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 over $30 billion by 2024-25, 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 weak link is upstream: India imports a large share of its active ingredients (APIs) — the chemical building blocks — mostly from China, which a PLI scheme now tries to bring back home.

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.

The next step is moving up the value chain — reducing reliance on China for bulk drugs (APIs), strengthening quality control and regulation, and growing from generics into higher-value innovation.

~$12 → ~$30 bn pharma exports (2014→2025). ~20% of world's generics; ~60% of vaccines. 3rd by volume. Domestic market ~$60 bn. Sources: Pharmexcil, Economic Survey.