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.

Production Linked Incentive (PLI) Scheme for Pharmaceuticals

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.

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.

Production Linked Incentive (PLI) Scheme for Pharmaceuticals

Production Linked Incentive (PLI) Scheme for Pharmaceuticals

Subsidy providers

Application Process

How to apply

Webinars

Grants closing soon

Subsidies

Debt programs

Competitions closing soon

Equity closing soon

Frequently Asked Questions

About this subsidy

Eligibility

Timelines & Process

Benefits & Funding

Webinars

Grants closing soon

Subsidies

Debt programs

Competitions closing soon

Equity closing soon

Startup Software Credits

Manus

Semrush

Reclaim.ai

Higgsfield

Warp

Hostinger

Replit

Bolt

Notion

Google

Huawei

Microsoft

Can Your Startup Win Grants?

How Do I Write a Winning Application

Can Your Startup Win Grants?