The Government of India has updated the Bulk Drug Production Linked Incentive Scheme 2025, providing revised subsidies and guidelines for the manufacturing of critical Active Pharmaceutical Ingredients (APIs) within the country. This initiative supports the “Atmanirbhar Bharat” mission by reducing import dependency and boosting local pharmaceutical manufacturing.
With the 2025 update, the scheme offers more structured incentives, expands the list of eligible APIs, and encourages MSMEs and larger pharmaceutical manufacturers to participate actively. The Bulk Drug Production Linked Incentive Scheme 2025 plays a vital role in ensuring that India remains self-sufficient in the production of essential bulk drugs for both domestic consumption and global supply.
Key Features of the 2025 PLI Scheme for Bulk Drugs
Here are the major highlights of the Bulk Drug Production Linked Incentive Scheme 2025:
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20+ additional APIs included in the revised list
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Subsidy of up to 20% based on sales performance and plant capacity
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Incentives applicable for greenfield and brownfield projects
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Higher support for fermentation-based drugs, which India heavily imports
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Faster approval timelines for units in dedicated pharma parks
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Encouragement of environmentally compliant manufacturing units
These changes ensure faster execution of projects and higher participation from Indian companies to develop critical healthcare infrastructure.
Newly Covered API Categories in 2025
The updated Bulk Drug Production Linked Incentive Scheme 2025 covers the following major drug components:
| API Category | Newly Added Drugs (2025) |
|---|---|
| Antibiotics | Erythromycin, Azithromycin |
| Cardiovascular | Atorvastatin, Losartan |
| Diabetes Care | Metformin, Glimepiride |
| Pain Management | Diclofenac, Paracetamol |
| Hormonal APIs | Levothyroxine, Estradiol |
| Fermentation-Based Drugs | Rifampicin, Streptomycin |
| Oncology | Methotrexate, Cyclophosphamide |
These bulk drugs are crucial for manufacturing widely prescribed medicines and ensuring continuous supply to Indian hospitals and chemists.
Subsidy Structure and Eligibility
Under the Bulk Drug Production Linked Incentive Scheme 2025, eligible manufacturers receive graded incentives based on sales thresholds and type of API produced.
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Fermentation-based APIs: Up to 20% incentive for 6 years
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Chemical synthesis APIs: Up to 10% incentive for 5 years
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Minimum investment required: ₹20 crore to ₹400 crore depending on project scale
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Fast-track clearances through National Single Window System
Eligible manufacturers must commit to production timelines and environmental compliance. Startups, MSMEs, and joint ventures are all encouraged to apply.
Why the 2025 Update Matters for India’s Pharma Sector
The revised Bulk Drug Production Linked Incentive Scheme 2025 addresses crucial gaps in the Indian pharmaceutical value chain. Key advantages include:
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Reduction in API imports, especially from China
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Strengthening of domestic R&D and production units
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Improvement in drug security and availability
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Job creation across pharma clusters in India
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Boost to India’s role as a global drug supplier
By supporting indigenous manufacturing, this scheme ensures India can respond swiftly to public health needs while reducing foreign dependency.
How to Apply for the PLI Scheme in 2025
Interested companies must submit an Expression of Interest (EOI) and project proposal through the official portal of the Department of Pharmaceuticals. Required documents include:
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Detailed business plan
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Investment breakdown
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Pollution clearance certificates
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Manufacturing site details
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API production timeline
Shortlisted applicants under the Bulk Drug Production Linked Incentive Scheme 2025 will receive approvals within 60 days of submission.
FAQs
What is the Bulk Drug Production Linked Incentive Scheme 2025?
It’s a government subsidy initiative to promote domestic manufacturing of essential APIs and reduce import dependency.
Who is eligible for the 2025 PLI scheme?
Pharmaceutical companies, MSMEs, startups, and joint ventures that meet investment and production criteria.
What kind of drugs are covered under this update?
The scheme covers APIs used in antibiotics, cardiovascular, diabetic, cancer, hormonal, and fermentation-based drugs.
How much incentive is offered under the scheme?
Up to 20% incentive for fermentation-based APIs and 10% for chemical synthesis APIs.
Where can manufacturers apply for the scheme?
Applications must be submitted through the official Department of Pharmaceuticals portal under the PLI bulk drug scheme section.