Production Linked Incentive (PLI) Scheme for Pharmaceuticals
Registered pharmaceutical manufacturers in India can earn financial incentives of 5–10% on incremental sales of eligible pharmaceutical products over six years (FY2022–28), under a ₹15,000 crore scheme aimed at boosting domestic pharma manufacturing. The scheme is open to companies of all sizes — from large enterprises to MSMEs — with tiered investment commitments. Apply online through the PLI Pharma portal managed by SIDBI.
About This Scheme
Registered pharmaceutical manufacturers in India can earn financial incentives of 5–10% on incremental sales of eligible pharmaceutical products over six years (FY2022–28), under a ₹15,000 crore scheme aimed at boosting domestic pharma manufacturing. The scheme is open to companies of all sizes — from large enterprises to MSMEs — with tiered investment commitments. Apply online through the PLI Pharma portal managed by SIDBI.
Full official description
The scheme "Production Linked Incentive (PLI) Scheme for Pharmaceuticals" was launched by the Ministry of Chemicals and Fertilizers, Department of Pharmaceuticals. The scheme aims to enhance India’s manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high-value goods in the pharmaceutical sector. The scheme provides financial incentives on the incremental sales (over Base Year) of pharmaceutical goods and in-vitro diagnostic medical devices to selected applicants based on pre-defined selection criteria. The scheme is implemented by the Small Industries Development Bank of India. The applications for this scheme are accepted online through the dedicated Project Management Agency portal.
Benefits
- Incentive rate: 10% on incremental sales (Category 1 & 2 products) for first 4 years, tapering to 8% and 6%
- Incentive rate: 5% (Category 3 products) for first 4 years, tapering to 4% and 3%
- Maximum incentive per applicant: ₹1,000 crore (Group A), ₹250 crore (Group B), ₹50 crore (Group C)
- Total scheme outlay: ₹15,000 crore across all applicants
- 75% of approved claim released immediately; 25% after final audited accounts
Who Can Apply (Eligibility)
- Must be a pharmaceutical manufacturer registered in India
- Must manufacture products in one of three eligible product categories
- Cannot claim the same benefit under the PLI Bulk Drugs scheme
- Group A: Global manufacturing revenue ≥ ₹5,000 crore (FY2019-20); minimum 5-year investment of ₹1,000 crore
- Group B: Revenue ₹500–5,000 crore; minimum investment ₹250 crore over 5 years
- Group C: Revenue < ₹500 crore; minimum investment ₹50 crore over 5 years
- Group C (MSME): MSME within Group C; minimum turnover ₹50 lakh in first year (FY2022-23)
- Must achieve 7% annual sales growth from FY2023-24 onwards to continue claiming incentives
How to Apply
The scheme is implemented through a Project Management Agency, which is the Small Industries Development Bank of India. Applicants must apply online through the designated portal.
Step 1: Access the official online portal at https://pli-pharma.udyamimitra.in.
Step 2: Register on the portal and fill out the application form with all required details regarding Global Manufacturing Revenue, investment commitments, and product categories.
Step 3: Submit the non-refundable application fee as prescribed in the guidelines.
Step 4: The Project Management Agency will process the applications and select applicants based on the ranking methodology within 90 days of the application window closure.
Step 5: Receive the approval letter from the Project Management Agency if selected. Step 6: Submit a Bank Guarantee of the prescribed amount and an Undertaking in favor of the Department of Pharmaceuticals within two weeks of the issuance of the approval letter.
Step 7: Submit claims for incentive disbursement annually through the online portal along with supporting documents within one month of the financial year's closure.
Frequently Asked Questions
If an applicant is considering applying for the incentive program based on their Global Manufacturing Revenue, what is the specific revenue threshold required to be categorized under Group A?
Applicants must have a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices of ₹50,00,00,00,000/- or more in the Financial Year 2019-20 to qualify for this category.
Which specific financial year serves as the reference point for calculating the incremental sales of eligible products and determining the pre-qualification eligibility criteria for applicants?
The Financial Year 2019-20 is designated as the base year for the computation of incremental sales as well as for establishing the pre-qualification criteria for all applicants.
Can the capital expenditure incurred by the company towards the acquisition of land for setting up the manufacturing unit be considered as part of the eligible investment?
No, any investment made towards the acquisition of land required for the project or unit is explicitly excluded from the calculation of eligible investment under this initiative.
What is the mandatory sales growth percentage that applicants must strictly achieve in subsequent years to ensure they continue receiving the financial incentives?
For the Financial Year 2023-24 and onwards, the applicant is required to achieve a growth of 7% in sales over the sales of the previous financial year to claim incentives.
What is the specific timeline for submitting the required bank guarantee after an applicant receives the official approval letter from the Project Management Agency?
The selected applicant is required to submit the bank guarantee of the prescribed amount along with an undertaking within two weeks from the date of issuance of the approval letter.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Audited Financial Statements
- Cost Accountant Certificate (For Production Cost Certification)
- Bank Guarantee (Upon Selection)
- Undertaking (Upon Selection)
- Product Registration Documents
- Self-Certified Quarterly Review Report