Working towards the aim to reduce India’s historical dependence on imported active pharmaceutical ingredients (APIs), the Ministry of Chemicals and Fertilisers of India has highlighted substantial progress across its flagship API and bulk drug manufacturing initiatives. A combination of targeted infrastructure support and production-linked incentives is reshaping the domestic pharmaceutical manufacturing landscape.

Bulk Drug Parks Near Key Development Milestones

While APIs are not covered under the Department of Pharmaceuticals’ PLI frameworks for formulations, the government is driving API infrastructure development through the Scheme for Promotion of Bulk Drug Parks, which has an outlay of ₹3,000 crore.

Under this scheme, three mega bulk drug parks have already been approved in:

• Andhra Pradesh
• Gujarat
• Himachal Pradesh

These parks—collectively valued at over ₹6,306 crore—are expected to offer world-class common facilities including utilities, effluent treatment systems, steam, solid waste management, and warehousing, all at subsidised rates. Each park receives ₹1,000 crore in central assistance, while states are supplementing this with incentives such as:

• capital investment subsidies
• interest subvention
• SGST reimbursement
• stamp duty and registration fee waivers

To accelerate domestic capability building, manufacturers producing products prioritised under the PLI Scheme for Bulk Drugs will receive first preference in land allocation within these parks.

PLI Scheme for Bulk Drugs: Capacity Creation Gains Real Traction

The government reported significant progress under the ₹6,940 crore PLI Scheme for Bulk Drugs, which is designed to address supply chain vulnerabilities for critical KSMs, drug intermediates, and APIs.

Key achievements as of September 2025 include:

• ₹4,763 crore invested, surpassing the pace required for the six-year timeline.
• 26 critical KSMs/DIs/APIs now being manufactured domestically—previously imported almost entirely.
• ₹2,315 crore in cumulative sales, including ₹508 crore in exports.
• ₹1,807 crore in avoided imports, reflecting improved resilience in the pharma supply chain.

The scheme continues until FY 2029–30, giving companies a long runway to scale production.

PLI Scheme for Pharmaceuticals: Investments Exceed Commitments

The broader ₹15,000 crore PLI Scheme for Pharmaceuticals, aimed at boosting high-value drug manufacturing, has far outperformed expectations.

As of September 2025:

• ₹40,890 crore has already been invested, more than double the committed ₹17,275 crore target.
• 726 APIs/KSMs/DIs are now being produced under the scheme.
• Notably, 191 of these are being manufactured in India for the first time.
• Domestic sales from the scheme have reached ₹26,123 crore, significantly strengthening India’s pharma self-reliance strategy.

This PLI tranche remains operational until FY 2028–29.

Also read: From $22 Billion to $90 Billion: US Biosimilars Surge Fuels Strategic Pivot in Indian Pharma

A Strong Foundation for API Sovereignty

The government’s latest update reinforces that India’s long-term goal of reducing API import dependence—particularly on single-country sources—is translating into measurable outcomes. With bulk drug parks nearing completion, large-scale private investments materialising, and hundreds of APIs now manufactured domestically for the first time, the country’s pharmaceutical supply chain is entering a more resilient phase.

These initiatives are expected not only to fortify India’s position as a global pharma hub but also to create an enabling environment for next-generation biopharma innovation and export-oriented manufacturing.

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