Govt reports ₹4,254 cr investment under API PLI scheme, creating domestic capacity for 25 critical drug ingredients with ₹412 cr exports.
Government Reports Significant Progress in Reducing Critical Drug Ingredient Imports
New Delhi, July 2024: The Indian government has approved 48 strategic projects under its Production Linked Incentive (PLI) scheme for Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs), marking a crucial step toward reducing the country’s dependence on imported pharmaceutical raw materials.
Key Achievements of PLI Scheme for Pharmaceuticals (as of December 2024)
| Metric | Target | Achievement | % Completion |
|---|---|---|---|
| Approved Projects | 48 | 48 | 100% |
| Investment Commitment | ₹3,938.5 cr | ₹4,254 cr | 108% |
| Cumulative Sales | – | ₹1,556 cr | – |
| Import Substitution | – | ₹1,144 cr | – |
| Export Earnings | – | ₹412 cr | – |
| API/KSMs Covered | 25 | 25 | 100% |
Strategic Impact on Pharmaceutical Sector
1. Critical Supply Chain Resilience
✔ 25 previously imported APIs/KSMs now manufactured domestically
✔ Reduced single-source dependency from China (previously 70%+ imports)
✔ Enhanced drug security for essential medicines including:
- Antibiotics (Penicillin G, Erythromycin)
- Cardiovascular drugs (Atorvastatin intermediates)
- Diabetes medications (Metformin APIs)
2. Financial Performance Exceeding Targets
- Investment Surge: ₹4,254 crore committed vs ₹3,938.5 crore planned
- Operational Results:
- ₹1,556 crore cumulative sales
- ₹412 crore exports achieved
3. Employment & Capacity Building
👨🔬 High-skilled jobs: 8,500+ in technical roles
🏭 MSME Participation: 32 of 48 projects by small/mid-sized firms
🔬 Technology Transfer: 14 patented processes indigenized
Scheme Implementation & Industry Outreach
Multi-Channel Awareness Campaign
🌐 Digital Engagement:
- 18 stakeholder webinars with 2,500+ participants
- Dedicated scheme portal with FAQ repository
📱 Social Media: #MakeAPIsInIndia campaign (3.2M impressions)
Geographical Distribution
📍 Top 5 States:
- Gujarat (14 projects)
- Maharashtra (11 projects)
- Andhra Pradesh (7 projects)
- Himachal Pradesh (6 projects)
- Telangana (5 projects)
Ministerial Statement
Anupriya Patel, MoS Chemicals & Fertilizers:
“This PLI initiative has transformed India from being ‘pharmacy of the world’ to becoming ‘laboratory of the world’. Our ₹1,144 crore import substitution already demonstrates strategic success in essential drug security.”
Future Roadmap
🔹 Phase-2 Expansion: 15 more APIs being considered
🔹 Cluster Development: 3 API parks under construction
🔹 R&D Boost: 5% additional incentive for novel process development
Global Context
- China’s Share: Reduced from 68% to 52% in covered APIs
- Export Potential: Targeting $2B API exports by 2027