Amid the growing burden of non-communicable diseases and ageing population, the pharmaceutical sector has thrived tremendously over the recent years. Industry leaders maintain that the Indian pharmaceutical industry will likely grow 9-11 per cent in 2025-26 (FY26).
According to a report by Mint, the price hikes, new domestic launches, and increased export demand from regulated markets are some of the key factors contributing to this growth. Moreover, the centre’s production-linked incentive (PLI) scheme for the pharma industry has benefited the sector significantly.
Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA) told Financial Express.com that the industry is estimated to be USD 58 billion, with equal contributions from exports and domestic market.
“India is the manufacturing hub of the world with 20% contribution to global generics sales. 2024 has been a year of building on a robust foundation with sustainable growth and thrust on simplifying regulations and harmonization with global standards. The Production Linked Incentive (PLI) Schemes aimed at self-reliance and making global champions from India have started seeing dividends with the launch of green-field projects for the production of Penicillin G and Clavulanic acid among others. This is important for healthcare security and facilitating a diversified supply chain,” Jain explained.
He also highlighted that quality is a fundamental license to operate in the pharma sector. The Revised Schedule M implementation will strengthen the Quality landscape. The government’s support, including technological assistance and awareness programs, has been playing a vital role in moving forward the Quality agenda, he said.
“Furthermore, India hosted the International Conference of Drug Regulatory Authorities (ICDRA) that brought together regulatory authorities from WHO Member States to strengthen collaboration and develop international consensus on regulatory priorities,” he informed.
According to Jain, innovation will continue to be a major focus going forward. The government is expected to soon announce the operational details of the Promotion of Research and Innovation Programme that will spur innovation, he revealed.
“Leading companies are increasing their focus on speciality portfolios, diversifying into higher-value drugs. Discovery products such as Nafithromycin and Saroglitazar should propel the wave of research from India. Committees for streamlining regulatory reforms have been set up that will help create an enabling ecosystem for R&D,” he said.
Role of India’s CDMOs
Additionally, the industry is set to make notable progress in cutting-edge areas such as CAR-T cell therapy, mRNA vaccines, and the development of complex molecules, which hold immense potential for driving future growth.
“The patent expiries of blockbuster biologics by 2025 present a significant growth avenue in the global biosimilars market. Additionally, India’s Contract Development and Manufacturing Organizations (CDMOs) are emerging as preferred partners for biologics manufacturing, driven by their cost advantages, robust regulatory compliance, and technical expertise. To capitalize on these opportunities, the industry will continue to focus on building a strong innovation pipeline, enhancing regulatory compliance, and expanding global market,” Jain told Financial Express.com.
Indian pharma market is expected to move up to USD 120-130 Billion by 2030 from its current size of USD 58 Billion. “Initiatives in terms of quality, innovation, and wider global reach, will help the India Pharma sector to realize the potential. Given the conducive policies and the advantage of demographic and digital talent, India will play a pivotal role in advancing global health for all in years to come,” he added.
Impact of Uniform Code of Pharmaceutical Marketing Practices (UCPMP)
The year 2024 has been a defining moment for India’s healthcare sector, laying a strong foundation for a transformative shift toward innovation and patient-centricity.
“Milestone initiatives such as the expansion of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY) and the PRIP scheme to boost domestic manufacturing of key starting materials (KSMs) and APIs, reflected the government’s commitment to building an inclusive healthcare ecosystem in 2024,” Anil Matai, Director General, Organisation Of Pharmaceutical Producers of India (OPPI) told Financial Express.com.
According to Matai, the efforts made to improve access, affordability and ethical practices continued to strengthen the foundation of the sector. “The introduction of the Uniform Code of Pharmaceutical Marketing Practices (UCPMP) emphasized the government’s commitment to transparency and ethical standards within the pharmaceutical landscape. Though the functioning SEC still requires fine-tuning, there has been significant improvement in their efficiency and structure,” he said.
As we step into 2025, the Indian pharmaceutical industry is primed for revolutionary growth, powered by the intersection of visionary government policies and industry-led initiatives, he revealed.
“Emerging technologies such as artificial intelligence, machine learning and precision medicine are poised to revolutionize drug discovery, manufacturing and patient care. Streamlined regulatory systems will facilitate the adoption of groundbreaking therapies while ensuring patient safety remains paramount. A renewed emphasis on research and innovation will position India as a global leader in delivering high-quality, affordable medicines. Collaboration among policymakers, academic institutions and industry leaders will be crucial in addressing healthcare gaps, especially in underserved areas. We anticipate that the Indian pharmaceutical market could reach approximately $120 billion by 2030, highlighting significant growth opportunities for industry players,” he told Financial Express.com.
