India’s export of drugs and pharmaceuticals has increased by 92 percent over the last six financial years, thanks to the various schemes being implemented by the Centre to realise the vision of Aatmanirbhar Bharat in the pharmaceutical sector.

The country’s pharma exports rose to INR 2,45,962 crore in FY2024-25 from INR 1,28,028 crore in FY2018-19, Minister of State for Chemicals and Fertilisers Anupriya Patel has informed the Parliament.

In a written reply to a question, Patel updated the progress of the various schemes being implemented to support domestic innovation and reduce reliance on pharmaceutical imports.

These included: (i) Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) scheme; (ii) Production Linked Incentive (PLI) Scheme for Pharmaceuticals; (iii) PLI Scheme for promotion of domestic manufacturing of critical Key Starting Materials (KSMs) / Drug Intermediates (DIs) / Active Pharmaceutical Ingredients (APIs) in India (also known as the PLI Scheme for Bulk Drugs); (iv) Scheme for Promotion of Bulk Drug Parks; and (v) Strengthening of Pharmaceutical Industry scheme.

PRIP scheme

The PRIP scheme was launched on September 26, 2023, with an outlay of INR 5,000 crore to transform India’s Pharma MedTech sector from cost- to innovation-based growth by strengthening research and promoting industry-academia linkage for research and development in priority areas in drug discovery and development and medical devices.

The minister told the Lok Shabha that under this, seven Centres of Excellence (CoEs) have been set up, one at each of the seven National Institutes of Pharmaceutical Education and Research (NIPERs), with total budgetary support to the tune of INR 700 crore, to create research infrastructure and promote R and D in identified areas. The CoEs are in the areas of anti-viral and anti-bacterial drug discovery and development, medical devices, bulk drugs, flow chemistry and continuous manufacturing, novel drug delivery system, phytopharmaceuticals and biological therapeutics.

So far, 104 research projects have been approved under the scheme and two patents have filed.

The scheme also includes an outlay of INR 4,250 crore for support to industry including MSMEs and startups, including in collaboration with academia, for undertaking research and innovation projects in priority areas. As and when applications are invited under the scheme, applicants from any State or Union Territory can apply.

PLI Scheme  

Launched in 2020, the PLI Scheme for Pharmaceuticals aims to enhance India’s manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high-value goods in the pharmaceutical sector. It incentivises production of high-value medicines such as biopharmaceuticals, complex generic drugs, patented drugs or drugs nearing patent expiry, auto-immune drugs, anti-cancer drugs, etc. as well as production of APIs/KSMs/DIs other than those notified under the PLI Scheme for Bulk Drugs, thereby contributing to selfreliance. The scheme has enabled enhanced investment and production in eligible products.

Patel noted that as of March 2025, the scheme has significantly surpassed its initial investment target of INR 17,275 crore over six years. By the end of its third year, cumulative investments had reached INR 37,306 crore. Approved products under the scheme have generated cumulative sales of INR 2,66,528 crore, including exports worth INR 1,70,807 crore.

PLI Scheme for Bulk Drugs

The PLI Scheme for Bulk Drugs, which has a total budgetary outlay of INR 6,940 crore, aims to avoid disruption in supply of critical active pharmaceutical ingredients (APIs) used to make critical drugs for which there are no alternatives by reducing supply disruption risk due to excessive dependence on single source.

The Parliament was informed that as of March 2025, the scheme had significantly exceeded its committed investment target of INR 3,938.5 crore for the six-year production period, with cumulative investments reaching INR 4,570 crore by the end of its third year.

Under the scheme, production capacity has been established for 25 APIs, KSMs, and DIs. Between FY2022-23 and FY2024-25, the scheme has reported cumulative sales of INR 1,817 crore, including exports worth INR 455 crore, thereby avoiding imports worth INR 1,362 crore.

Scheme for Promotion of Bulk Drug Parks

According to Patel, under the Scheme for Promotion of Bulk Drug Parks with a total budgetary outlay of INR 3,000 crore, three parks have been approved and are currently at different stages of development in Andhra Pradesh, Gujarat, and Himachal Pradesh, through their respective State Implementing Agencies.

The total project cost for the three bulk drug parks exceeds INR 6,300 crore, with each park receiving Central assistance of INR 1,000 crore for the development of common infrastructure facilities.

These parks would offer land and utilities such as power, water, effluent treatment plant, steam, solid waste management, warehouse facilities at a subsidised rate. The State Implementing Agencies of the three States are also offering fiscal incentives in the form of capital subsidy on fixed capital investment, interest subsidy, state goods and services tax reimbursement, exemption of stamp duty and registration charges, etc. Further, the scheme provides that applicants for allotment of land in the parks to set up units for manufacturing products prioritised in the PLI Scheme for Bulk Drugs will have priority in land allotment.

 Strengthening of Pharmaceutical Industry scheme

This scheme supports realisation of the vision of Atmanirbhar Bharat through the two sub-schemes: Assistance to Pharmaceutical Industry for Common Facilities (API-CF) and Revamped Pharmaceutical Technology Upgradation Assistance Scheme (RPTUAS).

The API-CF scheme aims to strengthen the existing infrastructure facilities by providing financial assistance to pharmaceutical clusters for creation of common facilities. It helps create tangible assets as common facilities, such as testing labs, R and D labs, effluent treatment plants and training centres, thereby supporting the long-term viability and growth of the clusters by enabling them to develop and leverage shared resources.

Under API-CF, projects with total grant-in-aid of INR 139.33 crore to pharmaceutical clusters have been approved for creation of common facilities and are at various stages of execution, the Minister revealed.

Once these common facilities are created, they are expected to provide access to common facilities to around 1,300 existing pharmaceutical units, besides catalysing the augmentation of capacities at these clusters through the setting up of new pharmaceutical units and expansion of existing units.

The RPTUAS scheme aims to support upgrade of production facilities of small and medium pharmaceutical companies having average turnover of less than INR 500 crore, to attain the standards specified in the revised Schedule M to the Drugs Rules, 1945 and the World Health Organization – Good Manufacturing Practices (WHO-GMP), thereby improving their competitiveness, both domestically and globally.

Patel stated that as of July 1, 2025, support has been approved for 142 micro, small, and medium pharmaceutical companies under the scheme to help them upgrade and meet the required standards, with a total sanctioned amount of INR 135.8 crore.

Pradhan Mantri Bhartiya Janaushadhi Pariyojana scheme

Providing an update on the Pradhan Mantri Bhartiya Janaushadhi Pariyojana, Patel stated that as of June 30, 2025, a total of 16,912 Jan Aushadhi Kendras (JAKs) had been established.

The government launched the scheme to ensure the availability of quality generic medicines at affordable prices for all. The scheme’s product basket includes 2,110 medicines and 315 surgicals, medical consumables, and devices, covering all major therapeutic categories such as cardiovascular, anti-cancer, anti-diabetic, anti-infective, anti-allergic, gastrointestinal medicines, and nutraceuticals.

 “As a result of the scheme, in the last 11 years, estimated savings of about INR 38,000 crore have accrued to citizens in comparison to the prices of branded medicines. Further, the scheme has provided self-employment to over 16,000 persons, including over 6,800 women entrepreneurs,” the Minister added.

Furthermore, Patel informed Parliament that Micro, Small and Medium Enterprises (MSMEs) in the pharmaceutical sector are being supported through the Strengthening of Pharmaceutical Industry scheme and the PRIP scheme. Under the PLI Scheme for Bulk Drugs, 13 MSMEs have been approved, while 20 MSMEs have been selected under the PLI Scheme for Pharmaceuticals—making them eligible for production-linked incentives.