India’s pharmaceutical industry is estimated to grow by 8-9 percent in FY26.
India’s pharmaceutical (pharma) industry may register an annual growth of 8-9 percent in the upcoming financial year, FY26, which is a positive sign. This information has been given in a report released recently by India Ratings and Research (Ind-Ra). According to the report, the growth rate of the pharma industry is estimated to be between 7.5-8.0 percent during FY25, while this growth rate was 6.5 percent in the previous year, i.e., FY24. At the same time, the pharma industry achieved a growth of 9.9 percent in FY23.
Market status and key figures
India’s pharma market registered an annual growth of 7.5 percent in February 2025. This growth was mainly driven by a 5.2 percent increase in drug prices and the launch of new products, which saw a growth of 2.4 percent. However, volume growth declined marginally by 0.2 per cent. According to the report, the average growth rate in FY25 so far has been 7.3 percent, driven by a 5.5 percent increase in prices, a 2.7 percent increase in new launches and volume growth.
The “moving annual total” (MAT), that is, the overall 12-month sales figure of pharma products, grew 8.1 per cent in February. Cardiac therapies outperformed the pharma industry, growing MAT by 10.8 per cent and gaining 13.7 per cent monthly market share. This was followed by sectors such as gastroenterology, neurology and dermatology, which also performed well. However, anti-infectives and respiratory and gynaecology therapies reported weak growth in February.
India’s position in the global pharma industry
According to another report on the growth of India’s pharma industry, McKinsey & Company, the Indian pharma industry has grown at a CAGR (Compound Annual Growth Rate) of 8 percent. In addition, export rates are expected to increase by 9 percent in 2024. India has expanded its capabilities in APIs (Active Pharmaceutical Ingredients) and biotechnology and the growth rate in this sector has been twice the global average. Thus, India has become the largest supplier of generic drugs today.
Future prospects
India’s pharma industry has made an important place not only in the domestic market but also globally. Due to export growth and investment in research and development, this sector is expected to grow further in the coming years. Apart from this, many corrective steps are also being taken by the government regarding the pharma sector, which is further strengthening this industry.
Thus, India’s pharmaceutical industry is proving its strength in the global market and is expected to grow further in the coming years.
