UPSC Prelims Practice Questions — Production Linked Incentive Schemes have Strengthened India’s Pharmaceutical, Bulk Drugs and Medical Devices Manufacturing Ecosystem

Question 1

With reference to the three Production Linked Incentive (PLI) schemes administered by the Department of Pharmaceuticals, consider the following:
1. The PLI Scheme for Bulk Drugs, approved in 2020, has a financial outlay of ₹6,940 crore.
2. The PLI Scheme for Pharmaceuticals, approved in 2021, has a financial outlay of ₹15,000 crore.
3. The PLI Scheme for Promoting Domestic Manufacturing of Medical Devices, approved in 2021, has a financial outlay of ₹3,420 crore.
4. The stated objectives of these schemes include preventing supply disruption of critical Active Pharmaceutical Ingredients and reducing import dependence, in line with Make in India and Atmanirbhar Bharat.
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 4 only

Answer

1 and 2 only

Answer

2, 3 and 4 only

Answer

1, 3 and 4 only

Question 2

The scheme commonly referred to as the 'PLI Scheme for Bulk Drugs' is formally a scheme for promotion of domestic manufacturing of which one of the following?

Accepted Answer

Critical Key Starting Materials, Drug Intermediates and Active Pharmaceutical Ingredients

Answer

Biopharmaceuticals, complex generic drugs and patented drugs nearing patent expiry

Answer

Cancer care and radiotherapy devices, radiology and imaging devices, and body implants

Answer

Orphan drugs, complex excipients and in-vitro diagnostic devices used in public health programmes

Question 3

The Production Linked Incentive Scheme for Bulk Drugs was approved in which year, and it envisages domestic manufacturing of how many identified bulk drugs?

Accepted Answer

2020; 41 bulk drugs

Answer

2021; 41 bulk drugs

Answer

2020; 33 bulk drugs

Answer

2021; 25 bulk drugs

Question 4

As of June 2026, how many projects had been commissioned under the Production Linked Incentive Scheme for Bulk Drugs?

Accepted Answer

39

Answer

34

Answer

38

Answer

48

Question 5

Under the Production Linked Incentive Scheme for Pharmaceuticals, how many applicants have been selected, and what is the position of MSMEs among them?

Accepted Answer

55 applicants, of which 20 are MSMEs

Answer

55 applicants, all of whom are MSMEs

Answer

48 applicants, of which 20 are MSMEs

Answer

35 applicants, of which 11 are MSMEs

Question 6

Applicants under the Production Linked Incentive Scheme for Pharmaceuticals were classified into groups on the basis of their global manufacturing revenue from pharmaceutical goods. Which one of the following groups accounts for the largest number of selected applicants?

Accepted Answer

Group C, consisting of applicants with global manufacturing revenue from pharmaceutical goods below ₹500 crore

Answer

Group A, consisting of applicants with the highest global manufacturing revenue from pharmaceutical goods

Answer

Group B, consisting of applicants with mid-sized global manufacturing revenue from pharmaceutical goods

Answer

A separate MSME group maintained outside Groups A, B and C by the Department of Pharmaceuticals

Question 7

The Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices is implemented by which one of the following?

Accepted Answer

Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers

Answer

Central Drugs Standard Control Organisation, under the Ministry of Health and Family Welfare

Answer

Department for Promotion of Industry and Internal Trade, under the Ministry of Commerce and Industry

Answer

Department of Health Research, under the Ministry of Health and Family Welfare

Question 8

With reference to the progress reported under the Production Linked Incentive schemes of the Department of Pharmaceuticals as of June 2026, consider the following statements:
1. Under the Pharmaceuticals PLI, actual investment of ₹46,744 crore stands well above the scheme's investment target of ₹17,275 crore.
2. Cumulative exports of ₹2,57,370 crore under the Pharmaceuticals PLI amount to less than half of its cumulative sales of ₹4,02,869 crore since FY 2022-23.
3. Under the Bulk Drugs PLI, realised investment of ₹5,210.74 crore exceeds the committed investment of ₹4,330 crore.
Which of the statements given above is/are correct?

Accepted Answer

1 and 3 only

Answer

1 only

Answer

1 and 2 only

Answer

1, 2 and 3

Question 9

Consider the following statements about India's position in the global pharmaceutical economy:
1. India is the third-largest producer of pharmaceuticals in the world by volume.
2. India is the largest global supplier of generic medicines, accounting for around 20 per cent of global supply.
3. In FY 2024-25, China accounted for about 2.8 per cent of India's imports of Active Pharmaceutical Ingredients, bulk drugs and drug intermediates.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

2 and 3 only

Answer

1 and 3 only

Answer

1, 2 and 3

Question 10

Which one of the following best describes the PRIP scheme of the Department of Pharmaceuticals?

Accepted Answer

A ₹5,000 crore scheme to shift the pharma-MedTech sector from cost-based to innovation-based growth, with Centres of Excellence at the NIPERs

Answer

A ₹3,000 crore scheme providing central assistance of up to ₹1,000 crore per park for creation of common infrastructure facilities in bulk drug parks

Answer

A scheme providing financial assistance to pharmaceutical clusters for creation of common facilities, known in short as API-CF

Answer

A scheme providing a 5 per cent incentive on incremental sales of medical devices manufactured in India, for five years, across four target segments

Question 11

Which one of the following best describes the defining design feature of India's Production Linked Incentive schemes, which now span 14 sectors with an outlay of about ₹1.97 lakh crore?

Accepted Answer

Incentives are paid on incremental sales of goods manufactured in India, measured over a defined base year

Answer

Incentives are given as upfront capital subsidies on plant and machinery installed in notified industrial parks and corridors

Answer

Incentives take the form of higher customs duties imposed on competing imports so as to shelter domestic producers

Answer

Incentives are paid as reimbursement of input costs such as power tariffs and logistics expenses borne by manufacturers

UPSC Prelims Practice Questions — Production Linked Incentive Schemes have Strengthened India’s Pharmaceutical, Bulk Drugs and Medical Devices Manufacturing Ecosystem

Q2. The scheme commonly referred to as the 'PLI Scheme for Bulk Drugs' is formally a scheme for promotion of domestic manufacturing of which one of the following?

Q3. The Production Linked Incentive Scheme for Bulk Drugs was approved in which year, and it envisages domestic manufacturing of how many identified bulk drugs?

Q4. As of June 2026, how many projects had been commissioned under the Production Linked Incentive Scheme for Bulk Drugs?

Q5. Under the Production Linked Incentive Scheme for Pharmaceuticals, how many applicants have been selected, and what is the position of MSMEs among them?

Q6. Applicants under the Production Linked Incentive Scheme for Pharmaceuticals were classified into groups on the basis of their global manufacturing revenue from pharmaceutical goods. Which one of the following groups accounts for the largest number of selected applicants?

Q7. The Production Linked Incentive Scheme for Promoting Domestic Manufacturing of Medical Devices is implemented by which one of the following?

Q10. Which one of the following best describes the PRIP scheme of the Department of Pharmaceuticals?

Q11. Which one of the following best describes the defining design feature of India's Production Linked Incentive schemes, which now span 14 sectors with an outlay of about ₹1.97 lakh crore?