India Pharmaceutical Market Research Report: Forecast (2025-2030)

Market Definition

Pharmaceutical is an industry related to the innovation, discovery, manufacturing, development, and marketing of medications and drugs, which are used to treat and cure diseases.

Market Insights & Analysis: India Pharmaceuticals Market (2025-30):

The India Pharmaceutical Market size was valued at around USD 53.29 billion in 2025 and is projected to reach USD 92.32 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 11.62% during the forecast period, i.e., 2025-30. The India Pharmaceutical Market is significantly growing due to several growth factors, including the growing burden of chronic diseases such as diabetes, cardiovascular diseases, & respiratory diseases, the rising healthcare requirements, the active government support, the rapid adoption of green and sustainable manufacturing of pharmaceutical products, etc. One of the most prominent growth factors is the rising global demand for Indian pharmaceuticals due to their affordable costs, approval by global regulators like the WHO and the USFDA. India has started to export pharmaceutical products such as drugs and vaccines to more than 200 countries, including the United States, Europe, and African countries.

Additionally, the Indian government is also encouraging the pharmaceutical industry to substantially grow in the country by allocating heavy funds under various policies such as the Production Linked Incentive Scheme and the Pharma Vision 2020. Also, the improved trade relations between India and other countries are increasing the market potential, as these relations allow the Indian Pharmaceutical Markets to enter with zero percent tariffs in foreign markets.

Moreover, the adoption of sustainable practices in the synthesis of various drugs and the active ingredients to reduce pollution and to safeguard the environmental & public health due to rising environmental concerns is positively transforming this market. However, intense competition from the companies producing generic drugs and the regulatory hurdles are restraining the market growth & expansion.

India Pharmaceuticals Market Scope:

India Pharmaceuticals Market Driver:

Rising Chronic Diseases – The pharmaceutical demand is rapidly growing due to the high severity of chronic diseases in the country, such as diabetes, cardiovascular diseases, tuberculosis, respiratory diseases, and many more. For instance, India has over 100 million individuals suffering from diabetes, while above 25% of the annual deaths in India are due to the rising cardiovascular diseases. Additionally, India has the highest tuberculosis patients globally, accounting for approximately 30% of the world’s total TB cases. For instance, in 2023, about 2.4 million new cases of TB were added in India.

Moreover, kidney diseases are also highly prevalent in India, affecting around 200 million Indians. The high burden of these diseases is increasing the demand for high-quality medications and drugs for the early treatment of diseases. Consequently, over 60,000 different drugs and pharmaceutical formulations are being produced annually in India, thus significantly contributing to the growth & development of the pharmaceutical industry in India.

India Pharmaceuticals Market Opportunity:

Rising Government Support – The Indian government is actively supporting the market growth by drafting several growth policies, such as the Pharma Vision 2020, the Production Linked Incentive Scheme (PLI), etc. For instance, under the PLI scheme (2020), the government has allocated nearly USD 800 million to help the drug manufacturing companies in producing intermediates, active pharmaceutical ingredients, etc., to avoid import dependence from other countries.

Additionally, along with the efforts for local trade, the improvement in trade relations of India with other countries is increasing the market potential, as it will be easy for India to widen its entry in the foreign pharmaceutical industry by growing the drug exports. For instance, in 2025, the India-UK Free Trade Agreement allowed Indian pharmaceuticals to enter the United Kingdom with 0% tariffs on Indian exports, creating ample growth opportunities for the market players. Moreover, in 2025, the Indian government will reintroduce 200% tax reductions on R&D expenses to increase pharmaceutical research in the country, thus contributing to the potential market growth & development.

India Pharmaceuticals Market Challenge:

Regulatory Hurdles & Intense Competition – The market is facing significant challenges, such as regulatory compliance, including stringent regulatory standards set by the Indian agencies, such as the Central Drugs Standard Control Organization (CDSCO), which are required to be strictly followed by the pharmaceutical industry. Due to these hurdles, the manufacturing facilities have to face complex and time-consuming approval processes, which delay the product launches in the country, thus hindering further market growth & expansion.

Moreover, small-scale companies face a financial barrier, which prevents them from entering the market and competing with large-scale production facilities with wider distribution networks and higher budgets. SMEs with constrained budgets have to reduce their spending on drug discovery, and they can only focus on manufacturing generic drugs, thus reducing the scope of novel drugs and restraining the innovations & development by the market players.

India Pharmaceuticals Market Trend:

Sustainable & Green Manufacturing Gaining Momentum – Market players are adopting sustainable & greener technologies in the drug manufacturing process due to the rising environmental concerns and to improve public health. These technological innovations are better than the traditional practices, thus are being adopted at a quick pace by the market leaders to reduce emissions and waste from the environment.

Several companies like Granules India, Lupin Pharmaceuticals, and Sun Pharma are significantly investing in the adoption of sustainable manufacturing practices. For instance, Lupin Pharmaceuticals (2024) started using renewable energy, including solar and wind energy, and also uses green chemistry methods in the drug manufacturing processes. Similarly, in 2023, Granules India collaborated with the Greenko Group to develop sustainable and energy-efficient areas called Green Pharma Zones for developing drugs through greener technologies. These practices are proactively transforming the India Pharmaceutical Market to grow & flourish during the forecast period.

India Pharmaceuticals Market (2025-30): Segmentation Analysis

The India Pharmaceuticals Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Product Type:

• Prescription Drugs
• Over-the-counter Drugs
• Biologics & Biosimilar

Out of these, the prescription drugs hold the largest market share of about 70%. The dominance is due to the high prevalence of diseases that require doctors' supervision for better treatments. Additionally, prescription drugs are trustworthy, as recommended by doctors, thus contributing to the revenue growth of this segment. These apply to widespread diseases, such as diabetes, TB, cardiovascular diseases, respiratory diseases, etc. Additionally, prescription drugs are cost-effective and easily available as compared to other types of drugs, including biologics, biosimilars, and over-the-counter drugs. Consequently, India produced billions of units of prescription drugs per year, showing their dominance in the India Pharmaceutical Market.

Based on Distribution Channel:

• Hospital Pharmacies
• Retail Pharmacies
• Online Pharmacies

Among these, the hospital pharmacies are dominating the market with an estimated market share of about 26%. The factor contributing to the segment revenue’s growth is the large volume of patient visits to hospitals for regular check-ups, so they prefer to take medications from the corresponding hospital pharmacies. Additionally, the customers’ trust related to the pharmacies in hospitals is also augmenting the size & volume of hospital pharmacies in the industry.

Hospital pharmacies are integrated with healthcare services such as diagnostics and treatment, making them convenient for patients to get prescribed medicines quickly, improving treatment adherence. This is due to some of the medications being prescription drugs only, that is only written in hospitals during checkups, so it makes it easier for the patients to purchase the drugs from the nearest distribution channel, that is, the hospital pharmacies, thus resulting in the highest market revenue from this distribution channel.

India Pharmaceuticals Industry Recent Development:

• 2025: Sun Pharmaceutical Industries Ltd. launched a new drug, called Fexuclue® (Fexuprazan), in India to treat erosive esophagitis, a condition where stomach acid damages the esophagus.
• 2025: Dr. Reddy’s Laboratories Ltd. signed a strategic collaboration with Alvotech to co-develop, manufacture, and commercialize a biosimilar of Merck’s blockbuster immunotherapy drug Keytruda

Gain a Competitive Edge with Our India Pharmaceuticals Market Report

1. India Pharmaceuticals Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. India Pharmaceuticals Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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