India's Pharma Industry Ranks 3rd Globally by Volume, Eyes $130B Market

The domestic pharmaceutical market, valued at $60 billion, is projected to reach $130 billion by 2030.

According to the Economic Survey 2025-26, in FY25, the sector's annual turnover reached Rs. 4.72 lakh crore, with exports growing at a CAGR of 7 per cent over the last decade (FY15 to FY25).

"India is the largest global supplier of generic medicines, accounting for around 20 per cent of global supply, manufacturing about 60,000 generic brands across 60 therapeutic categories," according to the fact sheet.

Strong manufacturing capabilities, rising exports, growing foreign investment, and targeted government schemes have collectively strengthened domestic production, reduced import dependence, and expanded global market presence.

At the same time, initiatives promoting affordable access, innovation, quality assurance, and regulatory oversight have reinforced public health outcomes and international confidence.

Moreover, the proposed and recently concluded trade agreements with the European Union, the United Kingdom, and New Zealand are expected to further strengthen India's pharmaceutical and medical devices sector.

"These agreements will expand market access and deepen India's global trade linkages in the sector. Together, these elements position India's pharmaceuticals on a stable, forward-looking trajectory, supporting sustained growth, global engagement, and long-term resilience," said the factsheet.

Notably, India hosts the highest number of manufacturing plants approved by the United States Food and Drug Administration (USFDA) outside the US, reinforcing international confidence in the safety and quality of Indian pharmaceuticals.

There are about 500 active pharmaceutical ingredient (API) manufacturers, accounting for nearly 8 per cent of the global API industry.

India is also the global leader in the supply of Diphtheria, Tetanus, and Pertussis (DPT), Bacillus Calmette-Guerin (BCG), and measles vaccines.

The country manufacturers provide about 60 percent of vaccine supplies to the United Nations International Children's Emergency Fund (UNICEF), meet 40-70 per cent of global demand for DPT and BCG vaccines, and account for 90 per cent of the World Health Organization's (WHO) measles vaccine demand.

This highlights the robustness of Indian pharmaceutical exports and their substantial integration within global healthcare supply networks.

In 2024-25, pharmaceutical exports stood at $30.5 billion, a nearly 16-fold increase from $1.9 billion in 2000-01.

- IANS