Production Linked Incentive (PLI) Scheme for Pharmaceuticals

What is the PLI Scheme for Pharmaceuticals?

The Production Linked Incentive (PLI) Scheme for Pharmaceuticals is a central sector scheme of the Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers. According to the Department, the scheme has a total outlay of Rs 15,000 crore and runs over the period FY 2020-21 to FY 2028-29, with incentives paid on incremental sales for six years from FY 2022-23 to FY 2027-28.

The PLI Scheme for Pharmaceuticals is designed to move Indian manufacturing up the value chain: away from dependence on low-margin, high-volume products and towards high-value products such as biopharmaceuticals and complex generics. It rewards companies that increase production and sales of these products in India.

Main objectives

• Promote domestic manufacturing of high-value pharmaceutical products.
• Reduce import dependence in complex and patented medicines.
• Improve the global competitiveness of the Indian pharmaceutical industry.
• Attract fresh investment and create skilled employment.

What does the PLI Scheme for Pharmaceuticals cover?

The scheme groups eligible products into three categories, per the Department of Pharmaceuticals guidelines:

Applicants are also placed into three groups by Global Manufacturing Revenue: Group A (Rs 5,000 crore or more), Group B (Rs 500 crore up to Rs 5,000 crore) and Group C (below Rs 500 crore). Each group has a ring-fenced share of the total outlay.

How much does the PLI Scheme for Pharmaceuticals provide?

Incentives are paid on incremental sales of eligible products over a base year, per the Department of Pharmaceuticals guidelines:

• Category 1 and Category 2 products to 10% of incremental sales for the first four years (FY 2022-23 to 2025-26), 8% in the fifth year (FY 2026-27) and 6% in the sixth year (FY 2027-28).
• Category 3 products to 5% for the first four years, 4% in the fifth year and 3% in the sixth year.

Eligibility is subject to a minimum cumulative incremental investment and a minimum percentage growth in sales of manufactured goods, both set out per group in the scheme guidelines.

The incentive is not open-ended. For Category 1 products the payout is capped at Rs 100 crore per applicant per year, so a very large manufacturer cannot draw an unlimited share of the outlay. Each selected applicant also has a ceiling on total incentive fixed against its committed investment and product category, and the incentive for any year is paid only after the applicant demonstrates the required incremental sales over the base year (FY 2019-20) and the committed cumulative investment for that year.

Payment follows a two-part release. According to the Department of Pharmaceuticals, 75% of the approved claim is released on order once the Project Management Agency verifies the claim, and the remaining 25% is released after the applicant submits final audited accounts for the year. This structure protects public money against over-claiming and ties the final rupee of incentive to audited performance rather than to a self-declared figure.

Who is eligible for the PLI Scheme for Pharmaceuticals?

A company can apply if it:

• Is a company registered in India that manufactures, or commits to manufacture, the eligible high-value products.
• Meets the Global Manufacturing Revenue threshold for Group A, B or C.
• Commits to the minimum investment and incremental-sales growth thresholds for its category and group.

You are not eligible if:

• You are an individual, student or job seeker seeking a personal grant, the PLI Scheme for Pharmaceuticals is a company incentive scheme with no individual benefit of any kind.
• Your product does not fall within the notified eligible-product list.
• Your company cannot meet the minimum investment or incremental-sales thresholds for its group.

Anyone offering personal "PLI Pharma registration" to individuals for a fee is running a scam, the scheme has no citizen application.

How to apply for the PLI Scheme for Pharmaceuticals

The PLI Scheme for Pharmaceuticals has no citizen application; the process is entirely for companies and was conducted online through the Department of Pharmaceuticals:

1. Register your company on the Department of Pharmaceuticals PLI portal (the application window was hosted on the Department's online system).
2. Confirm which product category (1, 2 or 3) and which revenue group (A, B or C) your company falls under.
3. Prepare the detailed project report, audited financials establishing your Global Manufacturing Revenue, and proof of manufacturing capability.
4. Submit the online application with the required documents and application fee.
5. If selected after appraisal by the supported Committee, execute the agreement and claim incentives against verified incremental sales each year.

Note: the application window has closed. Selected applicants are in the disbursement phase. Confirm the current status on the Department of Pharmaceuticals portal before acting on any claim about a reopened window.

Progress so far

According to the Department of Pharmaceuticals, 55 applicants were selected under the scheme across the three groups: 11 in Group A, 9 in Group B and 35 in Group C, of which 20 are MSMEs. The scheme has since moved into its disbursement phase, with incentives released against verified incremental sales; the first release under the scheme was Rs 166 crore. As of mid-2025, the Department reported cumulative investment in new plant, machinery and allied utilities worth about Rs 18,842 crore, with fresh capacity created at 28 greenfield manufacturing locations equipped to make approved formulations — including vaccines and biosimilars, and raw materials such as APIs and excipients. Because these figures are revised as claims are processed, confirm the latest numbers on pharmaceuticals.gov.in before relying on them.

The PLI Scheme for Pharmaceuticals sits alongside two related Department of Pharmaceuticals schemes, the PLI Scheme for Bulk Drugs (KSMs, Drug Intermediates and APIs) and the PLI Scheme for Medical Devices, which together target self-reliance across the pharmaceutical value chain.

How does the PLI Scheme for Pharmaceuticals differ from a subsidy?

The PLI Scheme for Pharmaceuticals is a performance-linked incentive, not a grant or upfront capital subsidy. Three features set it apart:

• Paid on incremental sales. A company earns its incentive only on the increase in sales of eligible products over an agreed base year, so it must genuinely produce and sell more high-value products.
• Category-based rates. The rate depends on the product category to 10% tapering to 6% for the most complex products (Categories 1 and 2), and 5% tapering to 3% for Category 3 to steering investment towards the highest-value products.
• Thresholds every year. A company must meet its committed cumulative investment and incremental-sales growth to earn the incentive; missing them can reduce or withhold the payout for that year.

Because of this design, real disbursement tracks how much selected companies actually manufacture and sell. It is not a guaranteed payment.

Help and where to verify details

There is no citizen helpline for the PLI Scheme for Pharmaceuticals because it has no individual application. Companies raise queries through the Department of Pharmaceuticals PLI portal. The scheme guidelines, eligible-product list, group allocations and the list of selected applicants are published on pharmaceuticals.gov.in and in PIB releases.

Treat any offer of personal "pharma PLI registration", any demand for a fee to "add your name", or any request for OTPs or bank details in the scheme's name as a scam. The scheme deals only with registered companies, never with individual beneficiaries.