Report Overview

India Pharmaceuticals Market - Industry Trends & Forecast 2031

India Pharmaceuticals Market size was estimated at USD 60.83 billion in 2024. During the forecast period from 2025 to 2031, India Pharmaceuticals Market size is projected to expand at a CAGR of 10.6%, reaching a value of USD 123.14 billion by 2031. India Pharmaceuticals Market is driven by rising chronic disease prevalence, an aging population, and expanding health insurance coverage. Government initiatives like Production Linked Incentive (PLI) schemes and Ayushman Bharat enhance accessibility and affordability. Increased R&D investment, digital health adoption, and demand for generics and biosimilars fuel innovation and exports. Growing disposable incomes and urbanization boost domestic consumption, while India’s cost-effective manufacturing and skilled workforce position it as a global leader in generic drug and vaccine production.

Pharmaceuticals – Overview

The pharmaceuticals market encompasses the research, development, production, and marketing of medications that prevent, treat, or manage diseases. It plays a vital role in global healthcare by delivering innovative therapies and life-saving drugs. Driven by advancements in biotechnology, regulatory frameworks, and rising health demands, the sector includes both generic and branded drug manufacturers. With a strong emphasis on safety, efficacy, and compliance, pharmaceutical companies contribute significantly to public health, economic growth, and scientific progress across the world.

India Pharmaceutical Market 

Growth Drivers

Expansion of Health Insurance Coverage

The expansion of health insurance coverage by improving access to essential medications is significantly boosting the growth of India Pharmaceuticals Market. Government schemes like Ayushman Bharat and private sector innovations are reducing out-of-pocket expenses, enabling broader treatment uptake. With over 500 million citizens covered and rising awareness, demand for chronic disease therapies, branded generics, and preventive care drugs is surging. This shift is driving consistent growth in domestic consumption and encouraging pharmaceutical companies to scale production and distribution.

Challenges

Regulatory Delays in Drug Approvals

Regulatory delays in drug approvals are hindering growth in India Pharmaceutical Market. The transition to centralized online portals like ONDLS has disrupted the timely issuance of WHO-GMP and CoPP certifications, affecting exports to key global markets. Reclassification of existing drugs and technical glitches in approval systems further slow processes down. These bottlenecks reduce competitiveness, strain supply chains, and risk losing international buyers to rival nations. Industry stakeholders are urging phased rollouts and policy revisions to restore efficiency.

Impact of Escalating Geopolitical Tensions on India Pharmaceutical Market 

Escalating geopolitical tensions, especially U.S. tariff threats, are straining India’s pharmaceutical exports. Proposed 200% duties on drug imports to the U.S.—India’s largest pharma market—could disrupt supply chains, inflate costs, and reduce competitiveness. Trade route instability in conflict zones like the Middle East adds further risk. Manufacturers face uncertainty in regulatory approvals and shifting global alliances. To mitigate the impact, Indian firms are exploring alternative markets, boosting domestic production, and lobbying for favorable trade agreements.

India Pharmaceutical Market 

Segmental Coverage

India Pharmaceutical Market – By Therapeutic Category

By therapeutic category, India Pharmaceutical Market is divided into Anti-Infectives, Cardiovascular, Gastrointestinal, Anti-Diabetic, Respiratory, Dermatology, Musculoskeletal System, and Central Nervous System segments. The anti-infectives segment represents the largest in India Pharmaceutical Market. This dominance stems from India’s high burden of infectious diseases, widespread antibiotic use, and strong demand for antimicrobial therapies. The segment benefits from extensive distribution networks and government health programs targeting communicable diseases. Despite emerging growth in chronic therapies like cardiovascular and anti-diabetic drugs, anti-infectives continue to lead in volume due to their essential role in public health.

India Pharmaceutical Market – By Drug Type

Based on drug type, India Pharmaceutical Market is divided into Generic Prescription Drugs, Over the Counter (OTC) Medications, Active Pharmaceutical Ingredients (APIs), Biosimilars, and Vaccines segments. The generic prescription drugs segment dominates India Pharmaceutical Market by drug type. The generics segment thrives due to India’s cost-effective manufacturing, strong regulatory compliance, and vast portfolio of over 60,000 generic brands across 60 therapeutic categories. With exports to over 200 countries and high domestic demand for affordable treatments, generics remain the backbone of India’s pharma industry. Despite growth in biosimilars and vaccines, generics lead in both production scale and market penetration.

India Pharmaceutical Market – By Route of Administration

By route of administration, India Pharmaceutical Market is divided into Inhalation, Parenteral, Topical, and Transdermal segments. Parenteral products segment represents the largest and fastest growing segment in India Pharmaceutical Market by route of administration. The segment benefits from rising demand for sterile injectables, biologics, and large-volume parenteral formulations. Hospitals and healthcare facilities dominate usage, accounting for over 95% of parenteral drug consumption. The segment’s growth is fueled by increasing surgical procedures, chronic disease prevalence, and physician preference for single-dose therapies. Despite oral formulations holding the majority share, parenteral drugs are gaining traction due to their rapid absorption, high bioavailability, and suitability for critical care settings.  

India Pharmaceutical Market – By Region

Geographically, India Pharmaceutical Market is divided into North India, West India, South India, and East India. North India holds the largest share of India Pharmaceutical Market. This dominance is driven by its dense population, advanced healthcare infrastructure, and strong demand across both urban and rural areas. Strategic logistics networks and initiatives like Delhi’s Mohalla Clinics further enhance accessibility. While South India is growing rapidly, North India remains the key hub for distribution, consumption, and pharmaceutical innovation across the country.

Competitive Landscape

Major companies operating in India Pharmaceutical Market include Sun Pharmaceutical Industries Ltd, Dr. Reddy’s Laboratories Ltd, Cipla Ltd, Lupin Ltd, Aurobindo Pharma Ltd, Torrent Pharmaceuticals Ltd, Zydus Lifesciences Ltd, Glenmark Pharmaceuticals Ltd, Alkem Laboratories Ltd, Intas Pharmaceuticals Ltd, and Biocon Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Therapeutic

• Anti-Infectives

• Cardiovascular

• Gastrointestinal

• Anti-Diabetic

• Respiratory

• Dermatology

• Musculoskeletal System

• Central Nervous System  

By Drug Type

• Generic Prescription Drugs

• Over the Counter (OTC) Medications

• Active Pharmaceutical Ingredients (APIs)

• Biosimilars

• Vaccines

By Route of Administration

• Inhalation

• Parenteral

• Topical

• Transdermal

By Region

• North India

• West India

• South India

• East India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Pharmaceuticals Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Expansion of Health Insurance Coverage
         2. Rising Demand for Chronic Disease Therapies
         3. Government Support via Production Linked Incentive (PLI) Schemes     
      2. Restraints
         1. High Dependence on Imported Active Pharmaceutical Ingredients (APIs)
         2. Regulatory Delays in Drug Approvals
         3. Price Controls under National List of Essential Medicines (NLEM)
      3. Opportunities
         1. Growth in Biosimilars and Biologics Segment
         2. Digital Health and E-Pharmacy Expansion   
      4. Challenges
         1. Infrastructure Gaps in Cold Chain and Advanced Manufacturing
         2. Limited Investment in Research and Development (R&D)  
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Pharmaceuticals Market: Marketing Strategies
5. India Pharmaceuticals Market: Pricing Analysis
6. India Pharmaceuticals Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Therapeutic Category
         1. Anti-Infectives
         2. Cardiovascular
         3. Gastrointestinal
         4. Anti-Diabetic
         5. Respiratory
         6. Dermatology
         7. Musculoskeletal System
         8. Central Nervous System   
      2. By Drug Type
         1. Generic Prescription Drugs
         2. Over the Counter (OTC) Medications
         3. Active Pharmaceutical Ingredients (APIs)
         4. Biosimilars
         5. Vaccines
      3. By Route of Administration
         1. Inhalation
         2. Parenteral
         3. Topical
         4. Transdermal
      4. By Region
         1. North India
         2. West India
         3. South India
         4. East India
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Nigeria Insurance Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on India Pharmaceuticals Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Sun Pharmaceutical Industries Ltd
   2. Dr. Reddy’s Laboratories Ltd
   3. Cipla Ltd
   4. Lupin Ltd
   5. Aurobindo Pharma Ltd
   6. Torrent Pharmaceuticals Ltd
   7. Zydus Lifesciences Ltd
   8. Glenmark Pharmaceuticals Ltd
   9. Alkem Laboratories Ltd
   10. Intas Pharmaceuticals Ltd
   11. Biocon Ltd  
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1.  Primary & Secondary Research
    2.   Quantitative Research
    3.   Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5.   Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Nigeria Insurance Segmentation

Figure 2       India Pharmaceuticals Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2024

Figure 4       India Pharmaceuticals Market Size, By Value (USD Billion), 2019–2031

Figure 5       India Pharmaceuticals Market Share, By Product Type, By Value, 2019–2031

Figure 6       India Pharmaceuticals Market Share, By Therapeutic, By Value, 2019–2031

Figure 7       India Pharmaceuticals Market Share, By Route of Administration, By Value, 2019–2031

List of Tables

Table 1         India Pharmaceuticals Market Size, By Value (USD Billion), 2019–2031

Table 2         India Pharmaceuticals Market Size, By Therapeutic, By Value, 2019–2031

Table 3         India Pharmaceuticals Market Size, By Drug Type, By Value, 2019–2031

Table 4         India Pharmaceuticals Market Size, By Route of Administration, By Value, 2019–2031

Table 5         India Pharmaceuticals Market Size, By Region, By Value, 2019–2031

Table 6 Sun Pharmaceutical Industries Ltd Company Overview

Table 7 Sun Pharmaceutical Industries Ltd Financial Overview

Table 8 Dr. Reddy’s Laboratories Ltd Company Overview

Table 9 Dr. Reddy’s Laboratories Ltd Financial Overview

Table 10 Cipla Ltd Company Overview

Table 11 Cipla Ltd Financial Overview

Table 12 Lupin Ltd Company Overview

Table 13 Lupin Ltd Financial Overview

Table 14 Aurobindo Pharma Ltd Company Overview

Table 15 Aurobindo Pharma Ltd Financial Overview

Table 16 Torrent Pharmaceuticals Ltd Company Overview

Table 17 Torrent Pharmaceuticals Ltd Financial Overview

Table 18 Zydus Lifesciences Ltd Company Overview

Table 19 Zydus Lifesciences Ltd Financial Overview

Table 20 Glenmark Pharmaceuticals Ltd Company Overview

Table 21 Glenmark Pharmaceuticals Ltd Financial Overview

Table 22 Alkem Laboratories Ltd Company Overview

Table 23 Alkem Laboratories Ltd Financial Overview

Table 24 Intas Pharmaceuticals Ltd Company Overview

Table 25 Intas Pharmaceuticals Ltd Financial Overview

Table 26 Biocon Ltd Company Overview

Table 27 Biocon Ltd Financial Overview