Indian Pharmaceutical Industry: A Comprehensive Industry Analysis Report | Scrolls

by KarNivesh | 17 August, 2025

Indian Pharmaceutical Industry A Comprehensive Industry Analysis Report- Scrolls.pdf

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Overview of the Indian Pharmaceutical Industry

India’s pharmaceutical industry is one of the fastest-growing sectors in the global healthcare landscape. Valued at ₹5.08 trillion (₹4.83 lakh crore) in 2024, the market is expected to reach ₹15.25 trillion (₹14.5 lakh crore) by 2033, with a strong CAGR of 11.32%. India ranks third globally by volume and 14th by value, contributing over 20% of global generic drugs and 60% of global vaccines, justifying its position as the “Pharmacy of the World.”

The industry is vast, consisting of around 3,000 drug companies and 10,500 manufacturing units. Its product portfolio spans generic drugs (71% share), biosimilars (8%), over-the-counter medicines (7%), APIs (6%), and medical devices (5%). Chronic disease therapies such as cardiac (10.7% growth) and anti-diabetic (6.9% growth) drive demand.

Global Market Presence

India has a dominant global footprint: it supplies 40% of U.S. generic demand, 25% of U.K. medicines, and over 50% of Africa’s generics. With 752 USFDA-approved and 2,050 WHO-GMP certified facilities, India maintains strong global regulatory compliance. Exports remain a growth engine, rising from ₹1.58 lakh crore (₹1.43 lakh crore) in 2018 to ₹2.23 lakh crore (₹2.03 lakh crore) in 2024 at a CAGR of 8%.

Growth Potential and Emerging Segments

By 2030, the market is projected to touch ₹11.38 trillion (₹12.05 lakh crore), with long-term potential of ₹39.38 trillion (₹41.6 lakh crore) by 2047 under Vision Pharma 2047. The biosimilars segment is booming, expected to rise from ₹262.5 billion (₹2,776 crore) in 2024 to ₹875 billion (₹9,263 crore) by 2030.

Investment & Policy Support

The government’s PLI scheme (₹25,360 crore outlay) has attracted investments worth ₹37,306 crore, generating sales of ₹2,66,528 crore. In 2024, the sector saw 31 M&A deals worth ₹20,125 crore (₹20,691 crore), with major transactions like Mankind Pharma’s ₹14,000 crore acquisition of Bharat Serums & Vaccines. FDI inflows stood at ₹20,484 crore (₹21,021 crore).

SWOT Insights

• Strengths: Cost-effective production (20–30% lower), skilled workforce, strong compliance, and global generic leadership.

• Weaknesses: Heavy dependence on China for APIs (70–80%), low R&D spending (10% of revenue), and price control pressures.

• Opportunities: Growing biosimilar demand, AI-driven R&D, and emerging markets in Africa, Latin America, and Southeast Asia.

• Threats: Regulatory scrutiny, patent expiries, and supply chain risks from China.

  
  

Future Outlook

By 2047, India aims to transition from “Pharmacy of the World” to “Pharma Powerhouse.” Growth will be fueled by expanding healthcare access, digital transformation, ESG adoption, and global market expansion. However, reducing API dependency, boosting R&D, and addressing compliance gaps remain crucial for sustained growth.