The PLI Scheme: How India is Making Cancer Treatment Affordable
Cancer treatment in India has long been synonymous with daunting price tags, forcing many patients to make impossible choices about their health. But a breakthrough initiative is reshaping this reality. The Indian government’s Production Linked Incentive (PLI) scheme is enabling domestic pharmaceutical companies to manufacture high-value cancer drugs locally, bringing hope to millions by slashing treatment costs and improving accessibility.
This blog explores how the PLI scheme is revolutionizing cancer care in India, transforming the pharmaceutical landscape, and addressing the growing burden of cancer in the country.
A Turning Point in Cancer Drug Manufacturing
India’s reliance on imported cancer drugs has contributed significantly to the high cost of treatment. But this paradigm is shifting. Under the PLI scheme, leading pharmaceutical companies like Sun Pharmaceutical Industries, Cipla, Cadila Healthcare, and Biocon are producing key cancer drugs within the country. These initiatives, supported by the government, aim to reduce dependency on costly imports and make life-saving medications more accessible.
The timing couldn’t be more critical. According to the Indian Council of Medical Research (ICMR), the number of disability-adjusted life years (DALYs) due to cancer is set to rise from 26.7 million in 2021 to 29.8 million by 2025. The PLI scheme is positioned as a vital step in mitigating this crisis by enabling affordable cancer treatments.
Reducing Costs, Increasing Accessibility
The impact of local manufacturing is already evident. Imported cancer drugs like Dasatinib, Lenalidomide, and Sunitinib previously cost ?1.5 to ?2 lakh per month. Today, Indian-produced versions are available for as low as ?4,000 per month. Breast and stomach cancer medication Trastuzumab, once priced at ?70,000 to ?80,000 per month, is now available at just ?12,000.
Here’s how some top companies are driving this change:
These extraordinary cost reductions demonstrate how domestic manufacturing can alleviate financial and emotional strain on patients and their families.
Strengthening India’s Pharmaceutical Industry
India is already the third-largest pharmaceutical producer globally by volume, valued at $40 billion. However, much of these exports involve low-value generics, with high-value patented drugs predominantly imported. The PLI scheme was launched in 2021 to bridge this gap, allocating ?15,000 crore to support domestic manufacturing of high-value pharma products.
The scheme focuses on:
By incentivizing investments in R&D, manufacturing equipment, clinical trials, and regulatory compliance, the scheme is building a more self-reliant and globally competitive pharmaceutical ecosystem.
Expanding Beyond Cancer Treatments
Cancer care isn’t the only focus under the PLI scheme. Pharmaceuticals for other critical conditions are also being domestically produced:
These broader efforts underscore the commitment to a healthier India, ensuring cost-effective treatments for a wide range of diseases.
Surpassing Investment and Sales Targets
The PLI scheme has exceeded expectations. Investments by pharmaceutical companies have hit ?34,347 crore—double the government’s initial target. Meanwhile, sales under the initiative have reached ?2,35,384 crore, with exports contributing ?1,51,106 crore to the total. These figures highlight the scheme’s success in fostering domestic pharmaceutical growth while bolstering exports.
Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA), notes that the schemes are not just about cost reductions but also about enhancing India’s global competitiveness in pharmaceuticals. India’s capabilities in manufacturing essential drugs like Penicillin-G and Clavulanic Acid have already seen significant advancements.
Building Hope for India’s Healthcare Sector
The PLI scheme is more than a healthcare policy—it represents a commitment to improving lives through accessible and affordable medicines. For cancer patients in particular, this initiative offers hope in the face of a disease that can be as financially draining as it is physically and emotionally taxing.
But the implications extend beyond India’s borders. By strengthening its domestic pharmaceutical industry, India is solidifying its role as the “pharmacy of the world.” With the PLI scheme enabling significant advancements in drug manufacturing, India is paving the way for a healthier, more self-reliant future.
The Road Ahead
The fight against cancer is far from over, and India’s cancer burden continues to grow. However, the PLI scheme provides a blueprint for addressing healthcare challenges with innovation, collaboration, and strategic investment. By reducing dependency on imports and bolstering local production, India is poised to lead the way in making life-saving drugs more accessible—not just for cancer treatment but for a wide range of critical conditions.
If this initiative’s early successes are any indication, the future of affordable and accessible healthcare in India is bright. And with its strengthened position in global pharmaceuticals, India is set to create meaningful change for patients worldwide.
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This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.