India’s pharmaceutical sector is undergoing a sweeping transformation driven by five major schemes designed to advance domestic innovation, reduce import dependence and establish global competitiveness. These initiatives, spearheaded by the Ministry of Chemicals and Fertilizers, reflect a strategic shift from cost-based manufacturing to research-led growth under the Atmanirbhar Bharat vision.
The Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) scheme has been launched with an outlay of ₹5,000 crore—approximately $600 million—with a goal to deepen research and strengthen collaboration between industry and academia. Seven Centres of Excellence have been established at the National Institutes of Pharmaceutical Education and Research with ₹700 crore in budgetary support to focus on antiviral and antibacterial drug discovery, medical devices, bulk drugs, novel delivery systems, phytopharmaceuticals and biological therapeutics. The scheme has approved 104 R&D projects and filed two patents. A further ₹4,250 crore has been allocated for supporting startups and industry-led innovation in priority areas.
The Production Linked Incentive (PLI) Scheme for Pharmaceuticals is boosting investment and product diversification into high-value drugs including biopharmaceuticals, patented and complex generics, anti-cancer and autoimmune medicines. As of March 2025, the scheme has attracted ₹37,306 crore in cumulative investment, surpassing the initial commitment of ₹17,275 crore. It has generated ₹2,66,528 crore in cumulative sales, including ₹1,70,807 crore in exports. The targeted ₹2,94,000 crore in sales over six years is now expected to be exceeded in the fourth year itself.
India’s self-reliance in critical raw materials is being further advanced by the PLI Scheme for Bulk Drugs. Against a committed investment of ₹3,938.5 crore over six years, the scheme has drawn ₹4,570 crore in investment by its third year. Production capacity has been established for 25 key starting materials, drug intermediates and active pharmaceutical ingredients.
Three Bulk Drug Parks are under development in Andhra Pradesh, Gujarat and Himachal Pradesh, each supported by ₹1,000 crore in Central assistance for infrastructure such as effluent treatment facilities, power, steam and warehousing. States are supplementing these parks with fiscal incentives including capital subsidies, tax reimbursements and exemptions on duties and charges.
The Strengthening of Pharmaceutical Industry scheme comprises two sub-schemes. The API-CF component has sanctioned ₹139.33 crore to pharmaceutical clusters for common testing, R&D, training and effluent plants. These are expected to serve over 1,300 pharma units and catalyze expansion through shared infrastructure. The RPTUAS sub-scheme supports small and medium pharma companies with turnovers under ₹500 crore to upgrade facilities in line with Schedule M of the Drugs Rules, 1945 and WHO-GMP standards. As of July 1, 2025, ₹135.84 crore has been sanctioned for 142 MSMEs.
Cumulatively, drug and pharmaceutical exports have grown 92 percent in six financial years, rising from ₹1,28,028 crore in FY 2018–19 to ₹2,45,962 crore in FY 2024–25.
In parallel, the Pradhan Mantri Bhartiya Janaushadhi Pariyojana has expanded access to affordable generics. A total of 16,912 Jan Aushadhi Kendras are functional nationwide, visited by 10–12 lakh citizens daily. The scheme offers medicines priced 50–80 percent lower than branded alternatives, with a product basket of 2,110 medicines and 315 devices across major therapeutic categories. Estimated savings of ₹38,000 crore have accrued to citizens over 11 years, while over 16,000 individuals—6,800 of them women—have gained self-employment through Kendra operations.
The multi-scheme strategy underscores India’s commitment to inclusive healthcare, resilient manufacturing and innovation-led pharmaceutical progress.
