India saves ₹1,362 crore in pharma imports through domestic drug production push: government

India’s strategic investment in domestic pharmaceutical manufacturing has helped the country avoid ₹1,362 crore in imports of pharma raw materials, Parliament was informed on Tuesday.

The savings come as a result of the Production-Linked Incentive (PLI) Scheme for Bulk Drugs, which aims to reduce India’s dependence on imported active pharmaceutical ingredients (APIs), drug intermediates (DIs), and key starting materials (KSMs).

Minister of State for Chemicals and Fertilisers, Anupriya Patel, in a written reply to the Rajya Sabha, highlighted that till March 2025, India successfully created domestic manufacturing capacity for 25 critical items under the PLI scheme. These efforts have significantly reduced the country’s vulnerability to external supply disruptions.

"As a result of the scheme, cumulative sales of Rs 1,817 crore have been reported over the period from the beginning of the scheme till March 2025, including exports of Rs 455 crore, thereby avoiding imports worth Rs 1,362 crore and creation of domestic manufacturing capacity for 25 identified KSMs/DIs/APIs," she stated.

The PLI Scheme for Bulk Drugs, with a total outlay of ₹6,940 crore, was launched to bolster domestic production of essential raw materials for pharmaceuticals that were previously largely imported.

According to Patel, while the scheme spans a six-year period with an investment commitment of ₹3,938.5 crore, actual investments have already exceeded expectations, reaching ₹4,570 crore as of March 2025.

Patel noted that the initiative targets APIs that are vital for the production of critical drugs, especially those without viable alternatives. The move is part of a broader national effort to reduce risks associated with over-dependence on single-country sourcing, particularly in light of global supply chain challenges.

Before production commenced under the PLI framework, many of the approved pharmaceutical products were imported, she added.

In addition to the bulk drugs scheme, the government has rolled out a larger PLI Scheme for Pharmaceuticals with an outlay of ₹15,000 crore. To support infrastructure, three bulk drug parks have also been approved under a ₹3,000 crore scheme. These parks, located in Andhra Pradesh, Gujarat, and Himachal Pradesh, are currently at various stages of development.