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India's Pharma Slump: 3 Years of Muted Growth Amid Market Shifts

India's pharmaceutical market is stuck in a prolonged phase of slow growth. A new Nomura report shows it grew just 9.1% in November, continuing a three-year trend of single-digit expansion. The real concern is the tiny 0.6% volume growth, meaning people aren't actually buying much more. While big companies are doing slightly better, even major brands are struggling to keep pace with the sluggish market.

Key Points: India Pharma Market Growth Stays Muted for 36 Months Nomura

  • IPM grew 9.1% year-over-year in November 2025, showing a modest slowdown
  • Volume growth was a low 0.6%, highlighting weak underlying demand momentum
  • Top 10 companies outperformed the overall market, gaining share from smaller players
  • Growth of top 40 key brands lagged behind the broader market's performance
2 min read

India Pharma market stays muted in November, marks 36 months of single-digit growth: Nomura

Nomura reports India's pharmaceutical market grew 9.1% in Nov 2025, marking 36 months of single-digit growth amid slow demand and shifting market shares.

"IPM growth has remained in single-digits for the past 32 months - Nomura Report"

New Delhi, December 10

The growth of the Indian pharmaceuticals market (IPM) continues to remain muted in November, staying in single-digit territory for the past 32 months, Nomura said in its latest report.

The report highlighted that the India pharmaceuticals market (IPM) grew 9.1 per cent year-over-year (y-o-y) (in terms of sales) in November 2025, reflecting a modest slowdown from the previous month, but still indicating some recovery in the recent past.

It stated "The India pharmaceuticals market (IPM) grew 9.1 per cent y-y (in terms of sales) in Nov-2025....... IPM growth has remained in single-digits for the past 32 months".

According to the report, the IPM recorded price growth of 5.5 per cent, while new products contributed 2.9 per cent to the y-y growth. Volume growth remained low at 0.6 per cent y-y, highlighting slow demand momentum in the market.

The report noted that except for the double-digit growth seen in October 2023 due to seasonal variations, the IPM growth has stayed within single digits for nearly three years.

It reiterated that the growth rate of branded generics continues to be impacted by market share gains by trade generics, generics, and private-label medicines.

These segments have increasingly captured demand, limiting the expansion of branded generic products in the domestic market.

The report highlighted that the top-10 companies in terms of MAT Nov-2025 are performing better than the overall market.

The Moving Annual Total (MAT) is the total value of sales (or another variable) over the immediately preceding 12 months, ending in the month specified.

These companies recorded y-y sales growth of approx. 9.5 per cent for MAT Nov-2025 compared to 8 per cent y-y growth seen in the IPM.

The report believed that greater regulatory control over product quality and marketing practices supported market share gains of larger players, helping them stay ahead of the broader industry trend.

However, performance among key brands remained below market growth. In Nov-2025 and MAT Nov-2025, the top-40 brands on an aggregate basis recorded y-y growth of 5.4 per cent and 7.0 per cent, respectively, trailing behind IPM growth of 9.1 per cent and 8.0 per cent.

It said that while the 9.1 per cent y-y growth in November reflects a moderate slowdown from the previous month, it still signals some recovery in recent months.

- ANI

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Reader Comments

R
Rajesh Q
Not surprising at all. In my medical store, I see more customers asking for trade generics or the cheaper options. Branded medicines are becoming too expensive. People are feeling the pinch. The shift mentioned in the report is happening on the ground every day.
A
Aman W
On a positive note, it's good that the top 10 companies are doing better than the market. Stronger regulation ensuring quality is a welcome step. We need reliable medicines, even if they are generic. Hope this trend pushes all players to maintain high standards. 👍
S
Sarah B
Interesting data. The fact that the top 40 brands are growing slower than the overall market is a big revelation. It shows the power is shifting away from just big brands. Consumers are becoming more value-conscious, which is a healthy sign for a competitive market.
V
Vikram M
While cost-saving is important, I have a respectful criticism. We must not compromise on quality for cheaper prices. The report says regulation is helping bigger players, but what about the smaller generic manufacturers? Need strict oversight across the board. Jai Hind!
K
Kavya N
This muted growth reflects the overall economic sentiment. When household budgets are tight, healthcare is an area where people cut costs by opting for cheaper alternatives. Hope the "recovery" mentioned gains momentum next year. Our pharma sector is a global champion, it should do better domestically too.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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