About this business scheme
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.
The scheme "Production Linked Incentive (PLI) Scheme for Pharmaceuticals" was launched by the Ministry of Chemicals and Fertilizers, Department of Pharmaceuticals. The scheme aims to enhance India’s manufacturing capabilities by increasing investment and production in the sector and contributing to product diversification to high-value goods in the pharmaceutical sector. 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 scheme is implemented by the Small Industries Development Bank of India. The applications for this scheme are accepted online through the dedicated Project Management Agency portal.
Benefits at a glance
| Scheme name | Production Linked Incentive (PLI) Scheme for Pharmaceuticals (PLI-PHARMA) |
|---|---|
| Launched by | Ministry Of Chemicals And Fertilizers |
| Benefit type | Cash (money paid to your bank account) |
| Category | Business |
| Level / State | Central · All India |
| Official portal | pli-pharma.udyamimitra.in (link at the end of this page) |
Key facts
| Scheme type | Central Sector Scheme |
|---|---|
| Scheme for | Individual |
| Application mode | Online |
| Last date | Ongoing (no last date notified) |
| DBT (direct bank transfer) | No |
| Age | 18 to 60 years |
Who can apply (quick check)
- 👤All genders
- 🎂Age 18 to 60 years
- 📝Online
Quick check from official data. Full conditions are in the Eligibility section.
What you receive
- The scheme has a total financial outlay of Rs. 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 Rs. 1,10,00,00,00,000/- for Group A, Rs. 22,50,00,00,000/- for Group B, and Rs. 17,50,00,00,000/- for Group C.
- The maximum incentive per applicant is capped at Rs. 10,00,00,00,000/- for Group A, Rs. 2,50,00,00,000/- for Group B, and Rs. 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 qualifies
Common Eligibility
- 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.
Group A Applicants
- The applicant must have a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices greater than or equal to Rs. 50,00,00,00,000/- (Rs. 5,000 crores) in the Financial Year 2019-20.
- The applicant must achieve a minimum cumulative investment of Rs. 10,00,00,00,000/- (Rs. 1,000 crores) over a period of 5 years.
- The applicant must achieve a minimum turnover of eligible products of Rs. 50,00,00,000/- (Rs. 50 crores) in the first year (Financial Year 2022-23).
Group B Applicants
- The applicant must have a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices between Rs. 5,00,00,00,000/- (Rs. 500 crores) and Rs. 50,00,00,00,000/- (Rs. 5,000 crores) in the Financial Year 2019-20.
- The applicant must achieve a minimum cumulative investment of Rs. 2,50,00,00,000/- (Rs. 250 crores) over a period of 5 years.
- The applicant must achieve a minimum turnover of eligible products of Rs. 10,00,00,000/- (Rs. 10 crores) in the first year (Financial Year 2022-23).
Group C Applicants
- The applicant must have a Global Manufacturing Revenue of pharmaceutical goods or in-vitro Diagnostic Medical Devices less than Rs. 5,00,00,00,000/- (Rs. 500 crores) in the Financial Year 2019-20.
- The applicant must achieve a minimum cumulative investment of Rs. 50,00,00,000/- (Rs. 50 crores) over a period of 5 years.
- The applicant must achieve a minimum turnover of eligible products of Rs. 1,00,00,000/- (Rs. 1 crore) in the first year (Financial Year 2022-23).
Group C (MSME) Applicants
- 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 Rs. 50,00,000/- (Rs. 50 lakhs) in the first year (Financial Year 2022-23).
Continuation Criteria
- 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.
Who is not eligible
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Registration walkthrough
Online
The scheme is implemented through a Project Management Agency, which is the Small Industries Development Bank of India. Applicants must apply online through the designated portal.
Step 1: Access the official online portal at https://pli-pharma.udyamimitra.in.
Step 2: Register on the portal and fill out the application form with all required details regarding Global Manufacturing Revenue, investment commitments, and product categories.
Step 3: Submit the non-refundable application fee as prescribed in the guidelines.
Step 4: The Project Management Agency will process the applications and select applicants based on the ranking methodology within 90 days of the application window closure.
Step 5: Receive the approval letter from the Project Management Agency if selected. Step 6: Submit a Bank Guarantee of the prescribed amount and an Undertaking in favor of the Department of Pharmaceuticals within two weeks of the issuance of the approval letter.
Step 7: Submit claims for incentive disbursement annually through the online portal along with supporting documents within one month of the financial year's closure.
Frequently asked 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 Rs. 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.
Submit your application yourself on the official portal; it costs nothing. Treat anyone demanding money to "get you approved" as a scam.
- Scheme Guidelines [Department Of Pharmaceuticals] pharma-dept.gov.in
- PIB Press Release [19th August 2025] www.pib.gov.in
tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.
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