Business

Indian Pharma Sector Sees Strong Growth; Faces Emerging Challenges

According to a report by McKinsey & Company, India’s pharmaceutical sector has continued to grow at a strong pace, with an 8% compound annual growth rate (CAGR) and a 9% increase in exports in 2024.

The sector’s expansion is driven by rapid growth in production, particularly in active pharmaceutical ingredients (APIs) and biotechnology.

The 8% CAGR achieved by India’s pharma sector is double the global average, making it one of the fastest-growing industries in the world.

India is now the largest supplier of generic medicines globally, accounting for over 40% of the generic medicines supplied to the US and 25% to the UK.

The country also supplies more than 60% of the world’s vaccines and 70% of global antiretroviral drugs used for HIV treatment.

This growth in exports has contributed to India’s 9% increase in pharmaceutical exports, nearly twice the global rate.

India is also making strides in emerging drug modalities such as mRNA, cell and gene therapies, and antibodies, with these areas growing at a 13-14% CAGR, outpacing conventional drug production.

The report highlighted India’s growing network of high-quality pharmaceutical manufacturing sites, including:

  • 752 US Food and Drug Administration (USFDA)-approved plants,
  • 2,050 World Health Organization Good Manufacturing Practice (WHO GMP)-certified plants, and
  • 286 European Directorate for the Quality of Medicines (EDQM)-approved facilities

Additionally, compliance within the industry has significantly improved.

The incidence of ‘official action indicated’ (OAI) following USFDA inspections has dropped by 50% over the last decade, from 2013-14 to 2023-24.

The report also noted a growing focus on sustainability, with 10 of India’s top 20 pharma companies committing to reduce their emissions by over 30% by 2030.

Challenges Facing By The Pharmaceutical Sector

However, despite this progress, the industry faces several challenges.

Disruptions like digital transformation, automation, and the rise of new treatment methods could dramatically reshape pharmaceutical operations.

Geopolitical shifts, nearshoring trends, and increasing sustainability requirements may also pose risks to the sector.

Vishnukaant Pitty, Partner at McKinsey & Company stated, “India’s pharmaceutical industry stands strong today because of what it has built over the last decade.”

“With disruptions on the horizon, it is crucial for the industry to embrace these strategic themes and fundamentally transform operating model to unlock a high-performance future,” he further added.

Also Read: Domestic Air Traffic Sees 11.28% Growth In January 2025

Mankrit Kaur

Recent Posts

Hina Khan Hails 11 Years Of PM Modi’s Leadership; Highlights National Progress

As the nation marks 11 years under PM Modi's leadership, actress Hina Khan shares her…

2 hours ago

Subhash Ghai Hails PM Modi’s Transformative Vision For India

Subhash Ghai has praised PM Narendra Modi’s leadership for catalysing India’s growth and changing the…

3 hours ago

India & Central Asia Boost Rare Earth Cooperation At Delhi Meet

India and five Central Asian nations have agreed to deepen cooperation on rare earths and…

3 hours ago

PM Modi’s Beej Se Bazaar Tak Vision Reshapes Indian Agriculture

Prime Minister Modi has redefined Indian agriculture with the ‘Beej Se Bazaar Tak’ vision, transforming…

4 hours ago

EV Sales Cross 4% Mark In May; Signalling Steady Shift To Green Mobility

EV sales topped 4% of passenger vehicle retail in May 2025, signalling growing demand for…

4 hours ago

Self-Reliant Defence Industry Marks India’s Strategic Security Ascent

One year into Modi 3.0, reforms have reduced poverty, strengthened defence, and accelerated the digital…

4 hours ago