The Government of India has released a major update in June 2025 regarding its ambitious Bulk Drug Park Scheme, a cornerstone of India’s pharmaceutical self-reliance strategy. Under this scheme, the government has sanctioned fresh subsidy allocations to three key states to accelerate the production of Active Pharmaceutical Ingredients (APIs), Key Starting Materials (KSMs), and intermediates. This move is in line with the vision of strengthening domestic manufacturing capabilities and reducing India’s dependency on imports, particularly from China.
As of June 2025, Himachal Pradesh, Tamil Nadu, and Andhra Pradesh have received a revised financial assistance package under the Bulk Drug Park Scheme, with an aim to make these states production hubs for critical bulk drugs. The Department of Pharmaceuticals (DoP) has confirmed that all necessary infrastructure and environmental clearances are now in place, with full-scale operations expected to begin by Q4 of 2025.
This article explores the detailed subsidy structure, benefits to the pharmaceutical sector, and the specific roles assigned to each state.
What is the Bulk Drug Park Scheme?
Launched in 2020 and revised in 2023, the Bulk Drug Park Scheme was initiated to promote the creation of world-class infrastructure for bulk drug manufacturing. It provides capital assistance to states for setting up Bulk Drug Parks with common facilities like solvent recovery, testing labs, effluent treatment plants, and power & steam supply systems.
The core objectives of the scheme include:
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Reducing import dependency for APIs and intermediates
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Ensuring consistent supply of quality raw materials
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Boosting competitiveness of Indian pharma in global markets
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Generating employment and supporting MSMEs in the pharma sector
In June 2025, the scheme entered a critical phase with the disbursal of subsidies, accelerating development across selected states.
June 2025 Subsidy Update: State-Wise Allocation
The government has allocated ₹3,000 crore under the Bulk Drug Park Scheme, with state-wise subsidy distribution confirmed as follows:
| State | Subsidy Allocated (₹ Cr) | Focus Area |
|---|---|---|
| Himachal Pradesh | ₹1,000 | APIs for antibiotics, antivirals |
| Tamil Nadu | ₹1,000 | Biotech intermediates, fermentation units |
| Andhra Pradesh | ₹1,000 | Hormonal drugs, oncology APIs |
Each state has committed to providing plug-and-play industrial land, uninterrupted utilities, and single-window clearances to attract investors and manufacturers under the Bulk Drug Park Scheme.
The new facilities will cover more than 1,000 acres collectively and are expected to generate over 35,000 direct and indirect jobs.
Key Benefits for the Pharmaceutical Industry
The June 2025 developments under the Bulk Drug Park Scheme are set to deliver substantial benefits to pharmaceutical companies and allied industries:
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Cost Efficiency: Common infrastructure lowers manufacturing costs
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Reduced Dependency: Less reliance on Chinese imports for critical APIs
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Supply Chain Stability: Better control over inputs and timelines
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Quality Assurance: State-of-the-art labs and regulatory support
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Ease of Doing Business: Simplified approvals and built-in logistics support
The bulk drug ecosystem supported by this scheme will allow Indian firms to compete globally with better margins and faster production cycles.
Alignment with ‘Make in India’ and Export Goals
The Bulk Drug Park Scheme is aligned with the larger national vision of Atmanirbhar Bharat and the Pharma Vision 2047. By developing end-to-end drug production capabilities within India, the government aims to:
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Achieve API export growth of over 20% year-on-year
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Enhance the share of bulk drugs in total pharma exports
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Attract FDI into the Indian pharmaceutical manufacturing space
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Reduce the trade deficit caused by pharma imports
These parks are expected to position India not just as a global supplier of finished medicines but also of high-quality raw ingredients for the world market.
FAQs
Which states are currently approved under the Bulk Drug Park Scheme?
Himachal Pradesh, Tamil Nadu, and Andhra Pradesh have received approvals and funding in the June 2025 phase.
How much financial assistance has been given in total?
A total of ₹3,000 crore has been allocated equally among the three selected states under the Bulk Drug Park Scheme.
What type of infrastructure will be included in these parks?
Each park will include facilities like testing labs, solvent recovery units, effluent treatment systems, and uninterrupted utility services.
Will small-scale manufacturers also benefit from this scheme?
Yes. The parks will offer shared infrastructure and reduced costs, making it easier for MSMEs to enter and thrive in the bulk drug sector.
When will the parks become operational?
According to the June 2025 update, full operations are expected to begin by Q4 2025, with construction and setup in final stages.
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