
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 66.66 Billion |
Market Size (2030) | USD 88.86 Billion |
CAGR (2025 - 2030) | 5.92 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Indian Pharmaceutical Market Analysis
The India Pharmaceutical Market size is estimated at USD 66.66 billion in 2025, and is expected to reach USD 88.86 billion by 2030, at a CAGR of 5.92% during the forecast period (2025-2030).
India has established itself as a global pharmaceutical powerhouse, demonstrated by its extensive infrastructure and regulatory compliance capabilities. The country maintains the highest number of US FDA-approved manufacturing units outside the United States, with 741 approved facilities as of recent data. This robust pharmaceutical manufacturing foundation is complemented by a comprehensive network of research facilities, quality control laboratories, and specialized pharmaceutical production zones. The nation's pharmaceutical sector has evolved from being primarily focused on domestic supply to becoming an integral part of the global pharmaceutical supply chain, particularly in generic medicines and active pharmaceutical ingredients.
The country's export capabilities have shown remarkable strength, with pharmaceutical exports reaching USD 24.6 billion in 2021-22, highlighting India's growing importance in global pharmaceutical trade. India has positioned itself as a crucial supplier in the global pharmaceutical landscape, providing over 50% of worldwide vaccine demand and 40% of generic medicines requirements in the United States. This achievement is supported by the country's sophisticated drug manufacturing capabilities and its ability to maintain high quality standards while keeping production costs competitive. The nation's pharmaceutical infrastructure encompasses over 3,000 drug companies and approximately 10,500 manufacturing units, creating a robust and diverse manufacturing ecosystem.
The Indian pharmaceutical sector has demonstrated significant advancement in technological capabilities and innovation, particularly in the development and manufacturing of complex generics and biosimilars. The country has established itself as a major hub for active pharmaceutical ingredients manufacturing, producing over 500 different types of APIs and contributing 57% of APIs to the WHO's prequalified list. This technological prowess is further enhanced by continuous investments in research and development facilities, automation of manufacturing processes, and the adoption of advanced quality control systems, positioning India as a key player in pharmaceutical innovation and development.
The regulatory landscape has evolved to support the industry's growth while maintaining quality standards. Recent government initiatives have focused on streamlining approval processes for new facilities and encouraging domestic pharmaceutical manufacturing capabilities. The emphasis has shifted towards creating a more conducive environment for pharmaceutical manufacturing, with particular attention to quality control and international compliance standards. The government's proactive approach in developing pharmaceutical clusters and supporting infrastructure development has strengthened India's position as a reliable global pharmaceutical supplier, while also ensuring the industry's sustainable growth and competitiveness in the international market.
Indian Pharmaceutical Market Trends
Low Cost of Production and Increased R&D Activities
India has established itself as a global pharmaceutical manufacturing hub due to its significant cost advantages and robust research capabilities. The cost of manufacturing and production of drugs in India is approximately 33% lower compared to Western markets, driven by factors including cheaper labor costs, lower resource expenses for utilities like water and electricity, and well-developed infrastructure. This cost efficiency is supported by India's extensive network of manufacturing facilities, including over 1,400 WHO-GMP approved pharmaceutical plants and 253 European Directorate of Quality Medicines (EDQM) approved facilities, enabling high-quality production at competitive prices.
The country's pharmaceutical sector has demonstrated a strong commitment to research and development, with leading Indian pharmaceutical companies investing approximately USD 916 million in pharmaceutical research activities. This investment is strengthened by India's robust technological infrastructure and state-of-the-art research facilities. The presence of well-established companies actively contributing to drug development has led to the creation of novel products across various therapeutic categories. India currently offers over 60,000 generic products across 60 therapeutic categories in the global pharmaceutical market, showcasing its capabilities in both manufacturing efficiency and innovation.
Increased Expenditure on Healthcare and Medicine
The Indian healthcare sector has witnessed substantial growth in investment and expenditure, becoming one of the country's largest sectors in terms of both revenue and employment. The government has demonstrated a strong commitment through increased healthcare spending, with the Ministry of Health and Family Welfare receiving an allocation of USD 10.35 billion, while the Department of Health Research has been allocated USD 365.68 million. These investments have been further supported by initiatives like the Production Linked Incentive (PLI) scheme, which includes investment incentives of up to INR 6,940 crores to promote domestic pharmaceutical manufacturing of pharmaceuticals.
The sector's growth is also driven by the government's focus on strengthening the healthcare infrastructure through various policy initiatives and reforms. The implementation of programs like the National Institutes of Pharmaceutical Education & Research (NIPERS) has helped build a skilled talent pool, with India producing over 246,000 pharmacy graduates and 8.8 million graduates in science, technology, and engineering. This combination of increased healthcare expenditure and development of human resources has created a robust ecosystem for drug discovery and innovation, positioning India as a key player in the global pharmaceutical supply chain.
Segment Analysis: By Therapeutic Category
Respiratory Segment in Indian Pharmaceutical Market
The respiratory segment continues to dominate the Indian pharmaceutical market, holding approximately 36% of the total market share in 2024. This significant market position is driven by the increasing prevalence of respiratory diseases, growing air pollution concerns, and the expanding portfolio of therapeutic drugs. The segment encompasses a wide range of medicinal drugs, including bronchodilators, corticosteroids, mast cell stabilizers, anti-IgE antibodies, and leukotriene receptor antagonists. Major pharmaceutical companies like AstraZeneca, Roche, Johnson & Johnson, Glenmark Pharmaceuticals, Cipla, and Pfizer have established a strong presence in this segment, continuously introducing innovative respiratory medications and treatments to address the growing healthcare needs of the Indian population.

Anti-Infectives Segment in Indian Pharmaceutical Market
The anti-infectives segment is emerging as the fastest-growing category in the Indian pharmaceutical market, with a projected growth rate of approximately 12% during 2024-2029. This robust growth is primarily attributed to the increasing burden of infectious diseases, technological advancements in drug development, and enhanced research and development activities supported by government initiatives. The segment has witnessed significant developments in antifungals, anthelmintics, antimalarials, antiprotozoals, antituberculosis agents, and antivirals. Key market players, including Novartis AG, Cipla, Merck & Co. Inc., Gilead Sciences, and GlaxoSmithKline Inc., are actively investing in research and development to introduce innovative anti-infective therapeutic drugs, further driving the segment's growth trajectory.
Remaining Segments in Therapeutic Category
The other therapeutic segments, including cardiovascular, gastrointestinal, anti-diabetic, and various other categories, collectively play a crucial role in shaping the Indian pharmaceutical market landscape. The cardiovascular segment maintains its significance due to the rising prevalence of heart diseases and lifestyle-related conditions. The gastrointestinal segment addresses a wide range of digestive health issues, while the anti-diabetic segment continues to expand due to India's growing diabetic population. These segments are characterized by continuous product innovations, strategic collaborations among pharmaceutical companies, and increasing focus on affordable healthcare solutions. The diverse therapeutic categories demonstrate the market's ability to address various healthcare needs while maintaining competitive dynamics and innovation potential.
Segment Analysis: By Drug Type
Prescription Drugs Segment in Indian Pharmaceutical Market
The prescription drugs segment continues to dominate the Indian pharmaceutical market, accounting for approximately 84% of the total market share in 2024. This segment encompasses both branded drugs and generic drugs that can only be obtained through valid prescriptions from licensed healthcare providers. The segment's commanding position is attributed to India's role as the largest provider of generic drugs globally, supplying over 50% of global vaccine demand and 40% of generic demand in the United States. The robust growth in this segment is driven by several factors, including the increasing burden of chronic diseases, expanding healthcare infrastructure, and rising healthcare expenditure in India. The government's supportive policies, including the Production Linked Incentive (PLI) scheme and initiatives to promote domestic manufacturing, have further strengthened this segment's position. Additionally, the presence of numerous FDA-approved manufacturing plants and WHO-GMP approved facilities has established India as a trusted source for prescription drugs globally.
OTC Drugs Segment in Indian Pharmaceutical Market
The over-the-counter (OTC drugs) segment represents a growing opportunity in the Indian pharmaceutical market, driven by increasing health awareness and self-medication trends among consumers. This segment has witnessed significant developments with the introduction of new products across various categories, including vitamins, minerals, nutritional supplements, cough and cold remedies, and pain relief products. The segment's growth is supported by the increasing accessibility of these medications through both traditional retail channels and emerging e-pharmacy platforms. The regulatory environment has also evolved to support the OTC drugs segment, with the government working on establishing clear guidelines for OTC drugs classification and marketing. The segment has particularly benefited from the rising consumer preference for preventive healthcare and wellness products, coupled with the convenience of direct purchase without prescription requirements. Market players are actively expanding their OTC drugs portfolios through new product launches and strategic marketing initiatives to capture the growing consumer demand.
Indian Pharmaceutical Industry Overview
Top Companies in Indian Pharmaceutical Market
The Indian pharmaceutical market is led by prominent players, including Sun Pharmaceutical Industries, Dr. Reddy's Laboratories, Cipla, Lupin, Cadila Healthcare, and multinational corporations like GlaxoSmithKline, Pfizer, and Novartis. These companies demonstrate strong product innovation capabilities through continuous research and development investments, particularly in areas like biopharmaceuticals, biosimilars, complex generics, and specialty medicines. Their operational agility is evident in their robust manufacturing infrastructure, with many maintaining FDA-approved facilities and WHO-GMP compliant plants across India. Strategic moves include increasing focus on emerging therapeutic areas like oncology, diabetes, and respiratory diseases, while expanding digital healthcare capabilities and direct-to-consumer channels. Companies are actively pursuing geographical expansion through strategic partnerships, licensing agreements, and market-specific product launches, particularly in high-growth regions across Asia, Africa, and Latin America.
Dynamic Market Structure Drives Industry Evolution
The Indian pharmaceutical market exhibits a unique blend of domestic champions and global pharmaceutical giants, with local players demonstrating strong manufacturing capabilities and cost advantages, while multinationals bring advanced research capabilities and global market access. The market structure is characterized by a mix of large integrated pharmaceutical companies and specialized players focusing on specific therapeutic segments or technologies. The industry has witnessed significant consolidation through mergers and acquisitions, with companies seeking to expand their product portfolios, enhance manufacturing capabilities, and strengthen their presence in key therapeutic areas.
The competitive landscape is further shaped by the increasing focus on value-added formulations and specialty pharmaceuticals, moving beyond traditional generic manufacturing. Companies are actively pursuing strategic alliances and partnerships to access new technologies, expand their geographic reach, and enhance their research and development capabilities. The market has seen a notable trend of domestic companies acquiring international assets to expand their global footprint, while multinational corporations are strengthening their presence in India through local manufacturing and research facilities.
Innovation and Adaptability Drive Future Success
Success in the Indian pharmaceutical market increasingly depends on companies' ability to balance innovation with cost efficiency while maintaining regulatory compliance. Market leaders are investing heavily in research and development to develop complex generics and innovative formulations, while also focusing on operational excellence through digital transformation and automation. Companies are strengthening their position by developing specialized capabilities in emerging therapeutic areas, expanding their manufacturing infrastructure, and building strong distribution networks across both urban and rural markets.
Future competitiveness will be determined by companies' ability to navigate regulatory requirements while maintaining quality standards and cost-effectiveness. Players are focusing on building robust quality management systems, strengthening their supply chain resilience, and developing strategic partnerships across the value chain. The increasing focus on patient-centric healthcare solutions and the growing importance of digital technologies are driving companies to invest in innovative delivery models and patient engagement platforms. Success will also depend on companies' ability to adapt to changing market dynamics, including evolving healthcare policies, pricing regulations, and increasing competition from both domestic and international players. The role of pharmaceutical biotechnology is becoming increasingly significant as companies explore new avenues for growth.
Indian Pharmaceutical Market Leaders
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Sun Pharmaceutical Industries Limited
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Cipla Pharmaceuticals
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Pfizer
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Lupin
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Dr. Reddy’s laboratories
- *Disclaimer: Major Players sorted in no particular order

Indian Pharmaceutical Market News
- In February 2022, Dr. Reddy's Laboratories Ltd. announced that the Drugs Controller General of India (DCGI) had approved the single-shot Sputnik Light vaccine for restricted use in an emergency in India.
- In November 2021, Cipla Limited was granted EUA permission by the DCGI for the launch of Molnupiravir in India, the first oral antiviral approved by the United Kingdom Medicines and Healthcare Products Regulatory Agency (MHRA) for the treatment of mild-to-moderate COVID-19 at high risk of developing severe disease.
Indian Pharmaceutical Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Overview
- 4.1.1 Healthcare Expenditure (Govt. Vs Private)
- 4.1.1.1 Pharmaceutical Imports and Exports
- 4.1.1.2 Epidemiology Data For key Diseases
- 4.1.1.3 Regulatory Landscape/Regulatory Bodies
- 4.1.1.4 Licensing and Market Authorization (For both Local Production and Imported Goods)
- 4.1.2 Pipeline Analysis
- 4.1.2.1 By Phase
- 4.1.2.2 By Sponsor
- 4.1.2.3 By Disease
- 4.1.3 Statistical Overview
- 4.1.3.1 Number of Hospitals
- 4.1.3.2 Employment in the Pharmaceutical Sector
- 4.1.3.3 R&D Expenditure
- 4.1.4 Ease of Doing Business
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4.2 Market Drivers
- 4.2.1 Low Cost of Production and Increased R&D Activities
- 4.2.2 Increased Expenditure on Healthcare and Medicine
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4.3 Market Restraints
- 4.3.1 Lack of a Stable Pricing and Policy Environment
- 4.3.2 Lack in Development of Innovative Drugs
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4.4 Porter's Five Force Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD million)
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5.1 By Therapeutic Category
- 5.1.1 Anti-Infectives
- 5.1.2 Cardiovascular
- 5.1.3 Gastrointestinal
- 5.1.4 Anti Diabetic
- 5.1.5 Respiratory
- 5.1.6 Dermatologicals
- 5.1.7 Musculo-Skeletal System
- 5.1.8 Nervous System
- 5.1.9 Others
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5.2 By Drug Type
- 5.2.1 Prescription Drug
- 5.2.1.1 Branded Drugs
- 5.2.1.2 Generic Drugs
- 5.2.2 OTC Drugs
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 Cipla Inc.
- 6.1.2 Dr. Reddy's Laboratories Ltd.
- 6.1.3 Lupin Limited
- 6.1.4 Sun Pharmaceutical Industries Ltd.
- 6.1.5 Cadila Pharmaceuticals
- 6.1.6 GlaxoSmithKline plc
- 6.1.7 Biocon Limited
- 6.1.8 Pfizer Inc
- 6.1.9 Novartis AG
- 6.1.10 Merck & Co., Inc.
- 6.1.11 Torrent Pharma.
- 6.1.12 Divi's Laboratories.
- 6.1.13 Aurobindo Pharma Limited
- 6.1.14 Mankind Pharma
- 6.1.15 Abbott
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Indian Pharmaceutical Industry Segmentation
As per the scope of this report, pharmaceuticals are referred to as prescribed and non-prescribed drugs used for medical purposes to cure, prevent, or control any therapeutic condition. The India Pharmaceutical Market is segmented by Therapeutic Category (Anti-Infectives, Cardiovascular, Gastrointestinal, Anti Diabetic, Respiratory, Dermatologicals, Musculo-Skeletal System, Nervous System, and Others) and Drug Type (Prescription Drugs (Branded Drugs and Generic Drugs), and Over Counter Drugs). The report offers the value (in USD million) for the above segments.
By Therapeutic Category | Anti-Infectives | ||
Cardiovascular | |||
Gastrointestinal | |||
Anti Diabetic | |||
Respiratory | |||
Dermatologicals | |||
Musculo-Skeletal System | |||
Nervous System | |||
Others | |||
By Drug Type | Prescription Drug | Branded Drugs | |
Generic Drugs | |||
OTC Drugs |
Indian Pharmaceutical Market Research FAQs
How big is the India Pharmaceutical Market?
The India Pharmaceutical Market size is expected to reach USD 66.66 billion in 2025 and grow at a CAGR of 5.92% to reach USD 88.86 billion by 2030.
What is the current India Pharmaceutical Market size?
In 2025, the India Pharmaceutical Market size is expected to reach USD 66.66 billion.
Who are the key players in India Pharmaceutical Market?
Sun Pharmaceutical Industries Limited, Cipla Pharmaceuticals, Pfizer, Lupin and Dr. Reddy’s laboratories are the major companies operating in the India Pharmaceutical Market.
What years does this India Pharmaceutical Market cover, and what was the market size in 2024?
In 2024, the India Pharmaceutical Market size was estimated at USD 62.71 billion. The report covers the India Pharmaceutical Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the India Pharmaceutical Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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India Pharmaceutical Market Research
Mordor Intelligence offers a comprehensive analysis of the pharmaceuticals industry. We leverage deep expertise in the medicines and pharma sector. Our extensive report covers everything from drug discovery to drug manufacturing. It includes detailed analysis of generic drugs, OTC drugs, and prescription drugs. The research also delves into pharmaceutical chemicals, active pharmaceutical ingredients, and biopharmaceuticals. We examine crucial aspects of pharmaceutical packaging and pharmaceutical formulation. Our report PDF, available for download, provides in-depth insights into drug development processes, pharmaceutical biotechnology, and the evolution of both small molecule drugs and large molecule drugs.
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