Pharmaceuticals

India built its pharma industry on world-class generic manufacturing. It is now the third-largest producer by volume, the largest supplier of generic medicines (~20% of global volume) and the biggest vaccine maker, producing over 60% of the world's vaccines. Exports grew from ~$12 billion in 2014 to $30.47 billion in 2024-25 and $31.12 billion in 2025-26, reaching 200+ countries.

India has the most US-FDA-approved plants outside the US, and its low-cost HIV, TB and COVID medicines and vaccines have saved millions of lives globally. Schemes like Jan Aushadhi (affordable generic stores) cut medicine costs at home, and a PLI scheme aims to bring bulk-drug (API) production back from China. Industry is now moving from generics toward biosimilars and complex drugs.

India earned the name 'pharmacy of the world' by mastering generics — making low-cost copies of drugs once their patents expire, at enormous scale. It is the world's largest supplier of generic medicines by volume and a major source of affordable vaccines. The next frontier is upstream: a dedicated PLI scheme for active pharmaceutical ingredients (APIs) is bringing production of the chemical building blocks back home, with bulk-drug parks in three states already commissioned.

Two directions define the decade. First, self-reliance in APIs — a PLI scheme for bulk drugs aims to rebuild the domestic chemistry India lost to China. Second, moving up the value chain — from cheap generics toward patented drugs, biosimilars, complex generics and contract research — so India captures more value, not just volume, while keeping its quality and regulatory standards world-class.

~$12 → $31.12 bn pharma exports (2014 → 2025-26, quick estimates). ~20% of world's generics; ~60% of vaccines. 3rd by volume. Domestic market ~$60 bn. Sources: Pharmexcil, Department of Commerce, Economic Survey.