The government is intensifying efforts to curb its reliance on Chinese pharmaceutical imports by upgrading its Production Linked Incentive (PLI) scheme. The Department of Pharmaceuticals (DOP) has expanded the initiative, targeting increased domestic manufacturing of crucial Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs). The strategic move focuses on essential drugs, including antibiotics, antifungals, and treatments for chronic diseases such as epilepsy and diabetes.
Progress Under the Initial PLI Scheme
Launched in 2021 with an initial allocation of ₹6,940 crore, the PLI scheme has already driven the establishment of 51 projects across 34 notified bulk drugs. So far, 22 projects have commenced operations, collectively contributing to an annual production capacity of 55,000 metric tonnes of APIs.
Noteworthy among these are a facility in Himachal Pradesh producing Clavulanic Acid and another in Punjab manufacturing Atorvastatin. Both plants exemplify India’s growing capability to reduce import dependence on critical pharmaceutical ingredients.
Persistent Import Reliance on China
Despite these advancements, India’s dependence on Chinese bulk drug imports remains significant. In the fiscal year 2023, around 75% of India’s bulk drug imports originated from China—an increase from 62% in FY14. Experts attribute this sustained reliance to challenges such as fierce pricing competition and the need to build a more resilient domestic manufacturing ecosystem.
Ambitious Targets to Curtail Imports by 2027
The government’s enhanced PLI scheme aims to transform this landscape by gradually reducing import dependence. As reported by knnindia.co.in, by 2027, the initiative targets a 75% reduction in imports of critical APIs, thereby strengthening India’s role in the global pharmaceutical supply chain and promoting greater self-reliance in the sector.
