India’s pharmaceutical and medical devices sector witnessed robust foreign direct investment (FDI) activity in FY 2024–25, surpassing ₹19,134 crore in total inflows. The increase is largely attributed to the government’s Production Linked Incentive (PLI) scheme, which continues to attract capital into bulk drug manufacturing, reduce import dependency, and scale exports.

Key Highlights

FDI Surpasses ₹19,134 Crore in FY 2024–25

• ₹11,888 crore was received from April to December 2024.

• An additional ₹7,246.4 crore was approved across 13 brownfield FDI proposals, taking the total to ₹19,134.4 crore.

PLI Scheme Realises Higher-than-Targeted Investments

• While the target was ₹3,938.57 crore, actual realised investment touched ₹4,253.92 crore by December 2024.

• 34 of the 48 approved bulk drug projects have already been commissioned.

Notable Projects Under the Bulk Drug PLI Scheme

• Penicillin G (Kakinada, Andhra Pradesh): ₹1,910 crore investment; import substitution worth ₹2,700 crore per year.

• Clavulanic Acid (Nalagarh, Himachal Pradesh): ₹450 crore investment; ₹600 crore expected in annual import substitution.

PLI Scheme for Pharmaceuticals and Medical Devices Making Impact

• Pharma PLI scheme has a ₹15,000 crore outlay for FY 2022–23 to FY 2027–28, incentivising 55 firms.

• Targets include complex generics, biopharmaceuticals, anti-cancer drugs, and autoimmune treatments.

• Medical device PLI scheme supports high-end radiology, imaging, cancer care, and implants, with ₹3,420 crore outlay.

Statements from Officials or Leaders
According to the official statement, “The government’s PLI scheme has turned out to be a transformative initiative for boosting domestic manufacturing, attracting investments, reducing reliance on imports and increasing exports.”With FDI inflows accelerating and major pharmaceutical manufacturing projects underway, India is solidifying its global position as a cost-effective, high-quality medicine producer. The continued rollout of the PLI schemes in both pharmaceuticals and medical devices is set to elevate India’s self-reliance and global competitiveness in healthcare manufacturing.