This move, driven by the government's initiative to strengthen India’s pharmaceutical self-reliance, is expected to drastically cut prices of cancer treatments

For years, cancer patients in India have faced the crushing burden of exorbitant treatment costs, often forcing them to make impossible choices—between life-saving medication and financial ruin. But a paradigm shift may be on the horizon. Thanks to India’s Production Linked Incentive (PLI) scheme, the country’s top pharmaceutical players, including Sun Pharma, Cipla, Glenmark, Cadila, and Biocon, have begun manufacturing high-value cancer drugs domestically.

This move, driven by the government's initiative to strengthen India’s pharmaceutical self-reliance, is expected to drastically cut prices of cancer treatments. But is this truly the revolution that will make life-saving oncology drugs accessible to all? Industry leaders weigh in on the potential, challenges, and long-term impact of this historic development.

Breaking the Monopoly of Imported Drugs

At present, the vast majority of cancer drugs available in India are imported—a key reason behind their astronomical costs. With domestic production under the PLI scheme, drugs such as Dasatinib, Lenalidomide, Nintedanib, Sunitinib, Trastuzumab, and Bevacizumab are now being manufactured locally, slashing their prices significantly.

The PLI scheme is already playing a crucial role in reshaping India's pharma landscape. As Chakravarthi AVPS, Sr Vice President (National) & Chairman (TG & AP) of FOPE, highlighted, "Domestic production under the PLI scheme is slashing prices of critical cancer drugs, making them significantly more affordable. Dasatinib, Lenalidomide, Nintedanib, and Sunitinib, once priced at Rs 1.5-2 lakh per month due to import costs, are now available for as low as Rs 4,000 per month. Similarly, Trastuzumab, a key breast and stomach cancer drug, has dropped from Rs 70,000-80,000 per month to just Rs 12,000. As more manufacturers enter the space, prices are set to decline even further."

PLI: A Game-Changer or a Partial Fix?

Despite the optimism, experts caution that affordability is more than just manufacturing costs. According to Chakravarthi, the PLI scheme is a step in the right direction, but affordability depends on multiple factors beyond drug manufacturing costs—such as distribution, hospital pricing, and regulatory approvals. While the scheme will help lower the prices of some cancer drugs by reducing import dependence, patented drugs will remain expensive unless further policy interventions, like price negotiations and compulsory licensing, are introduced.

This raises a critical concern—while generic and biosimilar drugs will become cheaper, patented drugs from multinational companies will still be out of reach for most patients.

Can India Become the ‘Pharmacy of the World’ for High-Value Drugs?

India has long been celebrated as the global hub for generic drugs, supplying 60 per cent of the world’s vaccines and a major share of generic medicines. However, in the field of high-value medicines like oncology drugs, India still relies heavily on imports.

Chakravarthi AVPS emphasises the need for domestic R&D and API (Active Pharmaceutical Ingredient) production to truly dominate the global market and said, "India is already a leader in generic manufacturing, but for high-value medicines, we still depend on imports, especially for APIs and complex biologics. If the PLI scheme successfully strengthens API production and encourages innovation in targeted cancer therapies, India could reduce its import dependency and enhance its global position.”

With Rs 15,000 crore allocated for PLI incentives and Rs 34,347 crore already invested in the pharma sector, India is making strides in self-sufficiency. However, true leadership in oncology solutions will require significant investment in cutting-edge research, clinical trials, and next-gen therapies like CAR-T cell therapy and immunotherapy.

Will the PLI Scheme Make Cancer Treatment Truly Affordable?

Cancer treatment costs extend far beyond just the price of medication. Patients face hospitalization fees, diagnostic costs, radiation therapy expenses, and limited insurance coverage.

“The PLI scheme can lower drug costs, but unless supported by Ayushman Bharat-like policies for cancer care and wider insurance penetration, financial strain on patients will persist,” says Chakravarthi AVPS.

This underscores the need for a multi-pronged approach—not just drug affordability, but also healthcare infrastructure reforms, insurance expansion, and regulatory oversight to ensure fair pricing by hospitals and distributors.

Can the PLI Model Be Replicated for Other Life-Saving Drugs?

The success of the PLI scheme in oncology could pave the way for similar initiatives targeting cardiovascular diseases, diabetes, and rare diseases. With the government already considering expanding PLI support to complex generics and biologics, India has the opportunity to lead in affordable, high-quality drug manufacturing across multiple therapeutic areas.

However, industry leaders caution that global trade policies, patent laws, and regulatory barriers will still play a major role in determining the true impact of these initiatives on global healthcare affordability.

With Indian pharma companies doubling their investments under the PLI scheme, the stage is set for India to challenge the dominance of multinational drugmakers. However, for true disruption, India must:

• Expand R&D efforts beyond generics into novel drug development.
• Strengthen API and biosimilar production to reduce dependency on China.
• Improve regulatory efficiency to accelerate drug approvals.

If executed well, the PLI initiative could mark the beginning of a new era in affordable cancer treatment—not just for India, but for the world.

With domestic pharma giants stepping up and government incentives fueling innovation, India is on the brink of transforming global cancer care—one life-saving drug at a time.