India Pharmaceutical Market

India Pharmaceutical Market Size and Trends:

The India pharmaceutical market size was valued at USD 61.36 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 174.31 Billion by 2033, exhibiting a CAGR of 11.32% from 2025-2033. The market is a leading global supplier of affordable medicines, driven by robust generics production, a skilled workforce, and cost-efficient manufacturing. Additionally, increasing domestic healthcare demand, government support for local API production, and advancements in biotechnology position the industry as a cornerstone of innovation and growth in healthcare solutions.

The India pharmaceutical market functions through its powerful generic drug production together with economical production systems and competent workforce. The amplifying prevalence of chronic diseases, such as diabetes and cardiovascular conditions, is facilitating the demand for cost-effective medications. For instance, the share of chronic therapeutic drugs in the Indian pharmaceutical market rose to 38.1% in the 12 months leading up to January 2024, indicating a significant demand for chronic disease medications. Moreover, the domestic market growth continues to rise because of enhanced healthcare awareness along with better access to medical services among rural populations. India also gains strength internationally as a pharmaceutical supplier as it provides high-quality medicines at competitive prices.

Government initiatives, such as the Production-Linked Incentive (PLI) scheme, acts as another significant factor and are encouraging local API manufacturing, reducing import dependency, and boosting industry self-reliance. Investments in biotechnology and research are driving innovation in biosimilars and specialized therapies and boosting the India pharmaceutical market growth. For instance, in 2024, the Government of India (GoI) allocated ₹1,000 crore to accelerate innovation in biotechnology, fostering advancements in cutting-edge healthcare solutions. These investments, coupled with initiatives to attract private and foreign funding, are enhancing the pharmaceutical ecosystem. Furthermore, expanding healthcare infrastructure and regulatory reforms are further strengthening the industry’s growth trajectory, positioning India as a global pharmaceutical leader.

India Pharmaceutical Market Trends: 

Rising Focus on Self-Reliance in API Production

India is making strategic strides toward reducing dependency on imported Active Pharmaceutical Ingredients (APIs). Government initiatives, such as the Production Linked Incentive (PLI) scheme, aim to strengthen domestic API manufacturing and promote indigenous production of key starting materials. For instance, in the first half of FY25 (April-September 2024), the Indian government allocated Rs. 604 crore (USD 69.76 million) under the Production-Linked Incentive (PLI) scheme for the pharmaceutical sector. Additionally, this shift is not only enhancing supply chain resilience but also fostering greater self-reliance in critical areas of the pharmaceutical industry. By encouraging investment in state-of-the-art manufacturing facilities and supporting innovation, India is bolstering its capacity to meet growing domestic and international demands.

Growth in Biologics and Biosimilars

Biologics and biosimilars are emerging as significant growth drivers in India’s pharmaceutical market. Increased funding for innovation and development empowers local firms to produce cost-effective substitutes for sophisticated biologic medicines. These advancements are addressing unmet medical needs in areas like oncology, autoimmune diseases, and diabetes. With India’s expertise in cost-effective production, biosimilars are also becoming an attractive segment for export. For instance, according to industry reports, the biosimilars market in India is expected to grow at a CAGR of 22%, reaching USD 12 billion by 2025, representing nearly 20% of the country’s pharmaceutical market. As regulatory frameworks evolve, the sector is poised for sustained growth, driven by both domestic adoption and international market opportunities.

Digital Transformation in Pharmaceutical Operations

Digital technologies are reshaping India’s pharmaceutical industry, improving efficiencies in manufacturing, supply chain, and patient care. Organizations are progressively leveraging automation, AI technologies, and advanced data analysis to optimize processes and improve the standard of their offerings. In parallel, the rise of telemedicine and e-pharmacies is transforming how medications reach consumers, making healthcare more accessible. Moreover, advancements in digital technology are enhancing adherence to regulatory standards while promoting innovation within the pharmaceutical development process. For instance, according to industry reports, to strengthen innovation and R&D, 79% of pharma leaders highlight AI/ML adoption for improving efficiency in drug discovery and clinical development, while 50% emphasize regulatory simplification as key to driving growth and innovation. Furthermore, the integration of technology across the value chain is establishing India as a forward-looking, technologically advanced pharmaceutical hub. 

India Pharmaceutical Industry Segmentation: 

 IMARC Group provides an analysis of the key trends in each segment of the India pharmaceutical market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type and nature. 

 Analysis by Type: 

• Pharmaceutical Drugs
  • Cardiovascular Drugs
  • Dermatology Drugs
  • Gastrointestinal Drugs
  • Genito-Urinary Drugs
  • Hematology Drugs
  • Anti-Infective Drugs
  • Metabolic Disorder Drugs
  • Musculoskeletal Disorder Drugs
  • Central Nervous System Drugs
  • Oncology Drugs
  • Ophthalmology Drugs
  • Respiratory Diseases Drugs
• Biologics
  • Monoclonal Antibodies (MAbS)
  • Therapeutic Proteins
  • Vaccines

Pharmaceutical drugs lead the segments because it provides healthcare solutions across the country. The segment maintains strong growth characteristics due to higher health awareness levels, wider accessibility, and rising cases of both chronic and acute disorders. The strength of this market is enhanced by government initiatives to expand healthcare infrastructure and pharmaceutical sector concentration on innovation development. Furthermore, the combination of research funding and improved manufacturing systems has improved both the availability and price accessibility of drugs. For instance, in September 2023, the Government of India (GoI) launched a Rs 5,000 crore scheme to promote R&D in the pharmaceutical and medical technology sectors. The initiative includes funding over Rs 1,100 crore across nine pharmaceutical companies to conduct research in six priority areas in collaboration with academic institutions.

Analysis by Nature: 

• Organic
• Conventional

The magnifying utilization of conventional drugs in treating a wide range of acute and chronic diseases, making them a leading segment in the industry. Small molecule drugs maintain their popularity because they offer widespread availability and established efficacy at affordable prices, which functions as the base medication for healthcare solutions across the country. For instance, in 2024, India’s Central Drugs Standard Control Organization (CDSCO) approved 19 new drugs, including first-in-class drugs for chronic diseases like cancer, developed by global pharmaceutical companies. Additionally, the segment benefits from India’s robust generics manufacturing capabilities, ensuring cost-efficient production and accessibility. With strong domestic demand and significant export potential, conventional drugs continue to dominate the market, providing reliable and scalable solutions to meet diverse healthcare needs.

Regional Analysis: 

• North India
• West and Central India
• South India
• East India

According to the India pharmaceutical market outlook, North India represents the largest market segment by region, driven by its dense population, advanced healthcare infrastructure, and increasing healthcare awareness. Additionally, the region experiences strong demand for pharmaceutical products due to the rising prevalence of chronic diseases and improved access to medical services across urban and rural areas. For instance, in 2024, Delhi’s Mohalla clinics, a flagship initiative by the state government, recorded 1.39 crore appointments, contributing to North India's healthcare and pharmaceutical infrastructure. Its strategic location and robust logistics network further enhance the efficiency of distribution and supply chains, catering to domestic and international markets. 

Competitive Landscape:

The India pharmaceutical market is highly competitive, with a mix of domestic giants and multinational companies vying for India pharmaceutical market share. Leading domestic companies control generic medicine production and formulations manufacturing through efficient operations and broad distribution systems. Multinational firms focus on specialized therapies, biologics, and patented drugs, often partnering to expand their business in Indian for local market penetration. For instance, in April 2024, Biocon Biologics and Eris Lifesciences announced a long-term collaboration to expand patient access to biosimilars in India, covering Metabolics, Oncology, and Critical Care. Intense price competition characterizes the generics market, while investments in innovation and biosimilars drive differentiation. In addition, regulatory policies, quality compliance, and the ability to meet global standards significantly influence competitiveness. Furthermore, the growing focus on local API production and advancements in R&D are reshaping the competitive dynamics of the industry.  

The report provides a comprehensive analysis of the competitive landscape in the India pharmaceutical market with detailed profiles of all major companies, including: 

• Abbott India Ltd (Abbott Laboratories)
• Aurobindo Pharma Limited
• Biocon Limited
• Cadila Pharmaceuticals Ltd.
• Cipla Ltd.
• Divi's Laboratories Limited
• Dr. Reddy’s Laboratories Ltd.
• GlaxoSmithKline Pharmaceuticals Limited (GSK plc)
• Lupin Limited
• Mankind Pharma
• Merck Life Science Private Limited (Merck KGaA)
• Novartis India Limited (Novartis AG)
• Pfizer Healthcare India Pvt. Ltd. (Pfizer Inc.)
• Procter & Gamble Health Limited (The Procter & Gamble Company)
• Sun Pharmaceutical Industries Ltd.
• Torrent Pharmaceuticals Ltd. (Torrent Group)

Latest News and Developments: 

• In January 2024, Glenmark Pharmaceuticals and Pfizer partnered to launch Abrocitinib in India. It is an oral treatment for moderate-to-severe atopic dermatitis, co-marketed as JABRYUS and CIBINQO, offering rapid itch relief and better disease management.
• In June 2024, Orchid Pharma launched Cefepime-Enmetazobactam, an antibiotic for treating cUTI, HAP, and VAP. The company collaborated with Cipla to ensure efficient distribution across India, combining Orchid Pharma’s innovation in drug development with Cipla’s network and reinforcing India’s leadership in pharmaceutical innovation.
• In December 2024, Mankind Pharma announced the acquisition of a 100% stake in Bharat Serums and Vaccines for INR 13,630 crores. This acquisition aims to enhance its leadership in women’s health, fertility, and critical care with advanced R&D platforms.
• In December 2024, Mankind Pharma and Innovent Biologics partnered to exclusively license and commercialize sintilimab, an advanced PD-1 immunotherapy, in India. This collaboration aims to enhance cancer treatment, improve patient access, and address the rising cancer burden across the country
• In December 2024, Lupin Limited announced the acquisition of Huminsulin from Eli Lilly in India, strengthening its diabetes portfolio. This strategic move reinforces Lupin's commitment to providing affordable, high-quality healthcare for managing diabetes effectively.

India Pharmaceutical Market Report Scope: 

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India pharmaceutical market from 2019-2033. 
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India pharmaceutical market. 
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India pharmaceutical industry and its attractiveness. 
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.