PLI Schemes for Pharma, Bulk Drugs and Medical Devices: What They Have Achieved So Far
The Department of Pharmaceuticals shared progress data on three Production Linked Incentive (PLI) schemes: one for bulk drugs, one for pharmaceuticals and one for medical devices. (A PLI scheme pays companies a cash reward linked to how much extra they produce and sell from Indian factories.)
PLI for Bulk Drugs (approved 2020, outlay ₹6,940 crore): 48 projects approved for 41 critical products. As of June 2026, investment reached ₹5,210.74 crore, above the committed ₹4,330 crore. 39 projects making 28 APIs/KSMs (the key raw materials of medicines) have started production. Sales stood at ₹3,792.49 crore, including exports of ₹560.16 crore, and about 5,127 jobs were created.
Fermentation-based raw materials such as Penicillin-G, Clavulanic Acid and Rifampicin, for which India depended mostly on imports, are now being made in India under the bulk drugs scheme.
PLI for Pharmaceuticals (approved 2021, outlay ₹15,000 crore): 55 companies selected, including 20 MSMEs (small and medium firms). As of June 2026, they invested ₹46,744 crore against a target of ₹17,275 crore, made cumulative sales of ₹4,02,869 crore (including ₹2,57,370 crore of exports) and created 1,21,294 jobs.
PLI for Medical Devices (approved 2020, outlay ₹3,420 crore): it pays 5% of extra sales for five years. Production of 57 unique medical devices has started in India, including MRI machines, CT scanners, Cath Labs, Linear Accelerators, C-Arms, mammography machines, ultrasound systems, anaesthesia machines and heart valves.
The government said the three schemes together cover the full chain, from critical raw materials and APIs to high-value medicines and advanced medical technology, and help reduce India's dependence on imports.
Production Linked Incentive (PLI) Scheme
The Production Linked Incentive (PLI) Scheme is a government plan that pays companies a cash reward for making more goods in India. The reward is a small percentage of the extra sales a company makes, compared to a fixed starting year (the base year). If a company does not raise its production, it gets nothing. So the government pays only for real results, not for promises.
The latest progress data shows how the PLI model has played out in the health sector. In the pharmaceuticals scheme, actual investment (₹46,744 crore) is more than two and a half times the target. In the bulk drugs scheme, 39 projects have started making 28 APIs and raw materials that India earlier imported.
Active Pharmaceutical Ingredients (APIs)
Every medicine has one part that actually treats the illness. This part is called the Active Pharmaceutical Ingredient, or API. In a paracetamol tablet, the paracetamol is the API; the rest (starch, binders, coating) only helps shape the tablet and make it easy to swallow. APIs are also called bulk drugs, because they are made in large quantities as a powder and later turned into tablets, capsules, syrups or injections.
The PLI Scheme for Bulk Drugs was built to fix India's dependence on imported APIs and KSMs. As of June 2026, 39 projects have started making 28 of these raw materials, including fermentation products like Penicillin-G, Clavulanic Acid and Rifampicin that India had stopped making at scale.
Medical Device Regulation in India
A medical device is any instrument, machine, implant or material used to find, prevent, watch or treat a disease or injury, where it works mainly in a physical way rather than as a chemical medicine. A thermometer, a syringe, a blood pressure monitor, a CT scanner, a heart stent and a pacemaker are all medical devices. Medical device regulation means the laws and rules that make sure these devices are safe, work as promised and are made to proper quality.
Under the PLI Scheme for Medical Devices, production of 57 unique devices, such as MRI machines, CT scanners, Linear Accelerators and heart valves, has started in India. Global makers have set up or expanded plants here. Every such device must follow the Medical Devices Rules, 2017, so growing local output also depends on a strong and efficient regulator.
- PLI for Bulk Drugs: approved 2020; outlay ₹6,940 crore; 48 projects for 41 critical products
- Bulk drugs (as of June 2026): investment ₹5,210.74 crore vs committed ₹4,330 crore; 39 projects commissioned making 28 APIs/KSMs; sales ₹3,792.49 crore; exports ₹560.16 crore; about 5,127 jobs
- Fermentation products now made in India: Penicillin-G, Clavulanic Acid, Rifampicin
- PLI for Pharmaceuticals: approved 2021; outlay ₹15,000 crore; 55 applicants (20 MSMEs)
- Pharmaceuticals (as of June 2026): investment ₹46,744 crore vs target ₹17,275 crore; cumulative sales ₹4,02,869 crore including exports of ₹2,57,370 crore; 1,21,294 jobs
- PLI for Medical Devices: approved 2020; outlay ₹3,420 crore; 5% incentive on extra sales for five years; 57 unique devices now in production
- Devices now made in India include MRI machines, CT scanners, Cath Labs, Linear Accelerators, C-Arms, mammography machines, ultrasound systems, anaesthesia machines and heart valves
- Nodal department: Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers