Government readies ₹7,000 crore scheme to strengthen bulk-drug sector

The government is developing a ₹7,000 crore scheme designed to reinvigorate India's bulk-drug manufacturing sector, which remains heavily dependent on imports despite the country's strengths in formulation and finished-dose production.

Unlike previous incentive programmes that focused exclusively on new capacity creation, the proposed scheme is expected to extend support to existing pharmaceutical plants, recognising their potential for expansion and modernisation. This approach would enable established manufacturers to upgrade facilities, improve efficiency and increase output without waiting for fresh greenfield projects.

A key feature of the initiative is the adoption of a platform-based model, which could facilitate better coordination across the supply chain and connect manufacturers with technology providers, research institutions and end-users more effectively. The framework is also intended to strengthen research and development capabilities within the bulk-drug sector, addressing a critical gap in domestic innovation.

The scheme reflects growing policy focus on reducing India's reliance on imported active pharmaceutical ingredients and building a more resilient, vertically integrated pharmaceutical ecosystem. By strengthening the upstream bulk-drug segment, policymakers aim to enhance the competitiveness and self-sufficiency of India's entire pharmaceutical industry.