Production linked incentive scheme (PLIS)

Rs. 10,000 crore incentive scheme for pharma APIs companies in India

Government of India will provide financial assistance of Rs. 10,000 crore to pharmaceutical companies in India under newly announced Production linked incentive scheme (PLIS). All those pharmaceutical companies which manufacturers drag ingredients which are imported from china are beneficiaries of the scheme. There are total 53 drag ingredients which are imported from China.

This scheme is for domestic drug industry which imports drags ingredients from China. With this scheme they will become independent for production of drags. APIs/ingredients approved by the Cabinet to manufacture 53 important medicine like anti- TB drugs, steroids, vitamins etc. Government of India is planning to establish two bulk drag parks and one intermediate park under the scheme.

Scheme:Production linked incentive schemes (PLIS)
Benefits: To become independent in production of medicine
Beneficiaries:India pharmaceutical API companies
Total budget:Rs. 720 crore
Lunched By: Government of India
Lunched Date: June 2020


  • To become independent in production of medicine
  • To manufacture raw ingredients which are used in manufacturing of drags
  • Increasing production of medicine in bulk
  • Generate employment opportunities
  • To reduce dependency to import the raw material for drag manufacture
  • India can become exporter to supply drags in bulk


  • The scheme is available only for domestic consumption
  • Scheme is applicable for local pharma API companies
  • Scheme is applicable across the India

Scheme’s yearly budget is Rs 720 crore for high-priority fermentation products such as penicillin G (important for production of antibiotics), amino cephalosporanic acid 7-ACA (used in production of antimicrobial drugs), clavulanic acid (used to treat bacterial infections), and erythromycin thiocynate (antiinfectives). India is know for pharmaceuticals exports in the world but India depends on china for some raw ingredients. With this scheme India can become independent for raw material. Technical committee formed by the pharmaceuticals department (DoP) has proposed the scheme. Government of India will be provided production cost with in 60 days of the claim. Production of drugs will be in bulk and less than or equal to import price of APIs.


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