New Delhi- The Indian pharmaceutical sector witnessed a decisive shift in 2025, driven by major GST reforms and the introduction of the Research Development Incentive (RDI) Scheme, with industry leaders describing the year as a turning point for long-term growth. Experts said innovation and wider access to healthcare will be central to the sector’s expansion in 2026.
Over the last 25 years, India’s pharmaceutical industry has expanded from a $3 billion market to nearly $60 billion. According to industry stakeholders, the next phase of growth will be defined by higher-value innovation, stringent quality standards, and improved patient access.
Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, said 2025 marked a clear inflection point, reflecting India’s ambition to move up the pharmaceutical value chain. He noted that the next-generation GST reforms emerged as a major policy milestone, helping improve affordability while expanding access to medicines across the country.
Jain also highlighted the government’s emphasis on quality, particularly through the implementation of revised Schedule M guidelines, which align domestic manufacturing with global benchmarks. He added that recommendations from the High-Level Committee on regulatory reforms and ease of doing business under the Viksit Bharat 2047 vision will play a crucial role in shaping the industry’s future.
Welcoming the rollout of the PRIP scheme, Jain said the strong response from industry players marked a promising beginning. He further pointed out that Indian pharmaceutical companies are increasingly moving towards innovation, evidenced by acquisitions of high-value products, licensing agreements, and regulatory approvals for next-generation drugs.
The newly announced RDI Scheme, with a focus on biomanufacturing, was described as particularly timely, especially as drugs worth more than $300 billion are expected to lose patent protection globally over the next seven years.
Ameera Shah, President of NATHEALTH, observed that 2025 represented a shift in India’s healthcare sector from gradual progress to decisive transformation. She said the industry moved from a disease-centric approach to a wellness-oriented model, from fragmented care to integrated systems, and from basic digital adoption to advanced digital intelligence.
According to Shah, artificial intelligence evolved from a peripheral tool into a core capability, reshaping clinical workflows, strengthening diagnostics, and enhancing decision-making across the healthcare continuum. She added that hospitals, diagnostics firms, digital health companies, and med-tech providers significantly increased investments in automation, data infrastructure, and advanced technologies, treating them as essential building blocks rather than future experiments.
Looking ahead, experts said 2026 will mark the beginning of the most critical decade for healthcare and pharmaceuticals in India. Jain emphasised that the next five years will be crucial for execution, converting policy momentum into tangible outcomes and supporting India’s ambition to build a $450–500 billion life sciences industry by 2047.
With several key drugs nearing patent expiry, new care delivery models emerging, and the government advancing talks on multiple free trade agreements, India is well positioned to expand both domestic access and global leadership.
Shah concluded that the challenge for the coming year lies in translating technological potential into measurable health outcomes, ensuring that innovation not only improves efficiency but also promotes equity and better patient care.
With inputs from IANS