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Production Linked Incentive (PLI) Scheme for Pharmaceuticals

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 applicant must be a manufacturer of pharmaceutical goods.

Authority

Central

Region

None

Status

Verified 2026

Updated

March 2026

What you get

- The scheme has a total financial outlay of ₹1,50,00,00,00,000/-. | - The incentive is provided on the net incremental sales of eligible products over a period of 6 years (Financial Year 2022-23 to Financial Year 2027-28). | - The rate of incentive for Category 1 and Category 2 products is 10% for the first four years (Financial Year 2022-23 to 2025-26), 8% for the fifth year (Financial Year 2026-27), and 6% for the sixth year (Financial Year 2027-28). | - The rate of incentive for Category 3 products is 5% for the first four years (Financial Year 2022-23 to 2025-26), 4% for the fifth year (Financial Year 2026-27), and 3% for the sixth year (Financial Year 2027-28). | - The incentive allocation ceiling is ₹1,10,00,00,00,000/- for Group A, ₹22,50,00,00,000/- for Group B, and ₹17,50,00,00,000/- for Group C. | - The maximum incentive per applicant is capped at ₹10,00,00,00,000/- for Group A, ₹2,50,00,00,000/- for Group B, and ₹50,00,00,000/- for Group C. | *Applicants must submit a claim for disbursement of incentive online on an annual basis within one month of the closure of the financial year. | *75% of the claim amount is released immediately upon order, and the remaining 25% is released after the submission of final audited accounts. | *Selected applicants must furnish a self-certified quarterly review report within 30 days from the end of each quarter.

Who can apply

The applicant must be a manufacturer of pharmaceutical goods registered in India.; The applicant must be engaged in the manufacturing of eligible pharmaceutical products covered under the three defined categories.; The applicant must not claim incentives for the same product under the Production Linked Incentive Scheme for Bulk Drugs or any other Production Linked Incentive Scheme.; The applicant must have a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices greater than or equal to ₹50,00,00,00,000/- (₹5,000 crores) in the Financial Year 2019-20.; The applicant must achieve a minimum cumulative investment of ₹10,00,00,00,000/- (₹1,000 crores) over a period of 5 years.; The applicant must achieve a minimum turnover of eligible products of ₹50,00,00,000/- (₹50 crores) in the first year (Financial Year 2022-23).; The applicant must have a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices between ₹5,00,00,00,000/- (₹500 crores) and ₹50,00,00,00,000/- (₹5,000 crores) in the Financial Year 2019-20.; The applicant must achieve a minimum cumulative investment of ₹2,50,00,00,000/- (₹250 crores) over a period of 5 years.; The applicant must achieve a minimum turnover of eligible products of ₹10,00,00,000/- (₹10 crores) in the first year (Financial Year 2022-23).; The applicant must have a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices less than ₹5,00,00,00,000/- (₹500 crores) in the Financial Year 2019-20.; The applicant must achieve a minimum cumulative investment of ₹50,00,00,000/- (₹50 crores) over a period of 5 years.; The applicant must achieve a minimum turnover of eligible products of ₹1,00,00,000/- (₹1 crore) in the first year (Financial Year 2022-23).; The applicant must fall under the Micro, Small and Medium Enterprises (MSME) category within Group C.; The applicant must achieve the Committed Investment (total eligible investment committed by the applicant) over a period of 5 years.; The applicant must achieve a minimum turnover of eligible products of ₹50,00,000/- (₹50 lakhs) in the first year (Financial Year 2022-23).; The applicant must achieve a 7% growth in sales over the previous Financial Year for subsequent years (Financial Year 2023-24 onwards) to claim incentives.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common 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.