India’s pharmaceutical industry has emerged as a globally integrated and policy-supported sector, ranking third in the world by volume and 11th by value, according to an official factsheet released on Saturday.
The sector comprises over 3,000 companies and more than 10,500 manufacturing units, reflecting its vast scale and expanding production capacity.
Market Size to More Than Double by 2030
India’s domestic pharmaceutical market, currently valued at $60 billion, is projected to grow to $130 billion by 2030, driven by rising demand, exports, and policy support.
According to the Economic Survey 2025-26, the industry recorded an annual turnover of ₹4.72 lakh crore in FY25, highlighting its strong contribution to the economy.
India Leads Global Supply of Generic Medicines
India continues to be the largest supplier of generic medicines globally, accounting for nearly 20% of global supply.
- Around 60,000 generic brands manufactured
- Covering 60 therapeutic categories
This dominance has strengthened India’s position as a key player in global healthcare.
Exports Grow Strongly Over the Years
Pharmaceutical exports have shown consistent growth:
- CAGR of 7% from FY15 to FY25
- Exports reached $30.5 billion in 2024-25
- Up nearly 16 times from $1.9 billion in 2000-01
This reflects India’s deep integration into global healthcare supply chains.
Strong Manufacturing and API Capabilities
India has built robust manufacturing capabilities:
- Highest number of USFDA-approved plants outside the US
- Around 500 API (Active Pharmaceutical Ingredient) manufacturers
- Contributing nearly 8% to the global API industry
These strengths enhance global confidence in the quality and safety of Indian medicines.
Vaccine Leadership Strengthens Global Role
India is also a global leader in vaccine production:
- Supplies 40–70% of global demand for DPT and BCG vaccines
- Meets 90% of WHO’s measles vaccine requirement
- Provides 60% of vaccines to UNICEF
This positions India as a critical partner in global immunisation efforts.
Policy Support and Trade Agreements Boost Growth
The sector’s growth has been driven by:
- Strong government initiatives
- Rising foreign investment
- Improved regulatory frameworks
Proposed and ongoing trade agreements with:
- European Union
- United Kingdom
- New Zealand
are expected to further enhance market access and export opportunities.
Focus on Affordability, Innovation and Quality
Efforts to improve:
- Drug affordability
- Innovation and R&D
- Quality standards
- Regulatory oversight
have strengthened public health outcomes and boosted global trust in Indian pharma products.
A Key Pillar of India’s Economic Growth
With strong exports, manufacturing strength, and global demand, India’s pharmaceutical industry is poised to play a crucial role in economic growth and global healthcare delivery in the coming years.
