The Department of Pharmaceuticals has expanded support for domestic drug manufacturing through the Revised Pharmaceutical Technology Upgradation Assistance Scheme (RPTUAS) and two Production Linked Incentive (PLI) schemes. These initiatives aim to improve quality compliance, strengthen supply chains, and boost India’s self-reliance in medicines and active pharmaceutical ingredients.
Revised Pharmaceutical Technology Upgradation Assistance Scheme
RPTUAS was launched in March 2024 to help existing pharmaceutical units upgrade technology and meet Revised Schedule M and World Health Organization-Good Manufacturing Practices (WHO-GMP) standards. The scheme has a financial outlay of ₹300.10 crore for FY 2024-25 to FY 2025-26. Pharmaceutical units are eligible for incentives ranging from 10% to 20% of investment, subject to a maximum of ₹2 crore. The rate depends on average turnover in the previous three years:
- ₹1 crore to ₹50 crore – 20%
- ₹50 crore to ₹250 crore – 15%
- ₹250 crore to ₹500 crore – 10%
Sanctions and Disbursement Under RPTUAS
So far, grant-in-aid has been sanctioned to 255 pharmaceutical companies for a total of ₹248.20 crore. This includes five units in Tamil Nadu with grant-in-aid of ₹5.92 crore. Release of financial assistance is linked to certification by the concerned drug regulatory authority confirming compliance with revised Schedule M and WHO-GMP norms. As on 31 January 2026, the Scheme Steering Committee had approved disbursement of ₹18.25 crore to 19 pharmaceutical companies.
PLI Scheme for Bulk Drugs
The PLI Scheme for promotion of domestic manufacturing of critical KSMs, DIs and APIs has a budgetary outlay of ₹6,940 crore. It seeks to reduce dependence on single-source imports and prevent supply disruptions of critical active pharmaceutical ingredients. The scheme provides incentives on sales of 41 identified KSMs/DIs/APIs manufactured through greenfield projects. A total of 48 projects have been approved for manufacturing 33 bulk drugs.
PLI Scheme for Pharmaceuticals
The PLI Scheme for Pharmaceuticals has a budgetary outlay of ₹15,000 crore. It is designed to expand manufacturing capacity, increase investment, and promote high-value pharmaceutical products. The scheme incentivises production of biopharmaceuticals, complex generics, patented and near-patent-expiry drugs, auto-immune medicines, anti-cancer drugs, and other KSMs/DIs/APIs not covered under the bulk drugs scheme. Under this scheme, 55 applicants have been approved for manufacturing pharmaceuticals and in-vitro medical devices through greenfield and brownfield projects.
Last Modified: April 27, 2026