Production Linked Incentive (PLI) scheme for the Pharmaceutical Sector

  • IASbaba
  • November 27, 2021
  • 0
UPSC Articles
Print Friendly, PDF & Email

Production Linked Incentive (PLI) scheme for the Pharmaceutical Sector

Part of: GS Prelims and GS- III – Economy; Manufacturing sector 

In News: The PLI Scheme for Pharmaceuticals is based on the strategy of “Atmanirbhar Bharat- Strategies for enhancing India’s manufacturing capabilities and enhancing exports in ten sectors”, which had been approved by the Union Cabinet.


  • To enhance India’s manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high value goods in the pharmaceutical sector. 
  • To create global champions out of India who have the potential to grow in size and scale using cutting edge technology and thereby penetrate the global value chains.

About the Scheme

The Scheme is expected to bring in investment of Rs.15,000 crore in the pharmaceutical sector.

  • It will be part of the umbrella scheme for the Development of the Pharmaceutical Industry.
  • Objective: (1) To enhance India’s manufacturing capabilities by increasing investment; (2) Product diversification to include high-value goods. 
  • Target Groups: The manufacturers who are registered in India will be grouped based on their Global Manufacturing Revenue (GMR) to ensure wider applicability of the scheme
  • Quantum of Incentive: 15,000 crores.
  • Category of Goods covered:
    1. Category 1: Biopharmaceuticals; Complex generic drugs; Patented drugs or drugs nearing patent expiry; Cell-based or gene therapy drugs; Orphan drugs; Other drugs as approved.
    2. Category 2: Active Pharmaceutical Ingredients, Key Starting Materials, Drug Intermediates.
    3. Category 3: Drugs not covered under Category 1 and 2.

News Source: PIB

For a dedicated peer group, Motivation & Quick updates, Join our official telegram channel –

Subscribe to our YouTube Channel HERE to watch Explainer Videos, Strategy Sessions, Toppers Talks & many more…

Search now.....

Sign Up To Receive Regular Updates