Over the past decade, the Indian pharmaceutical industry has undergone a structural transformation, evolving from “pharmacy of the world” to an “innovation powerhouse,” say experts. Once known primarily for its dominance in generics and vaccines, the sector is rapidly emerging as a global innovation engine—powered by large-scale manufacturing, the rise of sophisticated contract research and manufacturing organisations, and multinational pharmaceutical companies establishing global capability centres in India.
Today, India ranks third globally in pharmaceutical volume and 14th in value, with an industry size of US$55 billion, including a US$26 billion domestic market. Pharma exports have risen from US$15.07 billion in 2013–14 to US$27.85 billion in FY24, clocking a CAGR of 7%. Exports are expected to cross US$30 billion this year. Between 2025 and 2047, the sector is projected to surge to US$450 billion, according to a recent report by the Organisation of Pharmaceutical Producers of India (OPPI) and EY-Parthenon.
India today supplies 20% of global generic drugs, 40% of the U.S. generic medicines, 60% of global vaccine demand and 70% of the WHO’s essential vaccines.
With industry giants like the Serum Institute of India, Bharat Biotech and Biological E, the country has built an end-to-end ecosystem spanning research, development, high-throughput manufacturing and global distribution.
India hosts 2,050 WHO-GMP-certified facilities, including 752 US FDA-approved sites—the largest number outside the United States. Another 286 plants hold EDQM approval. Indian companies supply 60,000 generic brands across 60+ therapeutic categories to over 200 global markets.
The market continues to expand steadily. The moving annual turnover (MAT) between Aug 2024 and Jul 2025 grew 7.4%, exceeding US$26 billion, with strong performance in cardiac, gastrointestinal, anti-infective and diabetes segments.