New Delhi, June 23: India is the largest supplier of generic drugs globally and a key producer of vaccines and essential medicines. However, economists believe it is time for India to make a significant leap into the production of high-value pharmaceutical drugs and active pharmaceutical ingredients (APIs). This shift will require robust Production Linked Incentive (PLI) schemes.
In response to the recently released pharmaceutical trade report by NITI Aayog, economist Ved Jain stated that now is the right moment for India to advance in the export of high-value medicines.
“We need to invest in research and innovation in the field of original drugs and related facilities. I believe there should be a strong PLI scheme for high-value drugs and API products,” he emphasized.
According to the NITI Aayog report, India’s competitive advantage currently lies mainly in the formulation, retail drugs, and generic medicine sectors. India continues to maintain strong competition in the generic drug market, even in regions with stringent regulatory standards like the United States and Europe.
Ved Jain pointed out that India must further reduce regulatory hurdles, enhance production capacity, and increase the output of high-value pharmaceutical drugs for export. He noted that the free trade agreements (FTAs) India has signed with various countries could be beneficial in this regard, provided some regulatory restrictions are lifted.
The PLI scheme for the pharmaceutical sector promotes the manufacturing of high-value products such as biopharmaceuticals, complex generics, patented and off-patent drugs, medicines for rare diseases, and treatments for autoimmune disorders.
By September 2025, the scheme recorded total sales of ₹3,08,408.60 crores, including exports worth ₹1,98,509.49 crores. Under this scheme, an investment of ₹40,294 crores was made by September 2025, significantly exceeding the target of ₹17,275 crores.
The PLI scheme, which promotes domestic manufacturing, has also played a crucial role in reducing India’s dependence on bulk drug imports.
The report indicates that the global pharmaceutical industry is rapidly moving towards high-value sectors such as biologics, vaccines, immunologicals, and advanced therapeutics. However, India’s export presence in these areas remains limited. Experts believe that if India increases investment and production in these sectors, it can further strengthen its position in the global pharma industry.
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