Production Linked Incentive (PLI) Scheme for Pharmaceuticals
By Ministry of Chemicals and Fertilizers
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Quick Answer
A central government scheme offering financial incentives on incremental sales of pharmaceutical goods and in-vitro diagnostic medical devices to boost India's domestic manufacturing capabilities.
- Funding amount
- ₹15L – ₹1000Cr
- Funding type
- Subsidy
- Application deadline
- —
- Location
- Open to startups registered in India
Results & next round
Applications for this round are closed. The organiser has not published a selection list that we can verify yet.
Selections for this programme are announced by Ministry of Chemicals and Fertilizers. Official links are listed under Sources below.
We update this page when results are published, and when the next round opens.
About this subsidy
The Production Linked Incentive (PLI) Scheme for Pharmaceuticals was launched by the Ministry of Chemicals and Fertilizers, Department of Pharmaceuticals, with the core objective of significantly enhancing India's manufacturing capabilities within the pharmaceutical sector. This initiative aims to stimulate increased investment and production, while simultaneously promoting product diversification towards high-value goods, including advanced pharmaceutical products and in-vitro diagnostic medical devices. By incentivizing incremental sales over a defined base year, the scheme seeks to make India a global leader in the pharmaceutical supply chain. The program is implemented by the Small Industries Development Bank of India (SIDBI), acting as the Project Management Agency (PMA), which processes applications and facilitates the disbursement of incentives through a dedicated online portal. This strategic scheme plays a crucial role in strengthening the domestic pharmaceutical ecosystem, fostering innovation, and reducing reliance on imports for critical pharmaceutical ingredients and finished products.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Ministry of Chemicals and Fertilizers is a Union government ministry that oversees three departments: Chemicals and Petrochemicals, Fertilizers, and Pharmaceuticals. Its schemes cover production-linked incentives for manufacturers, market support for organic fertilisers, and…
Learn moreThe Small Industries Development Bank of India (SIDBI) is the government-owned development bank for India's micro, small and medium enterprises. It was set up on 2 April 1990 under an Act of Parliament and is headquartered at SIDBI Tower on Ashok Marg in Lucknow, with offices in…
Learn moreBenefits & Funding
- Amount
- ₹15L – ₹1000Cr
What You Get
- Financial Incentives: The PLI scheme offers substantial financial incentives on the net incremental sales of eligible pharmaceutical goods and in-vitro diagnostic medical devices. These incentives are calculated over a period of 6 financial years, from 2022-23 to 2027-28, encouraging sustained growth and investment.
- Incentive Rates: The rate of incentive varies by product category and year. For Category 1 and 2 products, it is 10% for the first four years (FY 2022-23 to 2025-26), reducing to 8% in the fifth year and 6% in the sixth year. For Category 3 products, the rates are 5% for the first four years, 4% for the fifth, and 3% for the sixth year.
- Maximum Incentive: The maximum incentive per applicant is capped, providing significant support to large enterprises. Group A applicants can receive up to ₹10,000 crore, Group B applicants up to ₹2,500 crore, and Group C applicants up to ₹50 crore.
- Disbursement Process: Incentives are disbursed annually based on submitted claims. A streamlined process ensures that 75% of the approved claim amount is released immediately upon order, with the remaining 25% released after the submission of final audited accounts, facilitating quicker access to funds.
- Disbursement
- Milestone Based
- Duration
- 73 months
- Bootstrap friendly
- Yes
Timelines & Process
Selection Process
Applications are rigorously processed and evaluated by the Project Management Agency (SIDBI). Selection is based on a pre-defined ranking methodology, which considers various factors including the applicant's Global Manufacturing Revenue, committed investments, and proposed product categories. The selection results are typically communicated within 90 days after the application window closes.
Application Process
- 1
Access & Apply Online
Access the official portal, register, and fill out the detailed application form with company and product specifics.
You - 2
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- 5
- 6
How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the primary goal of the PLI Scheme for Pharmaceuticals?
The scheme aims to boost India’s domestic manufacturing capabilities, attract significant investment, and promote diversification into high-value pharmaceutical products and in-vitro diagnostic medical devices, thereby reducing import dependence.
Who is eligible to apply for this PLI scheme?
Eligible applicants are manufacturers of pharmaceutical goods registered in India, producing products covered under the scheme's three categories. Eligibility also depends on global manufacturing revenue and committed investment, categorized into Group A, B, and C, with specific criteria for each, including a sub-category for MSMEs within Group C.
How are the financial incentives calculated and paid out?
Incentives are calculated as a percentage (ranging from 3% to 10%) of net incremental sales over a base year, paid over a 6-year period. Applicants must submit annual claims online. 75% of the approved claim is released immediately, and the remaining 25% upon submission of final audited accounts.
What are the maximum incentives an applicant can receive?
The maximum incentive per applicant is capped at ₹10,000 crore for Group A companies, ₹2,500 crore for Group B companies, and ₹50 crore for Group C companies.
Is MSME registration required for this scheme?
While not universally required, there is a specific eligibility sub-category for Micro, Small and Medium Enterprises (MSMEs) within Group C. MSMEs meeting the criteria for this group can apply under these relaxed thresholds.
What is the application process for the PLI Pharma Scheme?
Applications are submitted online through the designated Project Management Agency (SIDBI) portal. The process involves registration, completing the application form, paying a non-refundable fee, and if selected, submitting a Bank Guarantee and an Undertaking. Annual claims for incentives are also made via the portal.
Sources
Data on this page is compiled from official program and provider references.
News
- Why PLI 1.0 Has Paid Out Less Than A Fifth Of The Promised Rs 1.97 Lakh Crorethecore.in · 3 weeks ago
- Pharma PLI attracts over Rs 46,700 crore investments, but China still dominates API importsfinancialexpress.com · last month
- Bulk drug PLI investment crosses ₹5,200 crore, beats government targetcnbctv18.com · last month
- Centre’s PLI scheme gives booster shot to pharma and medtech sectorsmetimes.in · last month
- Govt disburses Rs 36,754 cr under PLI schemes as on June 30m.economictimes.com · last month
- Production Linked Incentive Schemes have Strengthened India’s Pharmaceutical, Bulk Drugs and Medical Devices Manufacturing Ecosystempib.gov.in · last month
Source: Google News aggregated
