Key Details
Responding to a Rajya Sabha question, the Government stated that only the Department of Pharmaceuticals had attracted Parliamentary observations on fund utilisation, detailed the implementation measures introduced to improve scheme execution, and reported progress in domestic pharmaceutical manufacturing, medical devices and fertiliser production.
Area | Update |
|---|---|
Parliamentary observation | Underutilisation was observed in certain Department of Pharmaceuticals schemes. No such observations were made for the Departments of Fertilizers or Chemicals & Petrochemicals. |
Implementation reforms | PMA-based monitoring, claim forecasting, milestone-linked fund releases, improved TSA/PFMS readiness, budget alignment, stakeholder outreach and support for faster regulatory approvals. |
PLI performance | Three PLI schemes (₹25,360 crore outlay) have attracted over ₹51,997 crore in investments and generated cumulative sales of ₹3.88 lakh crore, including exports exceeding ₹2.43 lakh crore. |
Manufacturing outcomes | Capacity created for 218 APIs/KSMs/Drug Intermediaries and 57 medical devices, while medical device exports increased from ₹26,915 crore (2019–20) to ₹42,360 crore (2024–25). |
Fertiliser self-reliance | Indigenous urea production increased from 225 LMT (2014–15) to 293.30 LMT (2025–26), supported by new capacity, efficiency improvements and reforms under the NBS Scheme. |
Implementation Becomes the Focus
Replying to a Rajya Sabha question on 21 July 2026, the Government acknowledged that the Department-related Parliamentary Standing Committee had observed underutilisation of allocations under certain schemes of the Department of Pharmaceuticals. It clarified that no similar observations had been made for the Departments of Fertilizers or Chemicals & Petrochemicals.
To improve utilisation, the Department has strengthened programme execution through Project Management Agencies (PMAs), milestone-based fund releases, expenditure forecasting, improved TSA/PFMS readiness and closer alignment between budget allocations and project implementation. It has also expanded stakeholder outreach and accelerated regulatory support for Bulk Drug Parks and Medical Device Parks.
Government Highlights Manufacturing Outcomes
The Government argued that pharmaceutical manufacturing schemes are already delivering significant industrial outcomes despite implementation challenges.
The Department of Pharmaceuticals' three PLI schemes have attracted investments of over ₹51,997 crore against a budgetary outlay of ₹25,360 crore, generated cumulative sales of ₹3.88 lakh crore, including exports exceeding ₹2.43 lakh crore, and created production capacity for 218 APIs/KSMs/Drug Intermediaries and 57 medical devices. During the same period, medical device exports increased from ₹26,915 crore to ₹42,360 crore, while domestic manufacturing expanded from about ₹28,000 crore to ₹41,500 crore.
Fertiliser Reforms Continue to Build Domestic Capacity
The reply also highlighted continued efforts to reduce fertiliser import dependence. Indigenous urea production has increased from 225 LMT in 2014–15 to 293.30 LMT in 2025–26, supported by six new energy-efficient urea plants under the New Investment Policy (NIP)-2012 and efficiency gains under the New Urea Policy (NUP)-2015.
For phosphatic and potassic fertilisers, the Government pointed to reforms under the Nutrient Based Subsidy (NBS) Scheme, including recognition of new manufacturing capacity, expansion of supported fertiliser grades from 22 to 28, prescribed MRP margins for manufacturers and importers, and continued freight support for Single Super Phosphate (SSP).
Relevant Question for Policy Stakeholders: How can implementation and fund management reforms ensure that industrial incentive schemes consistently translate budget allocations into timely manufacturing capacity and greater import substitution?
Follow the Full Release Here: Underutilisation of fund allocations