Updated on June 19, 2025 02:53:21 PM
The Production Linked Incentive (PLI) Scheme for Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) has been formulated to transform the country into a global powerhouse and a manufacturing hub for the pharmaceutical industry. In this regard, the PLI Scheme for KSMs, DIs and APIs fulfills the needs of the increasing demand of high-quality drugs for both domestic as well as the export market through supporting required raw material production in the country. The objective of PLI Scheme for Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) is to decrease dependency on imports, increase competitive advantage, and promote innovation and innovation among Indian pharmaceutical industries. Thus, the PLI Scheme for KSMs, DIs and APIs promotes fresh innovation in drug production, creating opportunities for domestic and global investment for a competitive, diverse pharma manufacturing industry in India.
The PLI Scheme for KSMs, DIs and APIs is unveiled to create strong manufacturing linkages in the pharma value chain in order to make India self-reliant regarding APIs. Focusing on the promotion of domestic manufacturing of critical Key Starting Materials (KSMs), Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs) through the PLI Scheme, India aims to decrease import dependency and step up exports of quality pharmaceutical products. The PLI Scheme for KSMs, DIs and APIs benefits the selected industries whereby companies in the targeted sectors are offered incentives for investments on advanced capital equipment and other innovation essential in preparing superior drug ingredients. The PLI Scheme for KSMs, DIs and APIs has a goal of making the pharmaceutical industry almost autonomous in India with an emphasis on the idea of developing strong solution oriented and rather sophisticated manufacturing solutions through PLI Scheme for KSMs, DIs and APIs to end up generating multitude of employment opportunities and put India on the world map of an ideal location to manufacture cost effective drugs and medicines.
The Production Linked Incentive (PLI) Scheme for Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) offers several significant advantages to India’s pharmaceutical manufacturing sector:
The following table organizes the incentives of PLI Scheme for Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) based on product type and the applicable financial years, indicating the step-down structure for fermentation-based products:
| Product Type | Incentive Rate | Financial Years |
|---|---|---|
| Fermentation-based Products | 20% | FY 2023-24 to FY 2026-27 |
| 15% | FY 2027-28 | |
| 5% | FY 2028-29 | |
| Chemical Synthesis-based Products | 10% | FY 2022-23 to FY 2027-28 |
The following structure specifies the required investment for PLI Scheme for KSMs, DIs and APIs for different product categories, ensuring support is directed to critical, high-investment projects in the pharmaceutical supply chain:
| Segment | Threshold Investment Requirement |
|---|---|
| Fermentation-based 04 KSMs / Drug Intermediates | Rs. 400 crore |
| Fermentation-based 10 niche KSMs / DIs / APIs | Rs. 50 crore |
| Key Chemical Synthesis-based 04 KSMs / Drug Intermediates | Rs. 50 crore |
| Other 23 Chemical Synthesis-based KSMs / DIs / APIs | Rs. 20 crore |
Conclusion
The Production Linked Incentive (PLI) Scheme for Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) is clearly an ambitious policy plan towards achieving the vision of Make In India and self-sufficiency and competitiveness of India in the global pharmaceuticals manufacturing space. Through the introduction of the PLI Scheme for KSMs, DIs and APIs, it fosters structured incentives, increases domestic manufacturing, decreases reliance on imports, as well as improving export capabilities. Targeted at infrastructure development, investment promotion, and employment generation, the PLI scheme for KSMs, DIs, and APIs encourages new product development and technology upgradation in the sector. The PLI Scheme for KSMs, DIs and APIs offers focused support on greenfield projects and critical material manufacturing will not only solidify India’s position in the international pharmaceutical sector but will play a crucial role in both, economic and healthcare robustness.
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Frequently Asked Questions
The PLI Scheme for KSMs, DIs, and APIs aims to achieve indigenization in the manufacturing of APIs and other major components to bring down import dependency, to enhance the competitiveness as well as promote innovation in the pharma sector.
The PLI Scheme for KSMs, DIs, and APIs has several advantages such as securing new investment, strengthening infrastructure, increasing export competitiveness, domestic manufacturing growth, and job creation in the pharmaceutical sector.
The applicants have to be Indian manufacturers having facilities to manufacture critical KSMs, DIs, and APIs. Further, the PLI Scheme for KSMs, DIs, and APIs is only applicable to new projects or expansion of existing greenfield applications provided that the qualifying threshold investments in each category have been met.
Through the PLI Scheme for KSMs, DIs, and APIs, there are defined motivation tools to support and encourage the development of strategic products stressing on basic materials and improving infrastructure and technology to attain an independent nation for pharma production.
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