India’s Pharmaceutical Sector: A Strategic Push for Self-Reliance

In a significant move to reduce its dependence on imports and strengthen domestic manufacturing, the Government of India is accelerating its efforts to make the country a global pharmaceutical powerhouse. Driven by a series of high-impact policies, the nation’s pharma sector is reporting remarkable progress, fueled by substantial investments, groundbreaking research, and a strategic focus on high-value products.

Fueling Innovation and Production

The foundation of this policy push lies in two key Production Linked Incentive (PLI) schemes and a dedicated research initiative, which are collectively transforming India’s pharmaceutical ecosystem.

Research & Development: At the core is the Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) scheme, a Rs. 5,000 crore initiative. Seven Centres of Excellence (CoEs) have been established at top National Institutes of Pharmaceutical Education and Research (NIPERs), fostering cutting-edge research. So far, 106 projects have been approved, with Rs. 700 crore already allocated to build state-of-the-art research infrastructure.
Bulk Drugs and APIs: The PLI Scheme for Bulk Drugs is a major success story in reducing import reliance for critical raw materials. With a budget of Rs. 6,940 crore, the scheme has approved 48 projects for 33 essential molecules. As of June 2025, the cumulative investment has already surpassed its committed target, reaching Rs. 4,709 crore. This has enabled the creation of domestic capacity for 26 critical APIs, with a high domestic value addition of 70-90%. The scheme has generated cumulative sales of Rs. 1,962 crore, effectively offsetting imports worth Rs. 1,483 crore.
High-Value Products: The PLI Scheme for Pharmaceuticals, a Rs. 15,000 crore program, is helping India pivot toward more complex and high-value products like biopharmaceuticals, biosimilars, and complex generics. The investment under this scheme has been staggering, surging to Rs. 38,543 crore—more than double the initial committed amount. This has led to the establishment of 28 new greenfield manufacturing facilities and boosted exports to Rs. 1,86,710 crore, showcasing India’s growing global competitiveness.

Global Collaboration and Future Outlook

Beyond domestic manufacturing, India is also making strides in integrating its traditional medicine systems with global standards. A landmark agreement with the World Health Organization (WHO) will lead to the development of a module for an International Classification of Health Interventions for AYUSH systems. This collaboration, centered at the WHO Global Centre for Traditional Medicine in Jamnagar, will enable standardized coding and global comparability of data on traditional treatments.

These multi-pronged initiatives are not just about reducing imports; they are about building a resilient and innovative pharmaceutical ecosystem. With substantial investments, booming exports, and a strong focus on both modern and traditional medicine, India’s pharma sector is well on its way to achieving greater self-reliance and solidifying its position as a global leader.