"PLI Schemes Boost Pharma, Bulk Drugs, Medical Device Manufacturing"
PLI Scheme
government incentive tied to incremental sales or investment growth in a targeted sector.
Bulk Drug/API
raw chemical ingredient used to manufacture a finished medicine.
The Production Linked Incentive (PLI) scheme was launched in 2020 as the centerpiece of the government's Atmanirbhar Bharat and Make in India strategy. It offers financial incentives tied to incremental sales or investment, rather than blanket protection, so only firms that actually scale up production receive support. The scheme was extended across fourteen sectors, including pharmaceuticals, bulk drugs and medical devices, areas where India had built strong generic-manufacturing capability under the Patents Act, 1970 and its 2005 amendment for TRIPS compliance, but remained heavily import-dependent for basic raw materials.
Three separate PLI schemes now operate in this space, all implemented by the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers. The PLI Scheme for Bulk Drugs, approved in 2020, targets 41 identified critical Active Pharmaceutical Ingredients (APIs), Key Starting Materials (KSMs) and Drug Intermediates (DIs), where India had grown dependent on imports mainly from China. The PLI Scheme for Pharmaceuticals, approved in 2021, pushes manufacturers toward high-value output such as biopharmaceuticals and complex generics. The PLI Scheme for Medical Devices, also approved in 2020, targets high-end equipment like MRI machines and cancer-care devices that India imported almost entirely before.
This mirrors a broader pattern seen across PLI schemes generally. They have drawn in both domestic firms and multinational manufacturers, but wider participation does not automatically translate into a larger global trade footprint. India's share of global merchandise exports remains close to 2 percent even as PLI beneficiaries report rising investment and sales. This is a reminder that incentive schemes work best alongside wider trade and logistics reforms, not as a standalone lever.
Each pharma PLI scheme uses an incentive design suited to its sector. The Medical Devices scheme gives a 5 percent incentive on incremental sales of eligible devices for five years, covering four segments: cancer-care and radiotherapy devices, radiology and imaging devices, anaesthesia and renal-care devices, and implants including implantable electronic devices. The Bulk Drugs scheme instead rewards greenfield investment in identified critical products, since APIs are commodity inputs where price competitiveness, not premium branding, decides market share. The Pharmaceuticals scheme sits between the two, pushing a shift toward complex, high-value formulations rather than low-margin generics. …
Consider the following statements:
Statement-I: India accounts for 3.2% of global export of goods.
Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme.
Which one of the following is correct in respect of the above statements?
Discuss the rationale of the Production Linked Incentive (PLI) scheme. What are its achievements? In what way can the functioning and outcomes of the scheme be improved?
Match List-I (PLI Scheme) with List-II (Financial Outlay) and select the correct answer using the codes given below:
List-I:
A.PLI Scheme for Bulk Drugs
B.PLI Scheme for Pharmaceuticals
C.PLI Scheme for Medical Devices
List-II:
1.₹6,940 crore
2.₹15,000 crore
3.₹3,420 crore
With reference to the Production Linked Incentive (PLI) scheme in India, consider the following statements:
1.Incentives under PLI schemes are linked to incremental sales or investment rather than an upfront capital subsidy.
2.All PLI schemes in the pharmaceutical sector are limited to Indian-owned companies only.
3.Global manufacturers have also participated in India's PLI Scheme for Medical Devices.
Which of the statements given above is/are correct?
With reference to the PLI Scheme for Promoting Domestic Manufacturing of Medical Devices, consider the following statements:
1.It provides a 10% incentive on incremental sales for a period of five years.
2.It covers segments such as cancer-care/radiotherapy devices and implants including implantable electronic devices.
3.It was approved in 2020 with a total financial outlay of ₹3,420 crore.
How many of the above statements are correct?
Consider the following statements regarding the PLI Scheme for Bulk Drugs:
1.It targets domestic manufacturing of 41 identified critical APIs, KSMs and Drug Intermediates.
2.It is implemented by the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers.
3.It has enabled domestic production of fermentation-based products such as Penicillin-G and Clavulanic Acid.
Which of the statements given above is/are correct?
The PLI Scheme for Pharmaceuticals, PLI Scheme for Bulk Drugs and PLI Scheme for Medical Devices are all implemented by which of the following?
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