Triggered by an innovation mindset and commitment to patient centric care, the pharma sector is poised to grow its global footprint. The radiant star of the Indian economy, the pharma sector has contributed tremendously in terms of economic gains. The year 2024 has witnessed the sectors unwavering focus and commitment to improve healthcare access and affordability , helping India inch towards its vision of a Viksit Bharat.
Indian pharmaceutical sector has displayed relentless growth and the numbers say it all.FY 2024 has been a year of remarkable progress lined by significant milestones. Currently valued at USD 50 billion the market is poised to grow to USD 130 billion by 2030.This year saw the pharma sector making a substantial headway towards achieving the vision of a Viksit Bharat.The sector has scaled significantly fuelled primarily by impactful innovation and integration of digital technologies elevating India as the pharmacy of the world.
Cost -effectiveness,diverse product offerings which include generics, vaccines, OTC’s and bulk drugs,supreme quality, compliance to international standards, good manufacturing practices and protocols and skilled work force sets apart Indian pharma in the global space.
Indian pharma is a sector of many firsts, as per an EY-FICCI report 2024 , India is one of the largest suppliers of cost-effective vaccines and generics in the world.It also comes across as hub for affordable treatment of HIV.
2024 , saw the pharmaceutical landscape evolving amidst a dynamic market by focussing solely on innovation and self reliance.With an aim to realize the goals of Viksit Bharat, this sector is gunning on innovation while also ensuring that accessibility and affordability are uncompromised given that healthcare access is a fundamental right.
One of the primary goals that Indian pharma has worked towards in the last year has been improving the domestic manufacturing capabilities of API’s(Active pharmaceutical ingredients),KSM (Key starting material) and revolutionary therapies.
As per an EYP-OPPI Pharma report, India is currently positioned as the third largest in terms of volume and 14th in terms of value, while significantly contributing to 1.72% of the nations GDP. in the pharma sector.
The pharma export market valued at USD 55 billion, has also displayed incremental growth in the last year contributing USD 26.5 billion to the nations economy,with a YoY growth of 9.7%.These numbers are a testament to India unfolding as a global leader w.r.t pharma exports.Our country currently exports diverse range of pharmaceutical products across close to 200 countries. While exports had an impressive show , the domestic market too fared well , with a domestic consumption value of USD 23.5 billion.
The industry in the last year has exhibited impressive progress in the biologics, biosimilar and generics segment.In addition to this integration of digital technologies and IT systems have been leveraged to transform the pharma sector that is poised to strengthen India's stand on the global platform.
2024 has proved to be a favourable year for Indian pharma, with the biosecure act enforced by the US ,India is expected to gain stronghold in the CDMO and CRO segments.This could mean that India will be establish itself as hub for third party pharma services.
This year also saw the government reinforcing the revised schedule M regulations further boosting the quality and standards of close to 10,000 manufacturing units in order to be on par with global standards.
The year 2024 has been a mixed bag for the pharma sector which saw pharma co’s diversifying their product portfolio, expanding into international markets,producing API’s for new drugs,new formulations while on the contrary regulatory hurdles and supply chain issues have been a dampener for the market.
Industry Insights:
Anil Matai, DG, OPPI
“The year 2024 has been a pivotal chapter for India’s healthcare landscape, setting the stage for a transformative journey toward a more patient-centric and innovation-driven future. Landmark initiatives like the expansion of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY) and the modification of guidelines for PRIP scheme for promotion of domestic manufacturing of KSMs and API have demonstrated the government’s unwavering commitment to fostering an inclusive healthcare ecosystem. The notification of the Patent (Amendment) Rules 2024, waivers for Phase 3 clinical trials for certain categories of drugs already approved in well-regulated markets, including the USA, UK, Japan, Australia, Canada, and the EU and the government signing the much-awaited Trade and Economic Partnership Agreement (TEPA) with European Free Trade Association (EFTA) states comprising of Iceland, Liechtenstein, Norway, and Switzerland reflect India’s progressive strides toward creating a dynamic, globally competitive pharmaceutical sector that is driven by innovation. Complementing these advancements are ongoing efforts to enhance access, affordability and ethical marketing practices, reinforcing the foundation for a more robust and transparent industry. The introduction of the Uniform Code of Pharmaceutical Marketing Practices (UCPMP) is a testament to the government’s efforts to make the pharmaceutical industry more transparent and ethical. While the functioning of SEC requires more streamlining, it surely has become more structured and efficient.
As we move into 2025, the Indian pharmaceutical sector stands poised for profound transformation, driven by the synergy between government initiatives and industry dedication. Technological advancements like AI, machine learning and precision medicine are set to revolutionize drug discovery, manufacturing and patient care. Strengthened regulatory frameworks will enable the swift adoption of innovative therapies while prioritizing patient safety. A focus on research excellence and innovation will position India as a global hub for high-quality, affordable pharmaceuticals. Collaboration between policymakers, academia and industry stakeholders will address unmet medical needs, particularly in underserved regions. Adherence to UCPMP will uphold ethical standards, fostering trust and transparency across the healthcare ecosystem.
Together, forward-thinking government policies and the pharmaceutical industry’s relentless drive will not only propel India to the forefront of global healthcare innovation but also ensure that world-class,patient-centric solutions are within reach for all.
CDMO sector
Alex Del Priore, Senior Vice President – Manufacturing Services, Syngene International Ltd.
The global pharmaceutical industry is undergoing a pivotal transformation. Companies are reassessing their supply chain strategies due to vulnerabilities exposed by the COVID-19 pandemic and rising geopolitical tensions. This shift reflects a deeper strategic recalibration, where resilience is essential for operational continuity and long-term success.
At Syngene, we recognized the need for a China-independent supply chain about 18 months ago, and we've seen increasing traction with our clients, with almost 30% of RFPs today requesting alternative supply sources. India is emerging as a key player in this new ecosystem, offering a skilled workforce and competitive costs, making it an attractive alternative for companies looking to diversify.
However, this potential hinges on maintaining a steadfast focus on quality and compliance. Our 'Anytime Audit Ready' approach demonstrates how a proactive focus on quality assurance can build trust with global partners.
Innovation is another critical pillar of this transformation. Advanced technologies like AI and automation are necessary for building a resilient supply chain. At Syngene, we invest in proprietary AI tools to drive efficiency and innovation.
Collaboration across the pharmaceutical ecosystem is equally important. Partnerships among companies, suppliers, and academic institutions create a cohesive network that supports every stage of the supply chain. Moreover, government support, through initiatives like the Production-Linked Incentive scheme, has been essential for fostering a self-reliant pharmaceutical ecosystem.
Ultimately, these changes signal a shift towards a future-ready supply chain, prioritizing resilience, sustainability, and operational excellence. By embracing these changes, we can redefine the pharmaceutical industry as a resilient and innovative force, prepared to tackle both current and future challenges.
Nutraceutical industry
Prakash Kumar Guha, Managing Director, Zuventus Healthcare Ltd
The nutraceutical sector has grown rapidly in the last few years. The global nutraceuticals market is expected to grow to $868.38 billion by 2031. This year the sector was project to grow up to $460.18 billion! The market is currently driven by the consumers’ demand for safe products with proven benefits. As a result, emerging brands are focusing on high efficacy products. The “feel good, look good” trend also surged, which pivoted the focus to cosmeceuticals for external nourishment and nutraceuticals for internal health.
The Indian market was estimated at USD 30.37 billion in 2024 and is expected to reach USD 34.34 billion in 2025. The increased focus on individual health and preventive nutrition, has paved a way for many brands to tap into categories like probiotics, protein supplements, gut health supplements and innovative formulations such as gummies, chewables, sprays and so much more. The influx of new entrants in the market has established a competitive yet promising market to cater to the modern consumer’s preferences of effectiveness and safety, demonstrating the sector's ability to swiftly adapt to evolving demands and leverage technology to enhance product delivery systems.
However, one of the major challenges in the country is our complex compliance system which needs to ensure regulatory requirements are met across regions. Maintaining safety standards are a top priority, as regulatory bodies enforce strict rules and require comprehensive safety assessments and risk management strategies There is a critical need for trusted players to step up and redefine industry standards.
The increasing demand for transparency in products backed by science, emphasize the urgent need for trusted solutions within the nutraceutical industry.
Antimicrobial injectable segment
Mr. Rajnish Rohatgi CEO Orchid AMS (a division of Orchid Pharma Pvt. Ltd.)
The Antimicrobial injectable segment of pharmaceutical industry has maintained its trend of recent years, with single digit growth rates. The Antimicrobial segment challenge is the lack of more new drugs, forcing the industry and doctors to rely on the old generic drugs – where brands lack anything new to educate doctors and differentiate themselves. Coupled with low barriers of entry and excess capacity, consolidation of hospital beds at the top tier, leading to price and margin erosion.
In the absence of new drugs, pharmaceutical industry as well as hospitals are continuing to push for sales and consumption of these broad-spectrum drugs, despite such over-use resulting in increasing Anti-Microbial Resistance.We have seen a few acquisitions in last 12 months – eg., acquisition of Biocon’s antibiotic division by Eris Lifesciences, and Emcure has acquired the critical care business of Sanofi.This hyper-competition and excess capacity in this segment will certainly result in some shake out in coming years and more acquisitions.
Forum Bhagat – Managing Director of Novo Medi Sciences (Novo Group)
In 2024, the critical role of preventive healthcare in addressing emerging diseases like Hand, Foot and Mouth Disease, RSV, Dengue and Malaria became more apparent. Technological innovation, public-private partnerships and increased community awareness were pivotal in improving vaccine accessibility and uptake. Tailored healthcare solutions for India's unique epidemiological profile emerged as essential to addressing public health needs effectively.
Weak cold chain infrastructure, affordability issues and misconceptions hinder vaccine access in India, especially in remote areas. These challenges compromise immunization efforts and lower coverage rates for vaccine-preventable diseases like chickenpox, further exacerbated by a lack of awareness and widespread misinformation.
Conclusion
The transformation in the pharma sector in the year 2024 has been largely influenced by digital technology adoption, encouraging government incentives and policies and a favourable regulatory environment. This sector which is at the cusp of transformation today symbolises excellence with a focus on high quality medications and therapies. Steeped in opportunities the Indian pharmaceutical sector is all set to clinch the spotlight on the global stage.
