Advantage India
Cost
Efficiency
* India has emerged as the medial tourism hub of the world providing cost-effective treatments with the latest technology enabled by several pathbreaking reforms and provisions in healthcare sector.
* Access to affordable HIV treatment from India is one of the greatest success stories in medicine. India is one of the biggest suppliers of low-cost vaccines in the world, thereby rightly making it the ‘Pharmacy of the World’.
Economic
Drivers
*According to Bain & Co, the Indian Pharmaceutical market stood at Rs. 4,71,295 crore (US$ 55 billion) in 2025 and is expected to grow to Rs. 10,28,280-11,13,970 crore (US$ 120-130 billion) by 2030.
*In FY24 domestic consumption was valued at Rs. 2,01,372 crore (US$ 23.5 billion).
*The pharmaceutical industry’s total turnover stood at Rs. 2,25,000 crore (US$ 26.26 billion) in FY25 lead by cardiac, gastrointestinal and anti-diabetic segments.
*India has the largest number of USFDA-compliant plants outside the US and over 2,000 WHO-GMP approved facilities, exporting to 150+ countries.
*CRDMO industry expected to double to Rs. 1,21,282 crore (US$ 14 billion) by 2028, reinforcing India’s role in global supply chains.
Policy
Support
*PLI scheme: Rs. 15,000 crore (US$ 2.04 billion) outlay (2020-21 to 2028-29) to boost manufacturing, investment, and product diversification.
*Strengthening of Pharmaceutical Industry (SPI): Rs. 500 crore (US$ 60.6 million) to support pharma clusters and MSMEs in productivity, quality, and sustainability.
*Under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana, 16,912 Jan Aushadhi Kendras are operational as of June 30, 2025, with a target of 25,000 by March 2027, offering 2,110 medicines and 315 devices/consumables to promote affordable quality generic healthcare.
*Government disbursed Rs. 604 crore (US$ 69.76 million) under the PLI scheme in H1 FY25.
Increasing
Investment
*FDI policy: Up to 100% FDI allowed via automatic route for Greenfield pharma projects; up to 74% for Brownfield via automatic, beyond that with government approval.
*The Drugs & Pharmaceuticals sector received FDI inflow of Rs. 2,10,940 crore (US$ 24.62 billion) from April 2000-June 2025.
*Union Budget 2025-26: Allocation of Rs. 5,268 crore (US$ 602 million) for the Department of Pharmaceuticals, up 28.8% over previous budget estimates.
Sun Pharmaceuticals
Sun Pharmaceuticals is the largest pharmaceutical company from India and the fifth largest specialty generic company in the world. It has capabilities across dosage forms like injectables, sprays, ointments, creams, liquids, tablets, and capsules. Its businesses include producing generics, branded generics, speciality, over the counter (OTC) products, anti-retrovirals (ARVs), active pharmaceutical ingredients (APIs) and intermediates in the full range of dosage forms. It also produces specialty APIs. In FY 2021-22, India branded generics contributed the most to company’s sales with 33% share, followed by US business at 30% share.
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Cipla
Cipla is a leading pharmaceutical from India with presence across the world. It was established in 1935 as Chemical Industrial & Pharmaceutical Laboratories Ltd and changed to its current name in 1984. The company has a vast portfolio with more than 1,500 products in the market. The company’s business is divided into three strategic units - APIs, respiratory and Cipla Global Access. Its largest market is India, followed by Africa and North America. The company’s total revenue reached Rs. 25,455 crore (US$ 3.06 billion) in FY24.
Read MoreLupin Pharmaceuticals
Lupin Ltd. is a leading pharmaceutical company from India and is amongst the top 10 generic companies in the world. It started its business in 1968 and over the years has become one of the largest pharmaceutical companies in India and the world. Its businesses include formulations, Active Pharmaceutical Ingredients (API), drug delivery systems and biotechnology. Lupin’s total revenue stood at Rs. 196,563 million (US$ 2.36 billion) in FY24. Lupin’s total revenue stood at Rs. 57,677.1 million (US$ 660 million) in Q3 FY25.
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