Pharmaceuticals

India's pharmaceutical sector is driven by a robust scientific and technological base, leading globally as the largest vaccine producer, accounting for ~60% of global vaccine production and supplying to over 150 countries. Major segments of the pharma sector in India include generic drugs, OTC medicines, bulk drugs, vaccines, contract research and manufacturing, biosimilars and biologics. With pharma exports standing at $30.4 Bn in FY 2024–25 and the USA and Europe being the largest export destination for Indian pharmaceuticals, the industry is propelled by an ambition to achieve a $450 Bn market by 2047. The pharmaceutical manufacturing landscape and India's economic growth potential attract investments into the sector, making the pharmaceutical sector the ninth largest segment in attracting FDI inflows till March 2025. 

With 9 of the world’s top 25 generic manufacturers being Indian, India manufactures 500+ Active Pharmaceutical Ingredients (APIs) and produces 60,000 generic brands across 60 therapeutic categories. In FY 2024–25, India’s pharmaceutical exports reached $30.4 Bn, with imports at $8.9 Bn, resulting in a positive trade balance of $21.5 Bn. Exports span 200+ countries, with top destinations including North America (especially the USA), Latin America, Europe, and Africa, and the majority of exports fall under drug formulations and biologicals.

India is the world’s largest provider of generic medicines, accounting for 20% of the global supply. Every year, almost half  of finished generic dosage forms manufactured in India are exported. The country is also a global vaccine powerhouse, fulfilling 60% of global demand and supplying vaccines to 150+ countries, including 301 Mn COVID-19 doses to 101 countries by mid-2023. India remains a global leader in BCG, DPT, and measles vaccines.

The country is also making significant strides in biosimilars development, with over 200 in the pipeline. Reforms such as the 2019 New Drug and Clinical Trial Rules have streamlined regulatory timelines, while India’s demographic diversity and infrastructure strength have made it the 3rd most preferred destination for clinical trials globally. With over 94,000 clinical trials registered by 2025, India’s pharmaceutical sector continues to drive cost-effective innovation, ensuring access to affordable and high-quality healthcare worldwide.