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Pharma PLI Draws Record Investment, But China Import Dependence Persists
India’s government created pharmaceutical incentive schemes to make more medicines and drug ingredients at home.
These programs attracted Rs 46,744 crore in investments by June 2026.
They also helped generate large sales, exports and 1.21 lakh jobs.
A separate bulk-drug program commissioned 39 projects for making important drug ingredients.
Some products, including Penicillin-G, Clavulanic Acid and Rifampicin, are now being made domestically.
However, China still supplies most of India’s imported drug ingredients.
Imports from China increased between FY21 and FY25.
This means the schemes have built new factories, but they have not yet broadly reduced dependence on China.
The pharma PLI attracted Rs 46,744 crore in investments by June 2026, against a target of Rs 17,275 crore.
PLI-backed production generated total sales of Rs 4.03 lakh crore, including exports worth Rs 2.57 lakh crore.
The schemes created 1.21 lakh jobs, while the bulk-drug PLI commissioned 39 projects covering 28 APIs.
Imports of APIs, key starting materials and drug intermediates from China rose from Rs 18,646 crore in FY21 to Rs 27,032 crore in FY25.
China’s share of these imports increased from 68.2% in FY21 to 73.7% in FY25, despite efforts to expand domestic production.
- Who
- The Indian government, pharmaceutical manufacturers and bulk-drug producers.
- What
- Production-linked incentive schemes attracted major pharmaceutical investments and expanded domestic production, but dependence on Chinese drug inputs remained high.
- Where
- In domestic pharmaceutical manufacturing, with relevant imports sourced from China; bulk drug parks were approved in Gujarat, Himachal Pradesh and Andhra Pradesh.
- When
- The figures cover progress through June 2026, with import comparisons for FY21 and FY25.
- Why
- The schemes were introduced to strengthen drug supply chains, promote high-value medicines and reduce dependence on imported APIs, key starting materials and drug intermediates.
Domestic Capacity Gains
Continuing China Dependence
Effect of the PLI schemes
Domestic Capacity Gains
The government says the schemes have attracted investment above target, created jobs, commissioned projects and started domestic production of critical drug inputs.
Continuing China Dependence
The import data indicate that the schemes have not yet produced a broad reduction in dependence on China.
Import dependence
Domestic Capacity Gains
The government says 191 of 726 APIs, key starting materials and drug intermediates made under the PLI are being manufactured in India for the first time.
Continuing China Dependence
Imports of these products from China rose from Rs 18,646 crore in FY21 to Rs 27,032 crore in FY25, while China’s share increased from 68.2% to 73.7%.
Key facts
- Pharma PLI investment
- Rs 46,744 crore by June 2026
- Original investment target
- Rs 17,275 crore
- Total sales
- Rs 4.03 lakh crore
- Exports
- Rs 2.57 lakh crore
- Jobs generated
- 1.21 lakh
- Bulk-drug PLI projects
- 39 projects covering 28 APIs commissioned
- China import share
- 73.7% of API, KSM and drug-intermediate imports in FY25
Quotes
Government official statement
An official statement describing the purpose of the pharmaceutical PLI scheme
“The scheme was launched to strengthen domestic manufacturing of 41 identified critical products and reduce dependence on imports, particularly for APIs and other essential pharmaceutical building blocks.”
financialexpress.com
Sources
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