The Indian pharmaceutical industry, long hailed as the ‘pharmacy of the world,’ is undergoing a significant transformation. While it continues to be a major contributor to India’s economic growth, the sector is rapidly shifting its focus from generic drugs to more advanced areas such as MedTech and biosimilars.
MedTech focuses on the design and manufacture of a wide range of medical products and devices for diagnosis, prevention, monitoring, treatment, and patient care. Biosimilars, on the other hand, are biological products highly similar to approved reference biologics in terms of quality, safety, and efficacy, with comparable formulation, administration route, dosage, and strength.
The Indian pharmaceutical industry’s global impact is substantial. According to a 2022 U.S. study, 50% of all generic drugs and 40% of all prescription medicines in the United States were sourced from India. This underscores the critical role India plays in the global pharmaceutical supply chain.
The industry’s growth trajectory is impressive, with consistent double-digit year-on-year growth in real terms over the past decade. India boasts the highest number of WHO and U.S. FDA-certified plants globally, further cementing its position as a leader in pharmaceutical manufacturing.
India’s contribution to global health initiatives is also noteworthy. Nearly half of the vaccines supplied by WHO and UNICEF for their global programs originate from India, highlighting the country’s crucial role in worldwide immunization efforts.
As the Indian pharmaceutical industry continues to evolve, its transition from generics to more advanced sectors represents a strategic shift toward higher-value, more complex products. This evolution not only reinforces India’s position as a global pharmaceutical powerhouse but also promises to drive innovation and economic growth in the coming years.
