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India’s Pharma Industry Poised for Next Leap as Global Generics Leader Calls for Stronger AI Adoption and Innovation

• By Newsdesk
• New Delhi
• Dec 05, 2025

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India’s pharmaceutical industry has undergone a remarkable transformation over the past five decades, evolving from a significant importer of medicines into a dominant global supplier of generic drugs. According to the India Future Readiness Indicator (IFRI) 2025 published by IMD in collaboration with the Confederation of Indian Industry (CII), the country now produces more than 60,000 generic medicines across over 60 therapeutic categories and exports them to more than 200 countries. The sector contributes about 1.7% to India’s GDP and makes up nearly 6% of its merchandise exports, with a domestic market valued at approximately USD 55 billion.

Despite this scale and global reach, the report highlights that India’s pharma sector is at a pivotal juncture. Shifting global supply chains, rising sustainability expectations, and the growing demand for advanced biological treatments are reshaping the industry landscape. While India continues to shine in generics, its investment in research and innovation remains relatively limited. Most Indian companies allocate between 5–8% of their revenue to R&D, a figure that falls short of global pharmaceutical leaders investing heavily in next-generation therapies such as GLP-1 drugs, antibody–drug conjugates, and cell and gene therapies. The IFRI report notes that India must elevate its R&D efforts, particularly in biologics and AI-assisted drug discovery to keep pace with global advancements.

The report also underscores the need for the sector to meaningfully adopt digital technologies. Although artificial intelligence is increasingly being used by multinational pharma companies across drug development, manufacturing, quality control, and supply-chain optimization, Indian companies are still largely in the early stages of digital integration. Many currently rely on AI only for specific tasks like formulation or quality analytics. To maintain competitiveness, the report recommends expanding AI usage across the entire value chain, from manufacturing and logistics to post-market patient support.

A major shift identified in the report is the global move from selling standalone drugs to delivering integrated care solutions. This includes pairing medicines with diagnostics, digital tools, monitoring devices, and data-driven health services—such as digital inhalers, continuous glucose-monitoring systems, and coaching apps—to improve adherence and health outcomes. With its strong manufacturing base and international footprint, India is well-positioned to participate in this evolution. However, doing so will require a transition from a purely product-focused model to building collaborative ecosystems with medtech companies and digital-health innovators.

The trajectory of India’s pharma sector reflects impressive progress, but generics alone will not define its future. The IFRI 2025 makes it clear that the next phase of growth depends on greater innovation, deeper digital adoption, and a shift toward value-based, connected healthcare solutions. Strengthening R&D investments, scaling AI across operations, and forging partnerships in digital health will be critical for Indian companies aiming to lead in the next generation of global pharmaceuticals not just as suppliers, but as innovators shaping the future of medicine.

(Source: ANI)