Push for API manufacturing in India

48 projects approved under production linked incentive scheme

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Push for API manufacturing in India

The Union ministry of chemicals and fertilizers has approved 48 projects under the production linked incentive scheme for the promotion of domestic manufacturing of critical key starting materials (KSMs), drug intermediates (DIs) and active pharmaceutical ingredients (APIs) in India

KSMs are the essential starting points for the synthesis of APIs. They are the critical foundation upon which the entire pharmaceutical manufacturing process is built, playing a vital role in ensuring the quality, safety, and efficacy of the final drug product.

The scheme aims to avoid disruption in the supply of critical APIs used to make critical drugs for which there are no alternatives by reducing supply disruption risk due to excessive dependence on single source.

Products notified and approved under the scheme prior to commencement of production under the PLI scheme were primarily imported. As of December 2024, against an investment commitment of ₹3,938.5 crore over a period of six years, an investment of ₹4,254 crore had already been made under the scheme. 

As a result of the scheme, cumulative sales of ₹1,556 crore have been reported over the period from the beginning of the scheme till December 2024, including exports of ₹412 crore, thereby avoiding imports worth ₹1,144 crore and creating domestic manufacturing capacity for 25 identified KSMs/DIs/APIs, the government said.

A number of measures were taken to enhance awareness and encourage participation in the scheme at the time of its launch.

These include conducting webinars and stakeholder consultation meetings with industry associations and potential applicants; issuing press releases, detailed guidelines, clarifications in the form of frequently asked questions (FAQs) and answers thereto and scheme notifications on official websites; regular outreach through social media campaigns; dedicated helpdesk support and query resolution mechanisms through the scheme portal, etc.

Full list of beneficiaries here

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