The government has strengthened its efforts to expand domestic chemical and pharmaceutical manufacturing by combining infrastructure development with Production Linked Incentive (PLI) schemes, the ministry of chemicals and fertilizers announced. Several schemes are currently being implemented to drive investment, scale up production capacity, and reduce reliance on imports across key sectors.
PCPIRs Anchor Infrastructure Development for the Chemical Industry
At the core of the manufacturing expansion are the Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs). These regions follow a cluster-based development model, offering large-scale and environmentally compliant infrastructure. They also provide common facilities and support services, making them attractive hubs for new investments and job creation.
Plastic Parks Strengthen Downstream Processing Capacity
The ministry is also advancing the Plastic Park Scheme to consolidate downstream plastic processing. The scheme supports the development of modern industrial parks with shared infrastructure, with the Centre providing up to 50% of project cost, capped at ₹40 crore per park. The government has approved nine parks, and they are progressing through various stages of implementation.
Centres of Excellence Fuel Innovation in Petrochemicals
To promote research and technological advancement, the government has established eighteen Centres of Excellence (CoEs) under the petrochemicals scheme. These centres focus on:
*Developing new technologies
*Improving existing processes
*Supporting R&D in polymers, plastics and chemicals
The government finances up to 50% of project cost, with a ceiling of ₹5 crore.
Bulk Drug Parks
In the pharmaceuticals sector, three bulk drug parks have been approved in Andhra Pradesh, Gujarat and Himachal Pradesh with a total outlay of ₹3,000 crore. Each park will receive up to ₹1,000 crore in central assistance for key infrastructure, including:
*Effluent treatment systems
*Utilities and logistics
*Warehousing
*Waste-management facilities
States are supplementing these efforts with additional incentives such as capital subsidies and GST reimbursements.
Medical Devices Parks
Similarly, three Medical Devices Parks—in Greater Noida, Ujjain and Kanchipuram—are progressing with a combined budget of ₹300 crore. Common infrastructure across these parks is nearing completion.
As of September 2025:
*194 medical device manufacturers have been allotted land
*Construction has begun for 34 units
As reported by ddnews.gov.in, PLI schemes accelerate domestic API and pharmaceutical production. The ministry highlighted significant gains under the PLI schemes aimed at reducing India’s dependence on imported APIs, KSMs and drug intermediates.
