India’s Pharmaceutical Industry Sees Rapid Growth And Global Recognition

India’s pharmaceutical sector continues to rise on the global stage, driven by innovation, affordability, and inclusivity.

According to India Ratings, part of the Fitch Group, the industry recorded a 7.8% year-on-year growth in April 2025, as reported by the Press Information Bureau (PIB) on Sunday.

This strong growth reflects both high domestic demand and the introduction of new products into the market.

India’s Position In Global Pharmaceutical Production

India ranks third globally in pharmaceutical production by volume and 14th by value. The country is the world’s largest supplier of generic medicines, fulfilling 20% of global demand.

Furthermore, India plays a pivotal role in vaccine production, supplying 55-60% of UNICEF’s global vaccine requirements.

In 2023–24, the sector recorded a turnover of Rs 4,17,345 crore, maintaining an annual growth rate of over 10% over the past five years.

Impact Of Pharmaceutical Growth On Access And Employment

This robust growth has brought about significant benefits, including greater access to affordable medicines and improved healthcare services.

It has also led to the creation of numerous employment opportunities across India, from urban manufacturing hubs to rural research facilities.

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The government attributes much of this success to a series of policy initiatives introduced in recent years.

Notably, the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) operates 15,479 Jan Aushadhi Kendras, offering generic medicines at prices up to 80% lower than branded alternatives.

Government Initiatives Driving Growth

The government’s proactive measures have played a key role in the sector’s expansion.

The Production Linked Incentive (PLI) Scheme for Pharmaceuticals, with an investment of Rs 15,000 crore, is supporting 55 projects aimed at producing high-value drugs for conditions such as cancer and diabetes.

Additionally, another PLI scheme worth Rs 6,940 crore focuses on the domestic production of key drug ingredients like Penicillin G, reducing the country’s reliance on imports.

A separate Rs 3,420 crore allocation under the PLI scheme for medical devices is encouraging the local production of advanced medical equipment, including MRI machines and cardiac implants.

Furthermore, the Promotion of Bulk Drug Parks scheme, which has an outlay of Rs 3,000 crore, is establishing mega hubs in Gujarat, Himachal Pradesh, and Andhra Pradesh to make medicines cheaper and faster.

Strengthening Research And Global Competitiveness

The Strengthening of Pharmaceuticals Industry (SPI) Scheme, with a budget of Rs 500 crore, is enhancing research and upgrading laboratories to help Indian companies compete globally.

These initiatives ensure that medicines are made in India for both domestic and international markets, keeping costs low while maintaining high quality.

India’s pharmaceutical industry continues to play a vital role in international healthcare.

The country supplies 99% of the World Health Organization’s demand for DPT (Diphtheria, Whooping Cough, and Tetanus) vaccines, 52% of the BCG vaccine used to combat tuberculosis, and 45% of measles vaccines worldwide.

Foreign Investment In India’s Pharmaceutical Sector

The growth of India’s pharmaceutical industry has also attracted significant foreign investment.

In 2023–24, foreign direct investment (FDI) in the sector reached Rs 12,822 crore.

India allows 100% foreign investment in medical devices and new pharmaceutical projects, making it an increasingly attractive destination for international businesses.

Conclusion: A Promising Future For India’s Pharmaceutical Industry

The continued growth of India’s pharmaceutical sector, driven by government initiatives, innovation, and strong international demand, positions the country as a global leader in affordable healthcare solutions.

With an expanding manufacturing capacity, increasing foreign investment, and a commitment to quality, India’s pharmaceutical industry is set to remain a critical player in the global healthcare market.