UPSC Prelims Practice Questions — PLI Scheme for Bulk Drugs for Resilient Pharmaceutical Supply Chain

Q1. Under the Production Linked Incentive Scheme for promotion of domestic manufacturing of critical KSMs, Drug Intermediates and APIs, the incentive payable to a selected applicant is best described as which one of the following?

  • A. A stated percentage of the applicant's eligible sales of the notified bulk drug made at its approved plant
  • B. A stated percentage of the applicant's capital expenditure on plant, machinery and utilities at the approved site
  • C. A stated percentage of the assessed value of imports of the notified bulk drug displaced in that year
  • D. A stated share of the cost of the common infrastructure facilities created for the applicant's project

Q2. The PLI Scheme for Bulk Drugs, approved by the Union Cabinet in 2020 with an outlay of ₹6,940 crore for 41 products, is implemented by which one of the following?

  • A. Department of Health Research, under the Ministry of Health and Family Welfare
  • B. Department for Promotion of Industry and Internal Trade, under the Ministry of Commerce and Industry
  • C. Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers
  • D. Department of Biotechnology, under the Ministry of Science and Technology

Q3. Consider the following descriptions of substances associated with the PLI Scheme for Bulk Drugs: Which of the above is/are NOT correctly described?

  1. Telmisartan — an Active Pharmaceutical Ingredient used in the management of hypertension
  2. Clavulanic Acid — a β-lactamase inhibitor used alongside β-lactam antibiotics
  3. Para Amino Phenol — a key starting material for the manufacture of Paracetamol
  4. 6-APA — a fermentation-derived key starting material from which Penicillin G is manufactured
  • A. 1 and 2
  • B. 2 and 3
  • C. 1 and 4
  • D. 4 only

Q4. The PLI Scheme for Bulk Drugs groups its products into four Target Segments with differing minimum domestic value addition norms. Which one of the following carries the highest such requirement?

  • A. The two chemical-synthesis based segments, which must achieve at least 90% domestic value addition
  • B. The two fermentation-based segments, which must achieve at least 90% domestic value addition
  • C. The two fermentation-based segments, which must achieve at least 70% domestic value addition
  • D. The two chemical-synthesis based segments, which must achieve at least 70% domestic value addition

Q5. Penicillin G, whose manufacture in India has been restored under the scheme after a gap of about three decades, is best described as which one of the following?

  • A. A chemically synthesised API that is converted into 6-APA, the intermediate for amoxicillin and ampicillin
  • B. A fermentation-based KSM that is converted into 7-ACA, the intermediate for cephalosporin antibiotics
  • C. A fermentation-based KSM that is converted into 6-APA, the intermediate for amoxicillin and ampicillin
  • D. A fermentation-derived β-lactamase inhibitor co-formulated with amoxicillin to counter bacterial resistance

Q6. The following products and plant locations are cited as greenfield projects commissioned under the PLI Scheme for Bulk Drugs: Which of the above is/are NOT correct?

  1. Atorvastatin — Nawanshahr, Punjab
  2. Para Amino Phenol — Dahej, Gujarat
  3. Erythromycin Thiocyanate — Pydibhimavaram, Srikakulam, Andhra Pradesh
  4. Clavulanic Acid — Nalagarh, Himachal Pradesh
  • A. 1 and 2
  • B. 3 only
  • C. 2 and 4
  • D. 1, 3 and 4

Q7. Greenfield projects approved under the PLI Scheme for Bulk Drugs cover how many distinct APIs, Drug Intermediates and Key Starting Materials?

  • A. 25
  • B. 33
  • C. 41
  • D. 48

Q8. Among the greenfield plants commissioned under the PLI Scheme for Bulk Drugs, the single largest project investment has gone into the plant making which one of the following?

  • A. Clavulanic Acid at Nalagarh, Himachal Pradesh
  • B. Atorvastatin at Nawanshahr, Punjab
  • C. Para Amino Phenol at Dahej, Gujarat
  • D. Penicillin G at Kakinada SEZ, Andhra Pradesh

Q9. China was India's single largest source of imported APIs, bulk drugs and drug intermediates in FY 2024-25. Its share of these imports was closest to which one of the following?

  • A. About 45%
  • B. About 62%
  • C. About 74%
  • D. About 88%

Q10. The Scheme for Promotion of Bulk Drug Parks, with an outlay of ₹3,000 crore, is best described as which one of the following?

  • A. Production-linked incentives paid to companies that set up API manufacturing units inside a notified bulk drug park
  • B. Central financial assistance to a selected State to create the common infrastructure facilities of a park, capped at ₹1,000 crore
  • C. Central grants to States to acquire land and allot it free of cost to API manufacturers shifting operations into India
  • D. Viability gap funding to State corporations for running captive effluent treatment plants attached to formulation units

Q11. Among the three States accorded in-principle approval for Bulk Drug Parks, which one receives the highest rate of central financial assistance, and at what rate?

  • A. Himachal Pradesh, at 90% of the project cost of common infrastructure facilities
  • B. Himachal Pradesh, at 70% of the project cost of common infrastructure facilities
  • C. Andhra Pradesh, at 90% of the project cost of common infrastructure facilities
  • D. Gujarat, at 90% of the project cost of common infrastructure facilities