Let it innovate! Let it innovate! Let it innovate! Short of rewriting the classic Yuletide song thus, two separate statements shared on Christmas, are an ode to the Indian pharmaceutical industry, a recap of an eventful 2025 and it’s aspirations for the new year. Albeit both the statements issued separately hold linkages to the Indian Pharmaceutical Alliance (IPA), a platform of leading Indian pharmaceutical companies that add up to the bulk of Indian pharma exports to the world.
While the statement by Satish Reddy, Chairman, Dr. Reddy’s Laboratories, who is also the past president of the IPA says: “As India steps into 2026, with innovation emerging as the defining force for the next phase of growth, the outlook for the sector looks positive. The emphasis will continue to be on building scientific excellence, regulatory agility, and collaborative innovation, reinforcing India’s position as a trusted global partner.”
What did Sudarshan Jain say?
Sudarshan Jain, Secretary General, IPA, in a separate statement echos the focus on innovation and states: “From 2026 onwards, the coming five years will be critical in terms of execution — translating policy momentum into measurable gains for India’s ambition to become a USD 450–500 billion industry by 2047 and establish itself as a global life sciences innovation hub.” Understandably Reddy feels, “the pharmaceutical sector has a key role to play in attaining our vision of ‘Viksit Bharat’ with its own ambition of becoming a $500 billion industry by 2047.”
Both look back at 2025 as an eventful year. Satish Reddy apparently sees new enablers for growth momentum taking effect during the year. “The year 2025 has been a significant one for the Indian pharmaceutical sector. The sector witnessed several novel launches, collaborations, digital progression and structural reforms. Some of key initiatives such as the announcement of Research, Development, and Innovation (RDI) scheme and the PRIP scheme for robust R&D and novel drug delivery systems are a step in the right direction, deepening and strengthening industry academia partnership.”
He goes on to see reasons for “further impetus in terms of making risk capital more accessible, can enable India to move from being the world’s pharmacy to becoming the world’s hub for pharmaceutical innovation.”
“Despite external pressures,” he reminds, “the sector has remained steadfast in advancing healthcare frontiers, delivering life-saving medicines across the globe.”
Sector reps on GST reforms
Both Reddy and Jain hail the GST reforms: Satish Reddy says: “The year also witnessed remarkable progress in public health, with improved access to critical therapies. Further, the Next-Gen GST implementation underscored the industry’s commitment to affordability and patient-centric care and the reduction in the tax rates of life-saving drugs has benefitted many patients in India.”
Jain, who describes 2025 as a year that marks “an inflection point for Indian pharma, signalling the country’s push to move up the value chain,” says, “the landmark Next-Gen GST reform emerged as a key policy milestone, strengthening affordability and expanding patient access to medicines.”
That apart, “the government’s focus on quality, reflected in the implementation of the revised Schedule M guidelines, further reinforces India’s alignment with global standards. The High-Level Committee’s work on regulatory reforms and the ease of doing business for Viksit Bharat 2047 will set the foundation for the next phase of industry growth, he says.
Continuing on the innovation agenda, Jain says “the rollout of PRIP (Promotion of Research and Innovation in Pharma MedTech sector) received a strong response from the industry, marking a significant beginning. Encouraging signals of India’s shift towards innovation can be seen with leading Indian pharma companies acquiring higher-value products, closing licensing deals, and securing regulatory approvals for next-generation drugs.”
The newly announced Research Development Incentive Scheme, he says, “with biomanufacturing as a key focus area, is particularly timely, especially as drugs worth over USD 300 billion are set to lose exclusivity over the next seven years.”
Jain concludes with the numbers defining the sector and the growth & girth aspirations, he says: “Today, Indian pharma stands at a defining moment. In the past 25 years, the industry has grown from USD 3 billion to USD 60 billion. The next 25 years will be shaped by innovation, quality, and access.”
