New Delhi – India’s pharmaceutical industry, recognized as the world’s leading supplier of affordable generic medicines, is projected to grow at 7.8% year-on-year in April 2025, driven by strong demand and the launch of new products, according to India Ratings.
Globally, India’s pharma sector ranks third in terms of volume and 14th in value. It contributes approximately 20% of the world’s supply of medicines. The sector’s turnover reached ₹4,17,345 crore in 2023–24, marking steady annual growth of over 10% for the past five years.
“For the average citizen, this translates into more affordable medicines, better access to healthcare, and increased job opportunities across the country—in both cities and small towns,” a government official stated.
India has also emerged as a global leader in vaccine production. The country supplies 55–60% of vaccines procured by UNICEF, and meets 99% of the World Health Organization’s demand for the DPT (Diphtheria, Pertussis, and Tetanus) vaccine, 52% for the BCG (Bacillus Calmette-Guérin, primarily used against tuberculosis), and 45% for measles vaccines. From Africa to the Americas, Indian vaccines are saving millions of lives.
Domestically, this boom in vaccine and pharmaceutical manufacturing has created a wide range of job opportunities—from factory workers to researchers. Foreign investors are taking notice, investing ₹12,822 crore in the sector during 2023–24. The Indian government allows 100% foreign direct investment (FDI) in medical devices and greenfield pharmaceutical projects, making India a key destination for global pharma companies.
Several government initiatives have played a crucial role in supporting the sector’s growth. The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) now operates 15,479 Jan Aushadhi Kendras, offering generic medicines at prices up to 80% lower than their branded counterparts. For instance, a heart medication that once cost ₹500 is now available for around ₹100.
The Production Linked Incentive (PLI) Scheme for Pharmaceuticals, with an outlay of ₹15,000 crore, supports 55 projects to manufacture high-end drugs—including treatments for cancer and diabetes—within India. A separate ₹6,940 crore PLI scheme focuses on reducing dependence on imports by producing key raw materials like Penicillin G domestically.
Additionally, the PLI Scheme for Medical Devices, backed by ₹3,420 crore, is fostering domestic production of advanced tools such as MRI machines and cardiac implants.
To further reduce costs and boost efficiency, the Promotion of Bulk Drug Parks Scheme, with an allocation of ₹3,000 crore, is developing large-scale pharmaceutical hubs in Gujarat, Himachal Pradesh, and Andhra Pradesh. Meanwhile, the Strengthening of Pharmaceuticals Industry (SPI) Scheme, with ₹500 crore in funding, is upgrading laboratories and supporting R&D, helping Indian pharma firms compete on a global scale.
Together, these efforts ensure that medicines are made in India—not just for India, but for the world—while maintaining affordability and high quality.
With inputs from IANS