Pharmaceuticals: India's Expanding Role in Global Healthcare

India’s Pharmaceutical Industry Strengthens Global Position, Eyes $130 Billion Market by 2030​

Sector Ranks Third Globally by Volume with Expanding Manufacturing Base​

New Delhi, March 21: India’s pharmaceutical industry continues to solidify its position as a globally integrated and policy-supported sector, now ranking third in the world by volume and 11th by value, according to an official factsheet released on Saturday.

The country’s pharma ecosystem includes more than 3,000 companies and over 10,500 manufacturing units, reflecting its extensive production capacity and scale.

Domestic Market Growth and Strong Financial Performance​

India’s domestic pharmaceutical market, currently valued at $60 billion, is projected to more than double and reach $130 billion by 2030, indicating sustained long-term growth.

As per the Economic Survey 2025-26, the sector recorded an annual turnover of ₹4.72 lakh crore in FY25. Pharmaceutical exports have also maintained steady momentum, growing at a compound annual growth rate of 7 percent between FY15 and FY25.

Global Leadership in Generic Medicines and APIs​

India remains the largest global supplier of generic medicines, contributing nearly 20 percent of the world’s supply. The country manufactures around 60,000 generic brands across 60 therapeutic categories, underlining its dominance in affordable healthcare solutions.

The industry also has a strong presence in the active pharmaceutical ingredient segment, with approximately 500 API manufacturers accounting for about 8 percent of the global API market.

Policy Support, Innovation, and Trade Agreements Boost Growth​

The growth trajectory of the sector is supported by strong manufacturing capabilities, rising exports, increasing foreign investment, and targeted government initiatives. These factors have helped reduce import dependence while strengthening India’s global footprint.

Simultaneously, policy measures aimed at improving affordability, encouraging innovation, ensuring quality standards, and enhancing regulatory oversight have strengthened public health outcomes and boosted global trust.

Ongoing and recently concluded trade agreements with the European Union, the United Kingdom, and New Zealand are expected to further accelerate growth by expanding market access and deepening international trade linkages.

USFDA Approvals and Vaccine Leadership Reinforce Global Trust​

India hosts the highest number of United States Food and Drug Administration approved manufacturing plants outside the United States, highlighting international confidence in the quality and safety of Indian pharmaceutical products.

The country is also a global leader in vaccine production, particularly for Diphtheria, Tetanus, and Pertussis, Bacillus Calmette-Guerin, and measles vaccines.

Indian manufacturers supply around 60 percent of vaccines to UNICEF, meet 40 to 70 percent of global demand for DPT and BCG vaccines, and account for 90 percent of the World Health Organization’s measles vaccine requirements.

Exports Surge Reflect Deep Global Integration​

India’s pharmaceutical exports reached $30.5 billion in 2024-25, marking a sharp rise from $1.9 billion in 2000-01, reflecting a nearly 16-fold increase.

This sustained export growth highlights the sector’s deep integration into global healthcare supply chains and reinforces its role as a key contributor to international healthcare systems.