India’s Pharma Sector Grows 7.8% in April, Backed by Government’s ‘Smart’ Schemes
India’s pharmaceutical industry is showing no signs of slowing down, recording a robust 7.8% year-on-year growth in April 2025, according to data released by India Ratings, a Fitch Group company, and highlighted by the Press Information Bureau (PIB). The surge reflects strong domestic demand, a steady stream of new product launches, and strategic policy support from the government.
- By Newsdesk
- New Delhi
- May 21, 2025
India’s pharmaceutical industry is showing no signs of slowing down, recording a robust 7.8% year-on-year growth in April 2025, according to data released by India Ratings, a Fitch Group company, and highlighted by the Press Information Bureau (PIB). The surge reflects strong domestic demand, a steady stream of new product launches, and strategic policy support from the government.
Now ranked third globally in pharmaceutical production by volume and 14th by value, India continues to solidify its position as a pharmaceutical powerhouse. The country remains the world's leading supplier of generic medicines, accounting for 20% of global demand, and plays a pivotal role in vaccine manufacturing — meeting between 55% and 60% of UNICEF’s vaccine requirements.
In the fiscal year 2023–24, India’s pharmaceutical sector achieved a turnover of ₹4.17 lakh crore, sustaining a double-digit growth trajectory over the past five years. Government officials have attributed this upward trend to a combination of affordability, innovation, and inclusive access — all supported by a suite of flagship initiatives.
Key among these is the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), which operates 15,479 Jan Aushadhi Kendras across the country. These outlets offer high-quality generic medicines at prices up to 80% lower than branded alternatives, improving access to essential drugs, particularly in underserved regions.
Further bolstering the sector is the Production Linked Incentive (PLI) Scheme for Pharmaceuticals, which earmarks ₹15,000 crore to support the manufacture of critical and high-value medicines such as those used in cancer and diabetes treatment. An additional ₹6,940 crore has been allocated to reduce dependence on imports by ramping up local production of key ingredients like Penicillin G.
The government has also dedicated ₹3,420 crore under a separate PLI initiative to boost the domestic manufacture of high-end medical devices, including MRI machines and cardiac implants. Meanwhile, the Promotion of Bulk Drug Parks scheme, with a budget of ₹3,000 crore, is developing pharmaceutical manufacturing hubs in Gujarat, Himachal Pradesh, and Andhra Pradesh — aimed at cutting costs and accelerating production timelines.
Complementing these measures is the Strengthening of Pharmaceuticals Industry (SPI) Scheme, a ₹500 crore effort to enhance research capabilities and upgrade laboratories, enabling Indian pharma companies to better compete on the global stage.
These initiatives are not just fuelling economic growth but are also having a tangible impact on global healthcare. India currently supplies 99% of the World Health Organization’s demand for DPT (Diphtheria, Pertussis, and Tetanus) vaccines, 52% for the BCG vaccine used against tuberculosis, and 45% of the world’s measles vaccines.
The sector's momentum is also attracting international investors. In 2023–24 alone, foreign direct investment (FDI) in Indian pharmaceuticals surged to ₹12,822 crore. With India allowing 100% FDI in both medical devices and greenfield pharmaceutical ventures, the country is fast emerging as a preferred destination for global pharma giants.
With a focus on domestic self-reliance, quality manufacturing, and global outreach, India’s pharmaceutical industry continues to expand its influence — delivering affordable, life-saving medicines to both national and international markets.