How India’s Pharma Sector is Powering Global Healthcare While Creating Local Impact

In a world grappling with rising healthcare costs and unequal access to essential medicines, India is quietly — and steadily — scripting a global success story. Often dubbed as the "pharmacy of the world," India's pharmaceutical sector is not just fulfilling global drug demands but also redefining how healthcare can be affordable, innovative, and inclusive.

And the numbers speak for themselves.

According to India Ratings, a Fitch Group company, India’s pharmaceutical industry registered a solid 7.8% year-on-year growth in April 2025. This performance isn’t a standalone spark. It’s part of a larger, consistent trajectory where the sector has clocked over 10% annual growth over the past five years. In FY 2023-24 alone, the industry posted a turnover of ₹4.17 lakh crore, reinforcing its position as one of the most resilient and dynamic sectors of the Indian economy.

India's Pharama Sector: Volume, Value, and Vision

India currently ranks third globally in terms of volume and fourteenth in terms of value in the pharmaceutical space. While it may seem like a dichotomy — high volume, relatively lower value — this has become India’s unique strength. The ability to produce and supply life-saving generic drugs at scale and low cost is precisely what gives India its competitive edge.

Over the past decade, the industry has evolved from being just a low-cost manufacturer to a hub of innovation. Indian pharmaceutical firms are now launching complex generics, biosimilars, and specialty drugs — a signal that the sector is moving up the value chain.

A Government That’s Backing the Science

At the core of this growth story is proactive government support, particularly in the form of strategic policies and incentives. The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) is one such initiative that has made a tangible difference to the lives of millions of Indians. Through more than 15,479 Jan Aushadhi Kendras across the country, the government is offering quality generic medicines at up to 80% lower prices than branded drugs.

Imagine this: a heart medication that once cost ₹500 is now available for ₹100. That’s not just a statistic; it's a life-saving shift, especially for India’s vast rural and low-income population. And it’s exactly this kind of model that global economies are now trying to replicate.

Investment That’s Building the Future

India’s pharmaceutical journey is no longer about just making more — it's about making smarter.

The Production Linked Incentive (PLI) schemes introduced by the government are aimed at making India a hub for high-value pharmaceutical manufacturing and innovation. With ₹15,000 crore allocated for pharmaceuticals, ₹6,940 crore for critical raw materials like Penicillin G, and ₹3,420 crore for medical devices, these investments are building a robust and future-ready ecosystem.

That’s not all. Under the ₹3,000 crore Bulk Drug Parks Scheme, three major manufacturing hubs are being developed in Gujarat, Himachal Pradesh, and Andhra Pradesh. These parks are designed to reduce India’s dependence on imports for raw materials, particularly from China, and to ensure supply chain resilience.

The Strengthening of Pharmaceuticals Industry (SPI) Scheme — with a budget of ₹500 crore — is another example of focused policymaking. It supports infrastructure upgrades, lab modernization, and research, ensuring that Indian pharma companies remain globally competitive in the long run.

India’s Role in Global Immunization: Numbers That Matter

India’s contribution to global vaccination efforts cannot be overstated. Consider these stats:

• 55-60% of vaccines procured by UNICEF come from India

• 99% of the global DPT (Diphtheria, Pertussis, Tetanus) vaccine demand by WHO is met by Indian manufacturers

• India supplies 52% of the world’s BCG vaccines and 45% of measles vaccines

These numbers represent lives saved — across continents, from Africa to Asia to the Americas.

Job Creation and Global Investment

Beyond the numbers, the pharmaceutical sector is a major employment generator in India. From manufacturing workers to scientists, researchers to regulatory experts, the industry is creating jobs across the value chain.

Foreign Direct Investment (FDI) tells its own story. In FY 2023-24, the pharma sector attracted ₹12,822 crore in FDI. What’s encouraging is that this influx isn’t just into big pharma giants — but also into greenfield projects and medical device startups, thanks to 100% FDI allowances in these areas.

The Atmanirbhar Pharma Dream

The government has been vocal about its vision of Atmanirbhar Bharat — a self-reliant India. Nowhere is this vision more visible than in the pharmaceutical sector.

“India’s pharmaceutical sector is not just an industry — it’s a mission,” a senior official from the Ministry of Chemicals and Fertilizers said. “From affordable Jan Aushadhi medicines to high-end biologics, India is building a healthcare model that’s inclusive, innovative, and self-reliant.”

The sector stands at a unique crossroads. It’s no longer about catching up to global peers — it’s about setting the pace. Whether it's vaccine diplomacy, making advanced cancer treatments affordable, or building the next biotech startup, India’s pharma industry is now a serious player in shaping the future of healthcare.

Looking Ahead: A Sector with Purpose

As India steps into the Amrit Kaal — the period of futuristic development envisioned by the government — the pharmaceutical sector is set to play a foundational role in building a healthier, self-reliant, and globally connected India.

With sustained policy support, a strong manufacturing base, expanding global footprint, and a clear focus on innovation, India’s pharmaceutical industry is well on its way to becoming not just the "pharmacy of the world" — but the future of it.