Volume to value - How India can become a quiet superpower
- IBEF
- January 8, 2026
The Indian pharmaceutical industry is already recognized as the third-largest producer of medicines in the world and supplier of nearly 60% of global vaccines, but it is poised for a transformation in the Union Budget 2026-27, wherein policymakers might look to reorient the sector from high-volume, low-margin exports to high-value innovation and advanced product segments. India has achieved global scale on the back of generics and bulk manufacturing, traditionally its strong suits, but its heft is not matched by value-driven biopharmaceuticals, new drug discovery, and cutting-edge medical technologies-those commanding higher margins and greater leverage in global markets. From volume to value, this pivot may enhance the competitiveness of the pharmaceutical ecosystem, connect research and development more directly with industrial strategy, and position India as a significant contributor in emerging global healthcare value chains rather than only a low-cost provider. This discussion brings out the urgency of building innovation ecosystems that attract investment in biologics, biosimilars, precision therapies, and link domestic capacity with global demand drivers.
However, this requires structural reforms to overcome regulatory barriers, improve intellectual property regimes, and create incentives for R&D driven growth that encourages firms to climb up the value chain and establish internationally acclaimed brands. Emphasis on quality standards, export diversification, and collaboration between industry and academia, as well as government research institutions, can spur India’s transition from generic dominance to innovation leadership. The Budget can align policy, funding, and strategic incentives to unlock newer opportunities for the sector to make much greater contributions towards India’s economic growth and export revenues, as also its influence in world health, and thus become a ‘quiet superpower’ in pharmaceuticals over the decade ahead.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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