India Pharmaceuticals Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Growth Factors of India pharmaceuticals Market

The India pharmaceuticals market was valued at USD 66.02 billion in 2024, is projected to grow to USD 72.24 billion in 2025, and is expected to reach USD 145.09 billion by 2032, exhibiting a robust CAGR of 10.48% during the forecast period (2025-2032).

India remains one of the most dynamic and rapidly evolving pharmaceutical markets globally, widely recognized as the "pharmacy of the world" for its massive generic drug production capabilities. The country's pharmaceutical sector is supported by a strong manufacturing base, increasing prevalence of chronic diseases, and rising public healthcare spending. With government initiatives promoting innovation, R&D expansion, and international collaboration, India is poised to solidify its position as a global leader in affordable medicine production.

In July 2025, India and Uzbekistan initiated talks to enhance bilateral cooperation in the pharma sector, focusing on investments to improve healthcare infrastructure and drug accessibility, further strengthening India's export footprint and global partnerships.

Market Trends

Biosimilars at the Forefront of Innovation and Affordability

A defining trend in India's pharmaceutical landscape is the accelerated development and commercialization of biosimilars, which are cost-effective alternatives to biologic drugs. Owing to their therapeutic equivalence and affordability, biosimilars are transforming access to advanced treatments in areas such as oncology, immunology, and chronic inflammatory diseases.

In August 2024, Biocon Biologics collaborated with Janssen Biotech Inc. to launch Bmab 1200, a biosimilar to Stelara, approved for multiple autoimmune conditions including psoriasis, ulcerative colitis, and Crohn's disease. Such partnerships emphasize India's growing expertise in biosimilar development, supporting domestic accessibility while boosting export potential.

Growth Factors

1. High Production Volumes of Generic Drugs and Biosimilars

India is one of the world's leading suppliers of generic pharmaceuticals, accounting for nearly 20% of global exports by volume. The country's extensive network of USFDA-approved manufacturing facilities and a competitive cost structure make it a preferred source for high-quality, affordable medications.

According to the Pharmaceuticals Export Promotion Council of India, the country's pharmaceutical exports reached USD 30.47 billion during FY25 (Apr-Mar), marking a 9.4% year-on-year increase. Key export destinations include the U.S., Europe, and Africa, reflecting India's global pharmaceutical dominance.

2. Expanding Biopharmaceutical and Vaccine Manufacturing

India has also become a global hub for vaccine production, contributing to public health worldwide. Collaborations between Indian companies and global organizations are driving innovation and expanding vaccine accessibility in developing regions.

For example, in June 2025, Bharat Biotech partnered with GSK for the licensing of altSonflex1-2-3, a Shigella vaccine designed for low- and middle-income countries. Such partnerships reinforce India's leadership in preventive healthcare and biologics.

Market Restraints

Geopolitical Risks and Regulatory Challenges

Despite its growth potential, India's pharmaceutical industry faces challenges such as tariff disputes, intellectual property issues, and regulatory changes. In July 2025, the U.S. government initiated a review of Indian pharmaceutical imports citing IP and pricing concerns, raising the possibility of increased export tariffs. These disruptions can affect margins and global competitiveness.

Segmentation Insights

By Type

The drugs segment accounted for nearly 97% of the total market in 2024, while vaccines continue to gain traction due to India's leadership in vaccine production.

By Disease Indication

Oncology is projected to grow at a CAGR of 14.6% during the forecast period, driven by an increasing cancer burden and rapid approval of new targeted therapies. In June 2025, Glenmark launched Brukinsa (Zanubrutinib), India's first BTK inhibitor approved for five types of B-cell malignancies.

Diabetes remains a dominant therapeutic area due to its rising prevalence. In March 2025, Morepen Laboratories launched Empamore for the treatment of type 2 diabetes, heart failure, and chronic kidney disease, showcasing the ongoing innovation in metabolic therapies.

By Drug Type

Biologics and biosimilars accounted for 22% of market share in 2024, led by antibody-based and vaccine products. India continues to expand its biosimilar pipeline, with launches such as Enzene Biosciences' Ranibizumab (2023) for age-related macular degeneration, signaling the sector's upward trajectory.

By Route of Administration

The oral drug delivery segment, valued at USD 38.36 billion in 2024, dominates due to its convenience, low cost, and ease of manufacturing. Launches such as Sun Pharma's Brillo (Bempedoic Acid) further expand India's oral therapy portfolio.

By Age Group

The adult population segment is projected to grow at a CAGR of 10.5%, driven by increasing lifestyle-related diseases. The pediatric segment also remains vital due to ongoing vaccination programs; for instance, Indian Immunologicals Limited's Mabella vaccine (2023) targets measles and rubella in children.

By Distribution Channel

Retail pharmacies dominate the market due to their vast presence across urban and rural India. Major retail expansions - such as Medlife's network of 750 pharmacies, later integrated under PharmEasy - demonstrate the industry's focus on accessibility and distribution efficiency.

Competitive Landscape

The Indian pharmaceutical market features a mix of multinational corporations and strong domestic players. Leading participants include:

• Novartis AG
• Sanofi (France)
• AstraZeneca (U.K.)
• Pfizer Inc. (U.S.)
• Merck & Co., Inc. (U.S.)
• Johnson & Johnson (U.S.)
• F. Hoffmann-La Roche Ltd. (Switzerland)
• Novo Nordisk A/S (Denmark)
• GSK plc (U.K.)
• Amgen Inc. (U.S.)

Recent Developments:

• August 2025: Intas Pharmaceuticals launched Hetronifly (Serplulimab) for small cell lung cancer, in collaboration with Shanghai Henlius Biotech.
• June 2025: Servier India launched Ivosidenib (Tibsovo), an oral targeted therapy for acute myeloid leukemia (AML) and cholangiocarcinoma, after CDSCO approval.

Conclusion

The India pharmaceuticals market is on a transformative growth path, fueled by strong generic exports, biosimilar development, and expanding vaccine production. Government support, international collaborations, and robust R&D investment will continue to drive innovation and global competitiveness. Despite challenges such as tariff risks and regulatory complexities, India's position as a key pharmaceutical manufacturing hub remains unshakable.

Market Size Overview:

• 2024: USD 66.02 Billion
• 2025: USD 72.24 Billion
• 2032: USD 145.09 Billion
• CAGR (2025-2032): 10.48%

Segmentation By Type

• Drugs
  • Prescription
  • OTC
• Vaccines
  • Bacterial
  • Viral

By Disease Indication

• Oncology
• Diabetes
• Infectious
• Cardiovascular
• Neurology & Psychiatry
• Respiratory
• Renal
• Obesity
• Autoimmune, Ophthalmic
• Gastrointestinal
• Dermatology
• Hematology/Blood
• Liver/Hepatology
• Genetic
• Hormonal/Endocrine
• Women's Health, Reproductive
• Allergies
• Others

By Drug Type

• Biologics & Biosimilars
  • Antibodies
    • Monoclonal Antibodies (mAbs),
    • Bispecific Antibodies
    • Antibody-Drug Conjugates (ADCs)
    • Others
  • Vaccines
  • Peptides/Peptide-Drug Conjugates (PDCs)
  • Others
  • Small Molecules/Conventional Drugs

By Route of Administration

• Oral
• Parenteral
• Topical
• Inhalation
• Others

By Age Group

• Pediatric
• Adults

By Distribution Channel

• Hospitals Pharmacies
• Drug Stores & Retail Pharmacies
• Online Pharmacies