What happened

The Government of India has outlined measures to reduce import dependence in pharmaceuticals, medical devices, urea, and phosphatic-potassic fertilizers. The measures combine industrial incentives, capacity expansion, and subsidy design to support atmanirbharta in two strategically important input sectors.

Pharmaceuticals and medical devices

The Department of Pharmaceuticals is running three Production Linked Incentive schemes with a total budgetary outlay of Rs 25,360 crore. According to the government, these schemes have attracted investments of over Rs 51,997 crore and generated cumulative sales of Rs 3.88 lakh crore, including exports of over Rs 2.43 lakh crore.

The government says the schemes have created production capacity for 218 Active Pharmaceutical Ingredients/Key Starting Materials/Drug Intermediaries and 57 medical devices, including CT scanners, MRI machines, ultrasound equipment, LINAC systems, and critical implants.

The medical devices segment is a useful case study in import substitution. The government states that medical device exports and domestic manufacturing have both risen sharply over the 2019-20 to 2024-25 period, indicating a shift from dependence on imports toward a stronger domestic manufacturing base.

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