The Indian pharmaceutical industry is projected to grow at over 15% per annum between 2025 and 2031, outperforming the global pharmaceutical industry, which is expected to grow at 5% annually during the same period. The market is estimated to reach US$ 130 billion by 2031, positioning India as the sixth largest pharmaceutical market globally by absolute size. Branded generics dominate the market, accounting for nearly 80% of revenues. The sector is expected to generate approximately 2,000,000 additional jobs by 2031.
India's biotechnology industry, encompassing bio-pharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics, is expected to grow at an average annual rate of 35%, reaching US$ 300 billion by 2031. Biopharma, including vaccines, therapeutics, and diagnostics, is the largest sub-sector, contributing nearly 62% of total revenues, valued at ₹12,600 crore (US$ 1.89 billion).
The Union Cabinet has approved amendments to the FDI policy in the pharmaceutical sector, allowing up to 100% FDI under the automatic route for the manufacturing of medical devices, subject to specified conditions.
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