India pharma PLI draws ₹46,744 crore, but China’s API import share rises to 73.7%
Pharma PLI schemes have attracted ₹46,744 crore in investment and expanded local API and device production, yet India’s dependence on Chinese APIs, KSMs and intermediates deepened between FY21 and FY25.
What happened
retail-company · India’s pharma PLI schemes drew Rs 46,744 crore in investment and expanded domestic API and medical-device capacity, but China’s share of
Key facts
- Rs 46,744 crore PLI investments as of June 2026
- Rs 17,275 crore scheme investment target
- Rs 4.03 lakh crore total sales
- Rs 2.57 lakh crore exports
- 1.21 lakh jobs
What changed
India’s pharma PLI schemes drew Rs 46,744 crore in investment and expanded domestic API and medical-device capacity, but China’s share of India’s API, KSM and intermediate imports increased to 73.7% by FY25, underscoring continuing supply-chain dependence.
Why this matters
PLI-backed capacity is growing, but rising dependence on Chinese APIs and intermediates leaves pharma operators exposed to supply disruptions and input-cost volatility.
What to watch
- FY26 API/KSM import data showing whether China’s share rises above 75% or begins to decline.
- Government expansion of PLI, production-linked procurement, strategic stockpiles, mandatory origin disclosure or restrictions on imports of selected critical APIs.
- Commissioning, USFDA/EMA approvals and utilization rates at domestic API plants, especially fermentation-based and high-volume essential APIs.
- Chinese API price movements, environmental inspections, export licensing actions and renminbi changes.
- Drug-price-control decisions and tender prices for essential medicines, which determine formulators' ability to absorb higher API costs.