Indian Pharma Sector Sees Rs. 29,268 Crore Increase Under PLI Scheme Till May 2024

India’s Production Linked Incentive (PLI) scheme has spurred significant investment in the pharmaceutical sector, with the aim of strengthening domestic manufacturing and reducing dependence on imports, according to data from the Department of Pharmaceuticals (DoP).

The sector attracted Rs. The government has said that we will allocate Rs 29,268 crore to increase production capacity and diversify the pharmaceutical base. In May, the investment value amounted to PLN 500,000. 940 crore, an increase of 3.32% over the April 2024 figure of Rs 28,328 crore. Production increased by 12.3% to Rs. 1,61,209 crore in May, as against Rs. 1,43,553 crore in the previous month.

Employment under PLI for the pharma industry increased by 20% to 71,763, up from 59,768 in April, with 261 manufacturing plants commissioned by May 2024, government data showed. The wholesale pharmaceuticals segment saw an increase in investments to Rs 3,737.33 crore from Rs 3,715 crore in April. Production rose 10.3% to Rs 1,067.45 crore in May, with employment increasing 19% to 3,565 jobs from 2,994 in April. This segment currently boasts 31 completed projects.

At the same time, the medical devices sector secured Rs 958.72 crore in investments, taking its production capacity to Rs 5,986.56 crore. The creation of 17 new production plants transformed the sector into a center of innovation and technology, employing 5,396 people.

“The success of the PLI program goes beyond financial investments and has strategic implications for the Indian pharmaceutical industry,” noted Dr. Vivek Desai, Founder and Managing Director, HOSMAC. “Reducing dependence on medical technology imports and increasing domestic production is crucial as we approach the Union Budget 2024-25,” he said.

Launched in 2021 with a financial outlay of Rs. The Rs 15,000-crore PLI scheme aims to provide incentives over six years to 55 selected applicants, including 20 micro, small and medium enterprises (MSMEs). So far, 278 applications have been received, of which 55 have been approved. In the bulk medicines segment, 48 out of 249 applications were approved.