Archive · 22 Dec 2025
India's Pharma Sector Aims for Innovation
India's medicine-making industry is planning big changes for the next five years.
They want to become a leader in making new and better medicines by 2047, aiming to be worth USD 500 billion.
Right now, they make USD 60 billion worth of medicines.
The industry is focusing on making high-quality medicines and new types of drugs.
They also want to take advantage of medicines that will soon stop being exclusive to other companies.
Some challenges include changes in taxes and global trade rules.
But the industry is confident that with the right policies and actions, they can overcome these challenges and grow sustainably.
India's pharmaceutical industry aims to become a USD 500 billion sector by 2047, focusing on innovation and quality.
The industry is shifting towards next-generation drugs and capturing drugs worth over USD 300 billion set to lose exclusivity.
Key challenges include tariff fluctuations and global trade realignments.
Government policies like the PRIP scheme and Research Development Incentive Scheme are supporting innovation.
Industry bodies IPA and OPPI emphasize the importance of building resilient manufacturing ecosystems and strengthening IP protection.
- Who
- Indian Pharmaceutical Alliance (IPA) and Organisation of Pharmaceutical Producers of India (OPPI)
- What
- India's pharmaceutical industry is focusing on innovation and quality to become a USD 500 billion sector by 2047
- When
- Starting 2026, marking the beginning of a critical five-year period
- Where
- India
- Why
- To establish itself as an innovation hub and capture drugs losing exclusivity
Innovation and Quality Focus
Challenges and Strategic Importance
Innovation Agenda
Innovation and Quality Focus
Indian pharma is shifting towards innovation in next-generation drugs and capturing drugs losing exclusivity.
Challenges and Strategic Importance
External headwinds like tariff fluctuations and global trade realignments present near-term challenges.
Manufacturing Standards
Innovation and Quality Focus
Government's focus on elevating manufacturing standards and strengthening IP protection is transformational.
Challenges and Strategic Importance
Building resilient, high-quality manufacturing ecosystems is strategically important.
Growth Strategy
Innovation and Quality Focus
Shift from volume-led growth to value-driven differentiation with complex generics and biosimilars.
Challenges and Strategic Importance
Need to navigate current headwinds and unlock new avenues of sustainable growth.
- Sector Goal
- USD 500 billion by 2047
- Current Size
- USD 60 billion
- Key Focus Areas
- Innovation, quality, and access
- Critical Period
- 2026-2031 for execution and policy momentum
- PRIP Scheme
- Promotion of Research and Innovation in Pharma MedTech sector
- Drugs Losing Exclusivity
- Over USD 300 billion in the next seven years
- Industry Bodies
- Indian Pharmaceutical Alliance (IPA) and Organisation of Pharmaceutical Producers of India (OPPI)
- Key Challenges
- Tariff fluctuations and global trade realignments
Sources
Targeted manufacturing strategy needed, PSU stake sales to fund strategic investments: Rajiv Memani, CII
GDP is growing rapidly. Why isn’t private capex?
Eye on USD 500 bn by 2047, pharma sector steps into 2026 with innovation on agenda
CII President calls for targeted manufacturing, trade diversification and disinvestment funding to boost growth
‘US tariffs, demand slowdown pose risks despite strong Q2 growth’ Q&A with MPC member Nagesh Kumar
Retail inflation with new base year from Feb, new IIP series from May
