FDI in India’s pharma sector to cross Rs 19,134 crore during 2024-25
DELHI Delhi: India’s pharmaceuticals and medical devices sector witnessed FDI inflows of Rs 11,888 crore from April to December in the financial year ending March 31, 2025, besides 13 FDI proposals worth Rs 7,246.40 crore approved for brownfield projects during 2024-25, taking the total FDI to Rs 19,134.4 crore, data compiled by the Department of Pharmaceuticals showed.
The government’s production-linked incentive (PLI) scheme has become a transformational initiative to boost domestic manufacturing, attract investments, reduce dependence on imports and increase exports, according to an official statement released on Sunday.
One of the significant achievements under the PLI scheme is exceeding the targeted investments. The initial commitment was Rs 3,938.57 crore, but the actual investment received has already reached Rs 4,253.92 crore (by December 2024), the statement said.
Under the PLI scheme for bulk drugs, a total of 48 projects have been selected, out of which 34 projects for 25 bulk drugs have been commissioned by December 2024.
Notable projects under the PLI scheme for bulk drugs include the Penicillin G project (Kakinada, Andhra Pradesh), with an investment of Rs 1,910 crore and an expected import substitution of Rs 2,700 crore per annum.
The Clavulanic Acid project at Nalagarh in Himachal Pradesh is also being implemented under the scheme with an investment of Rs 450 crore and is expected to result in import substitution of Rs 600 crore per annum.
The PLI scheme for pharmaceuticals was approved by the Union Cabinet on February 24, 2021, with a financial outlay of Rs 15,000 crore and production period from FY 2022-2023 to FY 2027-28, and provides financial incentives for a period of six years to 55 selected applicants for manufacturing identified products under three categories. Under the scheme, high-value pharmaceutical products such as patented/off-patent drugs, biopharmaceuticals, complex generics, anti-cancer drugs and auto-immune drugs are manufactured.
