India’s Pharmaceuticals Sector

India’s Pharmaceuticals Sector
  • Context:

  • The Union Minister of State for Science and Technology recently highlighted India's rapid evolution into a robust pharmaceutical economy.

  • Speaking at a recent Healthcare Summit, the Minister emphasized a strategic shift from import dependence to self-reliant healthcare growth, driven by the core themes of "Made in India" and "Quality".

  • Key Facts:

  • The Indian pharmaceutical industry currently ranks as the 3rd-largest globally by volume and the 11th-largest by value.

  • The domestic market size currently stands at USD 60 billion and is aggressively projected to reach USD 130 billion by 2030.

  • The annual turnover of the sector reached ₹4.72 lakh crore in FY25.

  • India exports pharmaceuticals to 191 countries.

  • Pharma exports stood at a massive USD 30.5 billion in 2024-25, representing a nearly 16-fold increase from USD 1.9 billion in 2000-01.

  • The sector continues to attract significant global capital, registering Foreign Direct Investment (FDI) inflows of ₹13,193 Crore in the current financial year 2025-26 (up to September).

  • Initiatives:

  • National Medical Device Policy 2023:

  • While India is a giant in pharmaceuticals, it currently holds only about 1.5% of the global medical device market.

  • The government is actively working to expand this share significantly under the National Medical Device Policy 2023, aiming to make India a top global manufacturing hub.

  • Biopharma SHAKTI:

  • To position India as a premier global biopharmaceutical manufacturing hub, the Union Budget 2026-27 proposed the Biopharma SHAKTI initiative.

  • This ambitious program is backed by a total outlay of ₹10,000 Crore over the next five years.