India's Pharmaceutical Sector: Comprehensive Industry Analysis Reports | Scrolls
- Editor
- Oct 19
- 3 min read
by KarNivesh | 19 October, 2025
India’s pharmaceutical sector has evolved from a modest supplier to becoming the world’s “Pharmacy of the World.” Valued at ₹50.9 lakh crore in 2024, the industry is projected to grow to ₹373.5 lakh crore by 2047, reflecting an impressive 11.32% annual growth rate. This makes India the third-largest producer by volume and 14th by value worldwide — supplying 60% of global vaccines, 40% of U.S. generics, and 25% of U.K. medicines.
Industry Overview and Structure
India’s pharmaceutical ecosystem includes generic medicines, APIs (Active Pharmaceutical Ingredients), biosimilars, CDMOs (Contract Development and Manufacturing Organizations), medical devices, and over-the-counter products. The market is vast — with more than 3,000 companies and 10,500 manufacturing units — forming one of the world’s most efficient production networks.
Generics dominate the market with 87% share, generating ₹2.07 lakh crore in 2024. APIs contribute ₹1.18 lakh crore, while the biosimilars segment — valued at ₹70,550 crore — is expanding rapidly at 22% CAGR. Meanwhile, India’s CDMO market is worth ₹1.87 lakh crore, expected to double by 2029, boosted by global firms shifting production from China.
Market Performance and Growth Drivers
The Indian pharma market is balanced between domestic and export demand. In 2024, ₹19.5 lakh crore came from domestic consumption and ₹22 lakh crore from exports. By 2030, the total market could reach ₹107.9 lakh crore, supported by strong policy initiatives like the PLI Scheme, Bulk Drug Parks, and Pharma Vision 2030.
India’s global competitiveness comes from cost-efficient manufacturing, skilled scientists, and strong compliance. With 752 USFDA-approved facilities and 2,050 WHO GMP-certified units, India has the largest number of internationally approved plants outside the U.S.
Key Players and Market Leaders
The top 10 companies control 60% of India’s pharma market. Sun Pharmaceutical Industries leads with ₹4.03 lakh crore market capitalization, followed by Cipla, Dr. Reddy’s Laboratories, and Divi’s Laboratories.Private firms like Serum Institute of India and Intas Pharmaceuticals also play crucial roles in vaccine production and specialty drugs, making India a hub of innovation and affordability.
Innovation and Technological Trends
The sector is adopting AI, digital health tools, and smart manufacturing to improve efficiency and reduce costs. Artificial intelligence is helping companies shorten drug discovery time by 30–40%. Continuous manufacturing and IoT technologies are making production more sustainable and quality-focused.
India’s biotechnology sector, valued at ₹1.14 lakh crore, is growing rapidly, with strong progress in mRNA vaccines, biosimilars, and gene therapies. Research and development investments are rising, with India ranking 6th globally in patent filings.
Opportunities and Challenges
The industry’s biggest opportunities lie in biosimilars, API exports, and digital health integration — areas expected to add trillions to India’s GDP by 2047. The government’s PLI schemes worth ₹25,360 crore provide incentives for local manufacturing and innovation.
However, challenges remain — such as dependence on China for raw materials, stringent global regulations, and environmental compliance costs. Strengthening domestic supply chains and improving quality consistency are key focus areas.
The Road Ahead
With its vast production capacity, technological adaptability, and supportive policies, India is set to become a global pharmaceutical powerhouse. By 2047, exports could exceed ₹186.8 lakh crore, establishing India as the preferred partner for high-quality, affordable healthcare solutions worldwide.
In summary, India’s pharmaceutical sector is not just growing — it’s transforming. The next two decades will see it evolve from the world’s medicine maker to a complete healthcare innovation hub, blending affordability, quality, and technology for global impact.
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