Production Linked Incentive (PLI) Scheme for Pharmaceuticals
1. Objective:
The PLI scheme for pharmaceuticals aims to boost domestic manufacturing, reduce import dependence, and enhance global competitiveness in high-value pharmaceutical products.
2. Eligibility Criteria:
- Companies registered in India engaged in pharmaceutical manufacturing.
- Categorized into three groups based on Global Manufacturing Revenue (GMR):
- Group A: GMR of ₹5,000 crore or more.
- Group B: GMR between ₹500 crore and ₹5,000 crore.
- Group C: GMR below ₹500 crore (including MSMEs).
- Investment commitments based on group classification:
- Group A: Minimum ₹1,000 crore over five years.
- Group B: Minimum ₹250 crore over five years.
- Group C: Minimum ₹50 crore over five years.
- Minimum annual sales growth of 7% required for incentive eligibility.
3. Operative Period:
- The scheme is operational from FY 2022-23 to FY 2027-28.
- Incentives will be provided based on performance during this period.
4. Incentives:
- Categories 1 & 2 Products:
- 10% for FY 2022-23 to 2025-26.
- 8% for FY 2026-27.
- 6% for FY 2027-28.
- Category 3 Products:
- 5% for FY 2022-23 to 2025-26.
- 4% for FY 2026-27.
- 3% for FY 2027-28.
5. Important Notes:
- Investments made post April 1, 2022, qualify for incentives.
- Companies must comply with environmental and quality standards.
- Beneficiaries cannot avail of incentives from other overlapping schemes.
- The scheme aims to enhance India’s role in the global pharmaceutical supply chain.