PLI Scheme for Pharmaceuticals — Up to ₹10,000 Cr in Incentives

The PLI Scheme for Pharmaceuticals is a central government production incentive run by the Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers. It does not hand out a one-time grant. Instead, it pays manufacturers a cash incentive worked out on the net incremental sales of eligible pharmaceutical goods and in-vitro diagnostic medical devices, which means the payout only grows when actual production and sales grow.

The scheme was built to move India's pharma sector up the value chain. It pushes fresh investment into domestic manufacturing capacity, encourages product diversification towards high-value goods and critical ingredients, and aims to reduce the country's dependence on imports for both finished products and key inputs. Support is structured across a six-year window, from FY 2022-23 to FY 2027-28.

SIDBI acts as the Project Management Agency. It receives and processes applications through a dedicated online portal, evaluates them against a pre-defined ranking methodology, and handles the annual release of incentive money. Applications are accepted on a rolling basis rather than against a single fixed cut-off.

Because the payout is tied to incremental sales instead of a fixed cheque, the scheme is aimed at manufacturers with a substantial existing revenue base. Eligibility thresholds are set by global manufacturing revenue in FY 2019-20, and applicants are sorted into Group A, Group B, Group C, or a dedicated MSME sub-category inside Group C.

• Sales-linked incentive of 3%–10% on incremental sales of pharma goods and in-vitro diagnostic devices
• Six-year payout window running from FY 2022-23 to FY 2027-28
• Maximum incentive of up to ₹10,000 crore for Group A applicants
• Groups A, B and C defined by FY 2019-20 global manufacturing revenue, plus a separate MSME sub-category in Group C
• Applications on a rolling basis; SIDBI is the Project Management Agency
• 75% of an approved claim is released immediately, with the balance 25% after final audited accounts

A few conditions apply to every applicant, and a set of financial thresholds then decides which group you are placed in.

Conditions that apply to everyone

• You must be a pharmaceutical goods manufacturer registered in India.
• You must be manufacturing products covered by the scheme's three defined product categories.
• You cannot claim an incentive for the same product under another PLI scheme.

Group thresholds, based on Global Manufacturing Revenue in FY 2019-20

• Group A: global manufacturing revenue of pharmaceutical goods or in-vitro diagnostic medical devices of ₹5,000 crore or more; minimum cumulative investment of ₹1,000 crore over 5 years; minimum eligible product turnover of ₹50 crore in FY 2022-23.
• Group B: global manufacturing revenue between ₹500 crore and ₹5,000 crore; minimum cumulative investment of ₹250 crore over 5 years; minimum eligible product turnover of ₹10 crore in FY 2022-23.
• Group C: global manufacturing revenue below ₹500 crore; minimum cumulative investment of ₹50 crore over 5 years; minimum eligible product turnover of ₹1 crore in FY 2022-23.
• Group C (MSME): you must fall within the Micro, Small and Medium Enterprises category and sit in Group C, commit eligible investment over 5 years, and reach a minimum eligible product turnover of ₹50 lakh in FY 2022-23.

Staying eligible year after year From FY 2023-24 onwards, applicants need to show at least 7% growth in sales over the previous financial year to keep claiming incentives.

PLI Scheme for Pharmaceuticals — Up to ₹10,000 Cr in Incentives is open to startups at any stage. It is open to startups registered anywhere in India.

PLI Scheme for Pharmaceuticals — Up to ₹10,000 Cr in Incentives accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Sales-linked cash incentive The scheme pays a percentage of your net incremental sales of eligible pharmaceutical goods and in-vitro diagnostic medical devices. The payout period spans six financial years, from FY 2022-23 to FY 2027-28.

Incentive rates, by product category and year

• Category 1 and Category 2 products: 10% for the first four years (FY 2022-23 to FY 2025-26), dropping to 8% in the fifth year and 6% in the sixth.
• Category 3 products: 5% for the first four years, then 4% in the fifth year and 3% in the sixth.

Maximum incentive per applicant

• Group A: up to ₹10,000 crore
• Group B: up to ₹2,500 crore
• Group C: up to ₹50 crore

The award range published for the scheme runs from ₹15 lakh to ₹1,000 crore, while the higher per-applicant caps above apply to Group A and Group B applicants.

How the money reaches you Claims are filed annually. Once an order is passed, 75% of the approved claim amount is released immediately, and the remaining 25% comes after you submit your final audited accounts — a structure designed to get working funds to manufacturers faster.

PLI Scheme for Pharmaceuticals — Up to ₹10,000 Cr in Incentives is offered by Ministry of Chemicals and Fertilizers, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Applications are processed and evaluated by SIDBI, which acts as the Project Management Agency for the scheme.

Once the application window closes, SIDBI screens the submissions it has received and assesses them using a pre-defined ranking methodology. That ranking weighs factors such as your Global Manufacturing Revenue, the investment you have committed, and the product categories you propose to manufacture.

Selection results are normally communicated within 90 days of the application window closing. If you are selected, you receive an official approval letter from the Project Management Agency.

Within two weeks of receiving that approval letter, you must furnish a Bank Guarantee of the prescribed amount and an Undertaking in favour of the Department of Pharmaceuticals.

The process then shifts into an annual cycle. Each year you file your incentive claim through the online portal with the required supporting documents, and this must be done within one month of the close of the financial year.

Before you apply to PLI Scheme for Pharmaceuticals — Up to ₹10,000 Cr in Incentives, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

PLI Scheme for Pharmaceuticals — Up to ₹10,000 Cr in Incentives is best suited for startups in India seeking non-dilutive funding of ₹15L – ₹1000Cr. If that describes your startup, review the eligibility criteria above before applying.