India to Boost its PLI Initiative for Drug Manufacturing

• India plans to expand its PLI scheme to cover more raw materials for drug manufacturing.
• The revised scheme aims to curb dependence on China for 80% of India's bulk drug imports.
• APIs form 35% of India’s pharma market, but most domestic output is export-oriented.

India is about to give a significant boost to its production-linked incentive (PLI) scheme for pharmaceuticals as it seeks to establish a stronger domestic production of key starting materials (KSMs) and reduce its dependence on Chinese imports.

The Department of Pharmaceuticals communicated on 14 May, that the revised scheme will widen the pool of molecules that receive incentives that are deemed critical for the production of KSMs, drug intermediates, and active pharmaceutical ingredients (APIs).

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Specific details regarding allocation, capacity, and incentive ceilings are still being worked out, but the action affirms the government’s vision for self-reliance. APIs, the essential unit that produces the therapeutic effect of the finished drug, are mainly imported, since roughly 80% of India’s bulk drug needs are met from abroad, although APIs cover roughly 35% of India’s pharma market. The generality of domestic API production is currently focused on exports.