India’s pharmaceutical industry, valued at around US$58 billion, is projected to reach US$120-130 billion by 2030 and US$400-450 billion by 2047. Growth is driven by rising lifestyle diseases, an aging population, increased focus on holistic health, and the growing consumerization of healthcare. India allows 100 percent FDI under automatic approval for greenfield investments and up to 74 percent for brownfield investments, with higher stakes requiring government approval, making it a prime destination for global investors seeking growth in the healthcare and life sciences domain.
India’s pharmaceutical industry ranks third globally in pharmaceutical production by volume and 14th by value, supported by a well-established domestic sector comprising approximately 3,000 drug companies and over 10,000 custom manufacturing units. India is the world’s largest provider of generic medicines, with a 20 percent global supply share by volume.
Often referred to as the “Pharmacy of the World,” the Indian pharmaceutical industry encompasses a broad range of segments, including generic drugs, over-the-counter (OTC) medicines, bulk drugs, vaccines, contract research, biosimilars, and biologics.
Indian pharmaceutical companies have firmly established their presence in the prescription markets of the U.S. and EU, with over 650 U.S. Food and Drug Administration (FDA)-approved manufacturing facilities operating in India. Per a November 2024 report in Forbes, India supplies 40 percent of the U.S. generic drug market and 25 percent of all medicines in the UK.
India’s fast-evolving and well-established pharmaceuticals industry presents lucrative investment opportunities, given its position as a global leader in the production of cost-effective generic medicines and vaccines as well as underserved domestic markets in Tier 2 and Tier 3 cities. With a current market size of around US$58 billion, pharmaceutical companies in India are poised for growth as new product frontiers emerge alongside biotechnology applications and the commercialization of healthcare.
