Indian pharmaceutical industry: Transitioning into a global innovation and manufacturing powerhouse

Over the past decade, the Indian pharmaceutical industry has undergone a structural transformation, evolving from “pharmacy of the world” to an “innovation powerhouse,” say experts. Once known primarily for its dominance in generics and vaccines, the sector is rapidly emerging as a global innovation engine—powered by large-scale manufacturing, the rise of sophisticated contract research and manufacturing organisations, and multinational pharmaceutical companies establishing global capability centres in India.

Today, India ranks third globally in pharmaceutical volume and 14th in value, with an industry size of US$55 billion, including a US$26 billion domestic market. Pharma exports have risen from US$15.07 billion in 2013–14 to US$27.85 billion in FY24, clocking a CAGR of 7%. Exports are expected to cross US$30 billion this year. Between 2025 and 2047, the sector is projected to surge to US$450 billion, according to a recent report by the Organisation of Pharmaceutical Producers of India (OPPI) and EY-Parthenon.

Growth at scale

India today supplies 20% of global generic drugs, 40% of the U.S. generic medicines, 60% of global vaccine demand and 70% of the WHO’s essential vaccines.

With industry giants like the Serum Institute of India, Bharat Biotech and Biological E, the country has built an end-to-end ecosystem spanning research, development, high-throughput manufacturing and global distribution.

India hosts 2,050 WHO-GMP-certified facilities, including 752 US FDA-approved sites—the largest number outside the United States. Another 286 plants hold EDQM approval. Indian companies supply 60,000 generic brands across 60+ therapeutic categories to over 200 global markets.

The market continues to expand steadily. The moving annual turnover (MAT) between Aug 2024 and Jul 2025 grew 7.4%, exceeding US$26 billion, with strong performance in cardiac, gastrointestinal, anti-infective and diabetes segments.

India’s rise as a CRDMO hub

India’s contract research, development and manufacturing (CRDMO/CDMO) sector is rapidly maturing, shifting the nation’s role from low-cost outsourcing to strategic global R&D and manufacturing partnerships.

The Indian CRDMO industry grew 15% between 2019 and 2024—twice the global growth rate. It is projected to grow at a 14% CAGR from 2023 to 2028, doubling from US$7 billion to US$14 billion. Of this, CDMOs alone are expected to represent US$11 billion.

Driven by investments in advanced manufacturing, AI-powered platforms, biologics, analytics, and complex chemistry capabilities, Indian CRDMOs are increasingly participating in early-stage discovery and high-value development programmes.

“Indian pharma’s scale and scientific depth are now being matched by value-led innovation, while the CRDMO sector is emerging as a key partner for global R&D and manufacturing,” says Bhushan Akshikar, President, OPPI, and Vice President & Managing Director, GlaxoSmithKline Pharmaceuticals.

A major shift is underway—from traditional API/intermediate manufacturing to advanced platforms, including antibody–drug conjugates (ADCs), Bioconjugates, Peptides, mAbs, and biologics manufacturing, as well as GLP-1 fill–finish and Cell/gene-adjacent discovery services.

Several contracts now take the form of long-term strategic partnerships with shared capacity creation, reflecting a move from transactional supply to capability-driven, trust-based collaborations. “Strong public–private alliances, purposeful digital integration and ecosystem-wide investment in R&D are essential to building a future-ready healthcare sector that serves India and the world,” says Anil Matai, Director General, OPPI.