Indian pharma industry might touch $500B by 2047
What's the story
India's pharmaceutical industry is gearing up for a major transformation in 2026, with an ambitious plan to become a $500 billion sector by 2047. The industry, which has grown from $3 billion to $60 billion in the last 25 years, is now focusing on innovation and next-generation drugs. This shift comes amid challenges like tariff fluctuations and global trade realignments.
Industry perspective
Indian pharma industry at a defining moment
Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, said that "Indian pharma stands at a defining moment and the next 25 years will be shaped by innovation, quality, and access." He emphasized that the coming five years will be crucial for translating policy momentum into measurable gains toward India's ambition of becoming a $450-500 billion industry by 2047.
Policy impact
PRIP and RDI schemes
Jain welcomed supportive policies such as the Promotion of Research and Innovation in Pharma MedTech sector (PRIP) scheme, which has received a strong response from the industry. He also highlighted the importance of the newly announced Research Development Incentive Scheme, with biomanufacturing as a key focus area. This comes at a time when drugs worth over $300 billion are set to lose exclusivity in the next seven years.
Market trends
Indian pharma companies making strides in innovation
Jain noted that leading Indian pharma companies are increasingly investing in high-value products, signing licensing agreements, and getting regulatory approvals for next-generation drugs. The IPA, which represents 23 leading drug firms including Sun Pharma, Cipla, Aurobindo Pharma, and Dr Reddy's Laboratories, plays a significant role in the industry's strategic direction. Another industry body, the Organisation of Pharmaceutical Producers of India (OPPI), also agreed that the Indian pharma industry is at a pivotal juncture.
Industry focus
OPPI emphasizes resilience and quality in manufacturing
OPPI Director General Anil Matai stressed the need for resilient, high-quality manufacturing ecosystems to tackle external headwinds. He welcomed the Centre's renewed focus on elevating manufacturing standards and strengthening intellectual property protection as key enablers for sustained investment in research and innovation. Matai also noted that Indian innovators are increasingly investing in complex generics, biosimilars, and next-generation therapies to meet the unmet patient needs both domestically and globally.
Healthcare outlook
NATHEALTH president highlights healthcare sector's pivotal decade
Ameera Shah, President of NATHEALTH, said the healthcare sector is entering its most pivotal decade starting 2026. She emphasized that with key therapies going off patent and new care models emerging, India has a chance to expand both access and global leadership. Shah stressed the need to convert technological possibilities into measurable health impact while ensuring innovation strengthens efficiency, equity, and patient outcomes.