News and Articles

• Advancing domestic chemical and pharmaceutical manufacturing under Make in India through integrated ecosystems, innovation, and financial support.
• Establishing large-scale Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) with shared infrastructure to attract sustainable investment.
• Implementing a Plastic Park Scheme with government grants to consolidate downstream plastic processing, with nine parks approved.
• Funding Centres of Excellence at academic institutions to modernize processes and develop new technologies, with eighteen centres operational.
• Developing three Bulk Drug Parks with subsidized utilities and fiscal incentives to support active pharmaceutical ingredient (API) manufacturers.
• Supporting three Medical Device Parks, with nearly 200 manufacturers allotted land and construction started on 34 units as of September 2025.
• Operating a Production Linked Incentive (PLI) scheme for Bulk Drugs to build domestic API capacity, already creating production for 26 critical items and reducing imports.
• Executing a broader PLI Scheme for Pharmaceuticals to incentivize high-value drug manufacturing, generating over Rs. 26,000 crore in domestic sales and 191 new APIs.

The Department of Chemicals and Petrochemicals is advancing several key initiatives under the Make in India framework to bolster domestic manufacturing in the chemical and pharmaceutical sectors. These efforts focus on creating integrated industrial ecosystems, fostering innovation, and providing targeted financial support.

A cornerstone of this strategy is the development of specialized industrial regions. The Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) policy establishes large-scale, cluster-based zones with shared infrastructure to attract major investments in an environmentally sustainable manner. Complementing this, the Plastic Park Scheme aims to consolidate downstream plastic processing industries. The government provides grants covering up to fifty percent of a project's cost, capped at forty crore rupees, to develop parks with modern common facilities. To date, nine such parks have received approval and are in various stages of implementation.

Parallel efforts are underway to drive innovation through research. A sub-scheme for establishing Centres of Excellence offers grant-in-aid support to academic and research institutions. This funding, covering half the project cost up to five crore rupees, is directed at modernizing manufacturing processes, developing new polymer applications, and creating novel molecules and technologies. Currently, eighteen of these centres are operational.

Specific programs target the crucial pharmaceutical supply chain. The Scheme for Promotion of Bulk Drug Parks, with a three thousand crore rupee outlay, has approved three parks in Andhra Pradesh, Gujarat, and Himachal Pradesh. These parks provide subsidized land, utilities, and common infrastructure like effluent treatment plants to manufacturers of active pharmaceutical ingredients (APIs).

State agencies offer additional fiscal incentives, and priority in land allotment is given to manufacturers of products identified under the related Production Linked Incentive (PLI) scheme. Similarly, the Scheme for Promotion of Medical Devices Parks supports three parks in Uttar Pradesh, Madhya Pradesh, and Tamil Nadu. As of September 2025, nearly two hundred manufacturers have been allotted land across these parks, with construction begun on thirty-four units.

The government is also directly incentivizing production through two major PLI schemes. The PLI Scheme for Bulk Drugs, with an outlay of nearly seven thousand crore rupees, aims to build domestic capacity for critical key starting materials, drug intermediates, and APIs to mitigate import dependency. By September 2025, the scheme has already stimulated the creation of production capacity for twenty-six such items, attracted investments exceeding forty-seven hundred crore rupees, and achieved cumulative sales of over twenty-three hundred crore rupees, significantly reducing import needs.

Furthermore, the broader PLI Scheme for Pharmaceuticals, with a fifteen thousand crore rupee outlay, encourages the manufacture of high-value goods including biopharmaceuticals, complex generics, and patented drugs, alongside non-notified APIs. This scheme has catalyzed substantial investment and production, resulting in domestic sales worth over twenty-six thousand crore rupees and the introduction of 191 new APIs and intermediates by September 2025.