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

It is a central government production incentive scheme from the Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers. Instead of a one-time grant, it pays manufacturers a percentage of their net incremental sales of eligible pharmaceutical goods and in-vitro diagnostic medical devices. SIDBI serves as the Project Management Agency, handling applications and disbursement through a dedicated online portal.

Payouts depend on your product category, the year, and how much your sales grow. Category 1 and 2 products earn 10% of incremental sales for the first four years, then 8% in year five and 6% in year six. Category 3 products earn 5% for four years, then 4% and 3%. The overall cap per applicant is ₹10,000 crore for Group A, ₹2,500 crore for Group B and ₹50 crore for Group C.

The scheme is listed as rolling or always open, so applications are not tied to a single fixed cut-off date. Do check the current scheme notification before you begin, since the application window itself is set by the scheme guidelines. Once a window closes, selection results are normally communicated within 90 days.

You must be a pharmaceutical goods manufacturer registered in India, making products covered by the scheme's three defined categories. Beyond that, eligibility turns on your Global Manufacturing Revenue in FY 2019-20, which decides whether you fall into Group A (₹5,000 crore or more), Group B (₹500 crore to ₹5,000 crore) or Group C (below ₹500 crore), and each group carries its own minimum investment commitment and minimum eligible product turnover.

Group A needs a cumulative investment of at least ₹1,000 crore over 5 years and eligible product turnover of ₹50 crore in FY 2022-23. Group B needs ₹250 crore of investment over 5 years and ₹10 crore of turnover in FY 2022-23. Group C needs ₹50 crore of investment over 5 years and ₹1 crore of turnover in FY 2022-23. The MSME sub-category within Group C needs eligible investment over 5 years and turnover of ₹50 lakh in FY 2022-23.

Not for everyone. There is a specific sub-category for Micro, Small and Medium Enterprises within Group C, with relaxed turnover thresholds, and that route requires you to fall under the MSME category. Manufacturers who do not qualify as MSMEs can still apply under Group A, Group B, or the main Group C criteria.

No. This is a government incentive, not an investment. The Department of Pharmaceuticals pays you a percentage of your net incremental sales, and no equity or ownership stake in your business is taken in return.

You receive an official approval letter from the Project Management Agency. Within two weeks of that letter, you need to submit a Bank Guarantee of the prescribed amount along with an Undertaking in favour of the Department of Pharmaceuticals. After that, you claim your incentive every year through the online portal, filing within one month of the financial year closing.

Incentives are disbursed annually against the claims you file. Once an order is passed on an approved claim, 75% of the amount is released immediately, and the remaining 25% is released after you submit your final audited accounts.

No. Applicants are not allowed to claim incentives for the same product under other PLI schemes, so the same output cannot be counted twice across programmes.

Applications go through the official portal at https://pli-pharma.udyamimitra.in. You register on the portal and complete the application form, giving details of your Global Manufacturing Revenue, your investment commitments and the pharmaceutical product categories your company operates in, then pay the non-refundable application fee specified in the scheme guidelines. SIDBI then processes and evaluates your submission. Full scheme details are also available at https://pharma-dept.gov.in/schemes/production-linked-incentive-pli-scheme-promotion-domestic-manufacturing-critical-key.

Yes. From FY 2023-24 onwards, applicants must achieve at least 7% growth in sales over the previous financial year in order to continue claiming incentives. Since the incentive is calculated on incremental sales, continuing to grow is central to the design of the payout.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for PLI Scheme for Pharmaceuticals — Up to ₹10,000 Cr in Incentives, though having it can strengthen your application and unlock other benefits.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.