Production Linked Incentive (PLI) Scheme For Pharmaceuticals - Ministry of Chemicals & Fertilizers | Current Affairs | Vision IAS

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Production Linked Incentive (PLI) Scheme For Pharmaceuticals

Updated: 17 Oct 2025
Ministry: Ministry of Chemicals & Fertilizers
Beneficiary: Miscellaneous

Overview

The PLI Scheme for Pharmaceuticals is a Central Sector initiative (2020–21 to 2028–29) managed by SIDBI to boost India’s pharmaceutical manufacturing and integrate it into global value chains.

Quick facts

  • Type: Central Sector Scheme
  • Purpose: To enhance India's manufacturing capabilities in the pharmaceutical sector
  • Project Management Agency: Small Industries Development Bank of India (SIDBI)
  • Tenure: FY 2020-21 to FY 2028-29

Objectives

  • To create global champions out of India and thereby penetrate the global value chains.

Salient Features

  • Applicant: Both MSMEs as well as Non-MSMEs are covered under:
    • Proprietary Firm 
    • Partnership Firm 
    • Limited Liability Partnership (LLP)
    • Company registered in India
A horizontal timeline showing five categories of eligible investment expenditures - New plant, machinery, equipment; Research and Development (R&D); Transfer of Technology (ToT); Product registration; and Construction of building, each represented with relevant icons.
  • Product categories
    • Category 1:Biopharmaceuticals; Complex generic drugs; Patented drugs; Orphan drugs; etc.
    • Category 2: Active Pharmaceutical Ingredients (APIs)/ Key Starting materials (KSM)/ Drug Intermediates (DIs) except those  covered under PLI scheme for APIs/KSMs and DIs
    • Category 3: Drugs not covered under Category 1 and Category 2 including drugs not manufactured in India
  • Financial incentive
    • It will be provided on the incremental sales over Base Year (FY 2019-20). 
    • Tenure of incentive payment: Maximum 6 years
  • Rate of incentive: 
    • Category 1 and 2: 10% initially, and to be successively reduced to 6%
    • Category 3: 5% initially, and to be successively reduced to 3%