India’s Pharmaceutical Sector Sees 7.8% Growth in April, Reports Government
India’s pharmaceutical industry is experiencing significant growth, marking a notable presence on the global stage. According to India Ratings, part of the Fitch Group, the sector achieved a remarkable 7.8% year-on-year growth in April 2025, driven by strong domestic demand and the introduction of innovative products. As the third-largest producer of pharmaceuticals by volume and the largest supplier of generic medicines worldwide, India is also a key player in vaccine production, meeting a substantial portion of global healthcare needs.
Robust Growth and Market Position
The Indian pharmaceutical sector has demonstrated impressive resilience, recording a turnover of Rs 4,17,345 crore in the fiscal year 2023-24. This growth trajectory has been consistent, with the industry maintaining an annual growth rate exceeding 10% over the past five years. India ranks third globally in pharmaceutical production by volume and 14th by value, showcasing its vital role in the international market. The country meets 20% of the global demand for generic medicines and supplies between 55% to 60% of UNICEF’s vaccine requirements, underscoring its importance in global healthcare.
The government’s initiatives have played a crucial role in this growth. The introduction of new products and the expansion of existing ones have significantly contributed to the sector’s success. The strong domestic demand for affordable medicines has further fueled this upward trend, making healthcare more accessible to a larger population.
Government Initiatives and Support
The Indian government has implemented several policy initiatives to bolster the pharmaceutical sector. One notable program is the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), which operates 15,479 Jan Aushadhi Kendras. These centers provide generic medicines at prices up to 80% lower than their branded counterparts, enhancing access to affordable healthcare for millions.
Additionally, the Production Linked Incentive (PLI) Scheme for Pharmaceuticals, with an investment of Rs 15,000 crore, supports 55 projects aimed at producing high-value drugs for critical health conditions such as cancer and diabetes. Another PLI scheme, worth Rs 6,940 crore, focuses on domestic production of essential drug ingredients, including Penicillin G, to reduce dependency on imports. The government has also allocated Rs 3,420 crore under the PLI scheme for medical devices, promoting local manufacturing of advanced medical equipment.
International Impact and Investment Confidence
India’s pharmaceutical products are integral to international healthcare, supplying 99% of the World Health Organization’s demand for DPT vaccines and significant percentages for BCG and measles vaccines. This strong global presence highlights India’s commitment to improving health outcomes worldwide.
Foreign investors are increasingly confident in the Indian pharmaceutical sector. In the fiscal year 2023-24, foreign direct investment in the industry reached Rs 12,822 crore. The Indian government allows 100% foreign investment in medical devices and new pharmaceutical projects, making the country an attractive destination for international enterprises looking to invest in the healthcare sector.
Future Prospects and Challenges
The future of India’s pharmaceutical industry appears promising, with ongoing government support and a robust domestic market. The combination of innovation, affordability, and inclusivity positions India as a leader in the global pharmaceutical landscape. However, challenges such as maintaining quality standards, addressing regulatory hurdles, and ensuring sustainable growth remain critical for the sector’s continued success. As the industry evolves, it will be essential to balance these challenges with the opportunities presented by a growing global demand for affordable healthcare solutions.
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