India’s pharmaceutical industry continues its strong growth trajectory, emerging as the third-largest globally by volume and 14th by value, according to a new report by India Ratings. With a projected growth rate of 7.8% year-on-year in April 2025, the sector shows no signs of slowing, buoyed by surging global demand and the rollout of new formulations.

The total turnover of the Indian pharma industry reached a staggering Rs 4,17,345 crore in FY 2023–24, marking a consistent growth rate of over 10% annually for the past five years. This positions India as a critical player in the global pharmaceutical landscape, responsible for 20% of the world’s medicine supply, particularly in affordable generic drugs.

“For the common man, this means more medicines at lower prices, better healthcare, and increased employment opportunities across the country—from small towns to major cities,” a government official stated.

Vaccine Powerhouse

India has further cemented its reputation as a global vaccine supplier, providing:

• 55–60% of UNICEF’s vaccine demand

• 99% of WHO’s DPT (Diphtheria, Whooping cough and Tetanus) vaccine needs

• 52% of BCG (Bacillus Calmette-Guérin is a vaccine primarily used against TB) vaccines

• 45% of measles vaccines

These contributions have had life-saving impacts across continents, from Africa to the Americas, while also generating domestic employment in manufacturing units, laboratories, and R&D facilities.

Investment Magnet

Global investors are increasingly betting on India’s pharmaceutical prowess. Foreign direct investment (FDI) into the pharma sector totaled Rs 12,822 crore in 2023–24, underlining international confidence in India’s growth and innovation capacity.

The government’s liberal policies—allowing 100% FDI in medical devices and greenfield pharma projects—have further boosted the sector's attractiveness as a global manufacturing hub.

Policy-Driven Growth

Government-led initiatives have played a significant role in this upward trend:

• Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) now operates 15,479 Jan Aushadhi Kendras across India, providing generic drugs at up to 80% lower prices. For example, a heart medication once priced at Rs 500 can now be purchased for just Rs 100.

• The Production Linked Incentive (PLI) Scheme for Pharmaceuticals, with a budget of Rs 15,000 crore, supports 55 projects focused on high-value drugs such as cancer and diabetes treatments.

• A separate PLI scheme of Rs 6,940 crore is dedicated to active pharmaceutical ingredients (APIs) and key raw materials like Penicillin G, reducing dependency on imports.

• Additionally, Rs 3,420 crore under the PLI for Medical Devices is stimulating local production of essential healthcare equipment including MRI machines and heart implants.

Looking Ahead

With robust policy backing, an expanding global footprint, and a thriving innovation ecosystem, India’s pharmaceutical sector is poised to become an even greater force in global healthcare. It is not only saving lives worldwide but also creating millions of jobs, fostering innovation, and securing India’s place as a pharmacy to the world.