Cabinet on February 24, 2021, with a financial outlay of Rs 15,000 crore and the production tenure from FY 2022-2023 to FY 2027-28, and provides financial incentive to 55 selected applicants for manufacturing of identified products under three categories for a period of six years. Under this scheme, high-value pharmaceutical products such as patented/off-patented drugs, biopharmaceuticals, complex generics, anti-cancer drugs, and auto-immune drugs, among others, are manufactured.
For pharmaceuticals, the initiative aims to reduce import dependence on Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs), strengthening India’s manufacturing base. By promoting production and innovation, it boosts domestic capabilities and global competitiveness.
The PLI Scheme for Medical Devices was launched to support domestic manufacturing of high-end medical equipment and reduce reliance on imports. The scheme provides financial incentives to manufacturers in key segments such as radiology, imaging, cancer care, and implants.
The period of the scheme is from financial year 2020-21 to financial year 2027-28 with total financial outlay of Rs. 3,420 crore. Under the scheme, financial incentive is given to selected companies, at the rate of 5 per cent of the incremental sales of medical devices manufactured in India and covered under the target segments of the scheme, for a period of five years.