India’s pharmaceutical sector is witnessing robust growth, driven by rising global demand, the introduction of innovative products, and strong policy support from the government.
Having grown at over 10% annually for the past five years, the industry recorded a turnover of Rs 4,17,345 crore in 2023–24. According to India Ratings, a Fitch Group company, pharma sector revenue likely rose 7.8% year-on-year in April 2025.
India now ranks third globally in pharmaceutical production by volume and 14th by value. It has become a major player in supplying affordable vaccines and generic medicines—accounting for 20% of the world’s generic drug supply. The country meets 55–60% of UNICEF’s vaccine requirements, supplies 99% of the WHO’s DPT (Diphtheria, Pertussis, Tetanus) vaccine demand, 52% of BCG vaccines, and 45% of measles vaccines.
In 2023–24, the sector attracted Rs 12,822 crore in foreign direct investment. With 100% FDI permitted in medical devices and greenfield pharma projects, India continues to solidify its position as a global pharma hub.
Much of this success is credited to targeted government schemes that promote affordability, boost local manufacturing, and strengthen supply chains.
Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), 15,479 Jan Aushadhi Kendras now offer generic medicines at prices up to 80% lower than their branded counterparts. For instance, a heart medicine that once cost Rs 500 is now available for as little as Rs 100.
The government’s Production Linked Incentive (PLI) scheme for pharmaceuticals, with an outlay of Rs 15,000 crore, supports 55 projects aimed at producing high-end drugs, including treatments for cancer and diabetes.
A separate PLI scheme worth Rs 6,940 crore focuses on the production of key raw materials such as Penicillin G, helping reduce India’s reliance on imports.
Another PLI initiative, with Rs 3,420 crore allocated to medical devices, is boosting the domestic manufacturing of equipment like MRI machines and heart implants.
The Promotion of Bulk Drug Parks scheme, backed by Rs 3,000 crore, is establishing major pharma manufacturing hubs in Gujarat, Himachal Pradesh, and Andhra Pradesh to enhance efficiency and lower production costs.
Additionally, the Rs 500 crore Strengthening of Pharmaceuticals Industry (SPI) scheme is helping upgrade labs and fund R&D, enabling Indian companies to compete more effectively in global markets.
From affordable generic medicines to vital vaccines reaching the world’s most underserved regions, India’s pharmaceutical sector is not only saving lives but also building a healthier, more self-reliant future—both for the country and for the world.
