India’s pharmaceutical and medical devices sector has witnessed a significant surge in foreign direct investment (FDI), totaling ₹19,134.4 crore for the financial year ending March 31, 2025. According to official data released by the Department of Pharmaceuticals, this includes ₹11,888 crore received between April and December 2024 and approved proposals worth ₹7,246.4 crore for brownfield projects.
This upswing in FDI reflects growing global investor confidence in India’s pharma ecosystem, bolstered significantly by the government’s Production Linked Incentive (PLI) Scheme. Designed to boost domestic manufacturing and reduce import dependency, the PLI initiative has emerged as a game-changer for the sector.
PLI Scheme Exceeds Investment Expectations
One of the most notable milestones under the PLI Scheme has been its ability to surpass investment targets. While the initial target for investment stood at ₹3,938.57 crore, the actual realized investment soared to ₹4,253.92 crore by December 2024—well ahead of schedule.
The PLI Scheme for Bulk Drugs, a core component of this initiative, has selected a total of 48 projects. Of these, 34 projects aimed at 25 critical bulk drugs have already been commissioned. This marks a significant step towards self-reliance in pharmaceutical ingredients, a sector previously heavily dependent on imports.
Strategic Shift in Pharma Manufacturing
Industry experts believe this wave of investments is a strategic pivot, strengthening India’s position as the pharmacy of the world. The PLI scheme is also credited with attracting top global and domestic players into the Indian manufacturing space, increasing exports, and stimulating innovation.
With this investment momentum, India is not only securing its drug supply chain resilience but also setting the foundation for sustainable healthcare manufacturing growth in the long term.