India has been UNICEF’s largest vaccine supplier for the past six to seven years, contributing 55% to 60% of total volume procured contributing 99%, 52% and 45% of the WHO demand for DPT, BCG and the measles vaccines, respectively.
India’s emergence as the “Pharmacy of the World” is not a coincidence but a well-orchestrated outcome of strategic policy reforms, industrial encouragement, and a robust regulatory environment under the Make in India initiative. Spearheaded by the visionary leadership of Prime Minister Narendra Modi, this initiative has significantly reshaped the Indian pharmaceutical and medical devices industry—propelling it toward self-reliance, innovation, and global competitiveness.
The Production Linked Incentive (PLI) Schemes, introduced under the Make in India and Atmanirbhar Bharat vision of Prime Minister Narendra Modi, have emerged as transformative policy instruments to enhance India’s manufacturing ecosystem, reduce import dependency, and project India as a globally competitive manufacturing hub. Launched in 2020 across multiple sectors, these schemes specifically designed for pharmaceuticals, medical devices, and critical drug intermediates have reinvigorated domestic industries, catalyzed foreign and domestic investment, and promoted high-value innovation.
India’s Growing Global Footprint in Pharmaceuticals
India’s pharmaceutical sector has witnessed remarkable growth, significantly expanding its global footprint in recent years. In the financial year 2023–24, India’s pharmaceutical exports soared to an impressive $25.4 billion, catering to the healthcare needs of over 200 countries across the globe. Among these, the United States stands out as the largest export destination, underlining the trust and reliability that Indian pharmaceutical products have earned in one of the most regulated and competitive markets in the world. India’s position in the global pharmaceutical landscape is equally notable, ranking third globally in terms of volume and fourteenth in terms of value. This disparity underscores India’s strength in producing high-quality, affordable generic medicines that are vital to public health systems around the world.
The country has emerged as a key supplier of affordable and life-saving medicines, accounting for approximately 20 percent of the global supply of generic drugs. Furthermore, India has become an indispensable contributor to global immunization efforts. Over the past six to seven years, India has consistently remained UNICEF’s largest vaccine supplier, fulfilling around 55 to 60 percent of its total vaccine procurement needs. In addition, India plays a critical role in meeting the World Health Organization’s global vaccine demands, contributing an overwhelming 99 percent of DPT vaccines, 52 percent of BCG vaccines, and 45 percent of measles vaccines used worldwide.
These extraordinary achievements are not coincidental but are the result of a sustained policy focus and visionary leadership under Prime Minister Narendra Modi. The Make in India initiative, championed by his government, has catalyzed a shift towards self-reliance and global competitiveness. It has empowered pharmaceutical companies with the necessary policy support, financial incentives, and regulatory facilitation to scale up their operations and embrace advanced manufacturing technologies. This strategic direction has not only bolstered domestic capabilities but has also positioned India as a trusted global healthcare partner, capable of delivering high-quality medicines and vaccines at scale, speed, and affordability.
Make in India Boost to Medical Devices Sector
The medical devices industry, a critical pillar of the healthcare ecosystem, has experienced a significant transformation and rapid growth under the progressive policy framework of the Modi government. Recognizing the sector’s pivotal role in ensuring quality healthcare delivery—from early diagnosis to advanced treatment—the government has actively encouraged domestic manufacturing, technology adoption, and foreign investments. This comprehensive support has helped shift the industry from being import-dependent to becoming increasingly self-reliant and globally competitive.
Between April and December 2024 alone, the sector attracted Foreign Direct Investment (FDI) worth ₹11,888 crore, reflecting growing international confidence in India’s meditech landscape. The Department of Pharmaceuticals, operating under the Ministry of Chemicals and Fertilizers, has played a facilitative role in reviewing and approving investment proposals that align with national priorities. As part of this effort, 13 FDI proposals amounting to ₹7,246 crore were approved in brownfield projects during the same period, reinforcing the government’s commitment to revitalizing existing facilities and upgrading them to meet global standards.
Beyond capital inflow, there has been a concerted push to strengthen indigenous capabilities in the manufacturing of high-end and critical medical equipment. Indian manufacturers, supported by schemes like the Production Linked Incentive (PLI) for medical devices, have expanded production capacities in key segments such as radiology equipment, cancer diagnostics, imaging solutions, and implantable devices. This strategic development not only enhances access to cutting-edge medical technologies within the country but also positions India as a viable alternative to traditional global suppliers.
Production Linked Incentive (PLI) Schemes: Game-Changers
The PLI Scheme for Pharmaceuticals, approved by the Union Cabinet in 2021 with a substantial financial outlay of ₹15,000 crore, is a bold initiative to incentivize domestic manufacturers to expand production of high-value pharmaceutical products. Spanning from FY 2022–23 to FY 2027–28, the scheme provides performance-linked financial incentives to 55 selected companies, chosen for their capability to produce globally competitive pharmaceutical products.
This scheme strategically focuses on three product categories, including biopharmaceuticals, complex generics, anti-cancer drugs, autoimmune medications, and repurposed drugs—areas with high export potential and clinical significance. By encouraging domestic production in these critical areas, the government aims not only to improve India’s self-reliance in pharmaceutical innovation but also to boost exports to regulated markets such as the US, EU, and Japan. The scheme further promotes the development of a robust R&D ecosystem, reduces India’s dependence on imports for high-value formulations, and enhances long-term competitiveness in the global pharma market.
PLI Scheme for Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs)
Recognizing India’s historic overdependence on imports, particularly from China, for key raw materials used in drug manufacturing, the government launched the PLI Scheme for KSMs, DIs, and APIs in 2020 with an outlay of ₹6,940 crore. This initiative, covering the period from FY 2020–21 to FY 2029–30, focuses on encouraging the domestic production of 41 essential bulk drugs, which form the backbone of India’s pharmaceutical manufacturing.
The scheme has delivered commendable results. As of December 2024, the actual investment realized under the scheme stood at ₹4,253.92 crore, surpassing the initial commitment of ₹3,938 crore—demonstrating the industry’s overwhelming response and trust in the government’s vision. A total of 34 projects have been commissioned, covering 25 critical bulk drugs, which are now being manufactured domestically.
Among the most significant projects are the Penicillin G project in Kakinada, Andhra Pradesh, with an investment of ₹1,910 crore, expected to substitute imports worth ₹2,700 crore annually, and the Clavulanic Acid project in Nalagarh, Himachal Pradesh, involving ₹450 crore of investment, expected to offset imports worth ₹600 crore per annum. These projects not only reduce India’s strategic vulnerabilities but also create a dependable domestic value chain in pharmaceuticals.
PLI Scheme for Medical Devices
The PLI Scheme for Medical Devices, launched in FY 2020-21 with a total outlay of ₹3,420 crore, addresses another critical segment of India’s healthcare sector. Until recently, India imported nearly 85% of its high-end medical equipment, posing both economic and strategic challenges. This scheme targets this imbalance by providing manufacturers with 5% incentive on incremental sales of eligible medical devices produced domestically.
The scheme covers advanced product segments such as radiology and imaging equipment, cancer care and radiotherapy devices, anesthetics and cardio-respiratory medical devices, and implants. Structured across two applicant categories, the incentive structure is designed to support both established and emerging players:
- Category A: Up to ₹121 crore per applicant over five years
- Category B: Up to ₹40 crore per applicant over five years
The scheme has already begun catalyzing the domestic production of complex and high-value devices, thereby reducing dependence on imports and creating a globally competitive meditech manufacturing ecosystem. Additionally, it strengthens ancillary industries and fosters skill development among healthcare professionals and biomedical engineers.
Promotion of Bulk Drug Parks
To further bring down manufacturing costs and fortify India’s pharmaceutical supply chains, the Government of India launched the Bulk Drug Parks Scheme in 2020 with a total financial outlay of ₹3,000 crore. This forward-looking initiative aims to create specialized industrial clusters equipped with state-of-the-art infrastructure, facilitating the large-scale production of bulk drugs, also known as Active Pharmaceutical Ingredients (APIs), which are essential components in drug formulation.
Under the scheme, three states—Gujarat, Himachal Pradesh, and Andhra Pradesh—have been approved for the establishment of bulk drug parks. Each park is eligible to receive financial assistance of up to ₹1,000 crore, with the government covering up to 70% of the project cost in general states and up to 90% in Northeastern and hilly states. This high level of support ensures that manufacturers can access shared facilities such as common effluent treatment plants, solvent recovery units, captive power plants, warehousing, and testing labs—thereby dramatically reducing production costs and improving operational efficiency.
These parks are designed not just as production zones but as innovation-driven, cost-efficient ecosystems, promoting collaborative manufacturing and economies of scale. By consolidating production in well-equipped clusters, the scheme is expected to significantly reduce India’s import dependency for critical APIs, many of which were historically sourced from countries like China. In line with the Make in India and Atmanirbhar Bharat visions, the Bulk Drug Parks will play a pivotal role in building a resilient and self-reliant pharmaceutical supply chain, making India a globally dependable source of essential bulk drugs.
Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP)
A shining example of inclusive and people-centric health policy, the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) has transformed access to affordable healthcare across India. Anchored in the principle that quality medicines should not be a luxury but a right, the initiative ensures the widespread availability of quality-assured generic medicines at significantly lower prices compared to branded equivalents. As of April 8, 2025, the reach of this initiative has expanded remarkably, with over 15,479 Jan Aushadhi Kendras established across the country, spanning urban centers to the remotest corners of rural India.
The PMBJP operates with a multi-pronged strategy aimed at creating a sustainable and accessible healthcare ecosystem. One of its key pillars is public awareness—actively dispelling misconceptions around generic medicines and educating citizens that lower cost does not imply lower quality. The scheme also focuses on transforming prescribing behavior by encouraging doctors and healthcare providers, particularly in government hospitals and dispensaries, to recommend affordable generic alternatives without compromising therapeutic efficacy.
Equally significant is the scheme’s focus on last-mile delivery. Through its vast network of Jan Aushadhi Kendras, it ensures the timely availability of essential medicines even in underserved and remote regions, where access to healthcare remains a challenge. These Kendras are not just retail outlets but symbols of health equity, offering more than 1,800 types of drugs and surgical products at affordable prices.
Under the visionary leadership of Prime Minister Narendra Modi, PMBJP stands as a powerful testament to the government’s commitment to inclusive growth, health equity, and social justice. By bridging the affordability gap and promoting rational drug use, the scheme has not only lightened the financial burden on millions of families but has also strengthened public trust in India’s healthcare system.
SPI Scheme & Rising Innovation and R&D Capabilities
The Strengthening of Pharmaceuticals Industry (SPI) Scheme is a critical component of the Government of India’s broader strategy to enhance the resilience, innovation, and global competitiveness of the pharmaceutical sector. With an outlay of ₹500 crore for the period FY 2021–22 to FY 2025–26, the scheme provides targeted support to small and medium enterprises (SMEs) that form the backbone of India’s pharma manufacturing landscape. Through capacity-building initiatives, regulatory system upgrades, and the development of common testing and training facilities, the SPI Scheme aims to uplift the entire pharma value chain by fostering quality, compliance, and sustainable manufacturing practices.
One of the key objectives of the SPI Scheme is to facilitate technological modernization and regulatory harmonization, especially for SMEs that often lack the infrastructure to meet evolving global standards. By funding common facilities and offering technical assistance, the scheme promotes a shared innovation environment where smaller players can thrive alongside larger pharmaceutical giants. This approach ensures a more inclusive industrial ecosystem, aligned with the Make in India vision of empowering domestic industries at all levels.
In tandem with these capacity-building efforts, India’s pharmaceutical sector is undergoing a dynamic transformation in research and innovation, supported by bold and forward-thinking policies of the Modi government. India is no longer seen merely as a manufacturer of low-cost generics but is increasingly positioning itself as a hub for biopharma innovation and advanced healthcare technologies. The rise of biopharmaceutical startups has been particularly notable, with many leveraging indigenous talent and global collaborations to create cutting-edge solutions for both domestic and international markets.
Further bolstering this innovation ecosystem is the integration of digital health tools, which is transforming healthcare delivery, data management, and patient outcomes. In parallel, the development of a more robust clinical trial infrastructure is attracting global pharmaceutical companies to conduct trials in India, given the regulatory clarity, scientific talent, and cost advantages the country offers.
Crucially, India’s collaboration with leading international health agencies like the World Health Organization (WHO), UNICEF, and GAVI has not only elevated its role as a global public health contributor but also opened new avenues for technology transfer, quality benchmarking, and joint research. These engagements underscore the growing confidence in India’s scientific and regulatory capabilities.
Under the expansive umbrella of Make in India, the nation is transitioning from being a volume-centric producer to a value-driven innovator. The government’s emphasis on R&D, coupled with supportive infrastructure and international cooperation, is redefining India’s pharmaceutical identity—from a generic manufacturer to a global leader in drug discovery, biosciences, and healthcare innovation. This evolution marks a significant leap forward in realizing the vision of Viksit Bharat, powered by self-reliant and future-ready pharma capabilities.
A Visionary Leap Toward Viksit Bharat
The transformation of India’s pharmaceutical sector under the Make in India initiative is a landmark achievement in self-reliance, health security, and global outreach. With focused schemes like PLI, Bulk Drug Parks, and PMBJP, the Modi government has empowered India to emerge as a trusted global health partner, delivering high-quality medicines and devices at scale and speed.
As India moves toward Viksit Bharat@2047, the pharmaceutical and medical devices sectors will serve as pillars of growth, innovation, and diplomacy—proving that Make in India is not just a slogan, but a global strategy reshaping the future of health.
