PLI-led Pharma FDI Crosses Rs 19,134 cr

New Delhi: India’s pharmaceuticals and medical devices sector has seen a FDI (foreign direct investment) inflow to the tune of Rs11,888 crore from April to December in the financial year ended on March 31, 2025, apart from which 13 FDI proposals worth Rs7,246.40 crore for brownfield projects during 2024-25 have been approved, taking the total FDI to Rs19,134.4 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 Rs3,938.57 crore, the actual realised investment has already reached Rs4,253.92 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 Rs1,910 crore investment and expected import substitution of Rs2,700 crore per annum.

Clavulanic Acid Project at Nalagarh in Himachal Pradesh is also being implemented under the scheme with an investment of Rs450 crore and is expected to result in an import substitution of Rs600 crore per annum.

The PLI Scheme for Pharmaceuticals was approved by the Union Cabinet on February 24, 2021, with a financial outlay of Rs15,000 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.