Step into any pharmacy across the globe, and there’s a good chance the medicine you pick was made in India. Known as the “Pharmacy of the World.” India supplies 60% of global vaccines and 20% of generic medicines1. India has the third-largest pharmaceutical manufacturing industry in the world by volume. The pharma industry is ranked eleventh by value, is projected to reach $100 billion by 2025. Today, India has become the backbone of global healthcare—especially for affordable, high-quality medicines.
As a business strategist with over 30 years in the media industry. I’ve worked closely with leading voices in healthcare, infrastructure, and trade. At Trendvisionz, we’ve observed India’s pharma rise. India’s pharmaceutical engine is built on more than factories—it’s powered by resilience, innovation, and trust.
In this article, We’ll unpack the factors that make India’s pharma sector globally competitive. From generic drug leadership to regulatory strength, strategic pharma hubs, and the road ahead in 2025.
Let’s explore how India’s pharmaceutical manufacturing industry is shaping the future of healthcare worldwide.
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Generic Drug Manufacturers in India: A Global Force
India’s rise in the pharmaceutical manufacturing industry is rooted in its leadership in the generics segment. With a reputation for high quality and affordability, Indian generic medicines have become essential in healthcare systems across the world.
India’s Generics Industry: Trusted by the World
India has developed one of the world’s largest and most trusted networks of generic drug production. Today, the country manufactures over 60,000 generic brands across more than 60 therapeutic categories. These include life-saving treatments for infections, chronic conditions, and critical care.
Indian pharma companies are supplying:
- 40 percent of the generic medicines consumed in the United States.
- 25 percent of the United Kingdom’s generics demand
This reach reflects global confidence in Indian pharmaceutical quality, supported by strict regulatory compliance and cost efficiency.
What makes India a leader in generic drugs?
- India has more than 262 US FDA approved and 1,400 WHO-GMP certified manufacturing plants
- Indian manufacturers follow international standards while maintaining low production costs
- A skilled workforce and streamlined supply chain support consistent, high-volume production.
Generic drug manufacturers in India have made the country a cornerstone of global healthcare by delivering affordable medicines to over 200 countries.
Indian Pharma Export and Global Reach
India’s pharmaceutical manufacturing industry goes beyond scale—it has a strong global presence. With strong regulatory compliance, diverse formulations, and a reputation for cost-effective production, Indian pharmaceutical companies have built export relationships that span more than 200 countries.
In the financial year 2025, Indian pharma export reached USD $30 billion, reinforcing India’s position as a dependable global supplier. The United States continues to be the largest market, followed by the United Kingdom, Africa, and Southeast Asia. These regions rely on India not just for generic medicines, but also for complex formulations, vaccines, and active pharmaceutical ingredients (APIs).
If you see, currently it’s (pharmaceutical industry) about 42 billion dollars, half between the domestic sales, half between the exports. We expect that it will grow almost by three times in the coming decade, reaching almost 120 to 130 billion dollars by 2030. Truly, we believe that we are poised for a tremendous growth in the coming decade — Satish Reddy, Chairman, Dr. Reddy’s Laboratories
Indian pharma firms manage high-volume exports through robust global logistics systems, backed by a well-integrated supply chain and digital coordination. Advanced tracking, temperature-controlled shipping, and regulatory expertise allow for seamless cross-border shipping, even to highly regulated markets.
The scale of this outreach makes India not only a manufacturing powerhouse but a trusted pillar in global healthcare delivery. Its ability to serve diverse markets continues to strengthen its position as a leader in the international pharmaceutical trade.
Pharmaceutical Manufacturing Segments: From APIs to Biosimilars
India’s pharmaceutical manufacturing industry spans a wide spectrum of product categories. This includes Active Pharmaceutical Ingredients (APIs), Over-the-Counter (OTC) medicines, vaccines, biosimilars, biologics, and Custom Research Manufacturing (CRM). Each of these segments plays a key role in making India a comprehensive source for healthcare solutions.
The country is a leading player in bulk drug production, supplying essential raw materials to both domestic and international manufacturers. At the same time, India is advancing in high-value categories such as biosimilars2 and biologics, used in the treatment of cancer, autoimmune disorders, and other complex diseases.
Another fast-growing area is contract manufacturing in pharma. Indian Contract Research and Manufacturing Services (CRAMS) are gaining traction among global pharmaceutical companies for their ability to deliver quality at scale. With strong regulatory compliance and integrated infrastructure, India continues to support innovation and manufacturing across multiple therapeutic and product categories.
Regulatory Strength in the Pharmaceutical Manufacturing Industry
India’s pharmaceutical manufacturing industry is built not just on scale, but on regulatory strength. Global buyers rely on India’s ability to meet international standards for safety, quality, and compliance. This trust is reflected in the growing number of globally certified facilities across the country.
US FDA Approved Facilities in India
India has more than 262 US FDA approved pharmaceutical plants—the highest number outside the United States. These facilities span key pharma hubs and are equipped to manufacture generic medicines, APIs, and finished formulations. This makes India a preferred partner for exports to regulated markets like the US and Europe.
US FDA approved status provides assurance of stringent quality checks, advanced infrastructure, and validated processes. It also opens the door for Indian firms to participate in high-value global tenders and long-term supply contracts.
WHO-GMP Certified Pharma Units
India is home to over 1,400 WHO-GMP certified facilities. These plants follow Good Manufacturing Practices defined by the World Health Organization and are critical for ensuring global supply of essential medicines. The Central Drugs Standard Control Organization (CDSCO) certifies Indian pharma products, ensuring safety, efficacy, and regulatory compliance for global distribution.
WHO-GMP certification supports India’s role in bulk drug production and india api manufacturing. It allows Indian pharmaceutical companies to serve more than 200 countries with products that meet international safety and efficacy standards.
Major Pharmaceutical Manufacturing Hubs in India
India’s pharmaceutical manufacturing industry operates through a network of well-developed production clusters. These pharma hubs in India support everything from bulk drug production to complex formulations and R&D, enabling the country to maintain its global supply leadership.
Baddi: Formulations Hub
Set in the hills of Himachal Pradesh, Baddi is both the heart of India’s pharmaceutical industry and a bustling town where manufacturing meets momentum. It houses more than 1,000 manufacturing units, many of which are US FDA approved.
Here are some leading pharmaceutical manufacturing units located in Baddi, Himachal Pradesh, one of India’s largest pharma hubs:
- Venus Remedies Ltd. – Known for advanced injectable formulations and global regulatory approvals.
- Dr. Reddy’s Laboratories – Operates a major formulation facility here.
- Cipla Ltd. – One of its key plants for generics and respiratory products.
- Sun Pharmaceutical Industries Ltd. – Large-scale manufacturing of formulations.
- Alkem Laboratories – Produces tablets, capsules, and injectables.
- Torrent Pharmaceuticals – Well-established presence with high-capacity units.
- Mankind Pharma – Focused on domestic and export markets.
- Zydus Lifesciences (Cadila) – Manufactures a wide range of dosage forms.
- Lupin Ltd. – State-of-the-art facility for global markets.
- Indoco Remedies – Focuses on formulations and compliance-driven manufacturing.
Hyderabad: Bulk Drug and API Capital
Hyderabad (Telangana) today, has earned its reputation as India’s powerhouse for bulk drug production and active pharmaceutical ingredients (APIs). The City of Charminar seamlessly blends science, scale, and pharmaceutical innovation.
The city is home to India’s Pharma City initiative, a major infrastructure project focused on API production, R&D, and integrated manufacturing. Some key pharmaceutical units in Hyderabad include Dr. Reddy’s Laboratories, Aurobindo Pharma, and Divi’s Laboratories—renowned for their global reach, innovation, and large-scale manufacturing capabilities.
Ahmedabad and Vadodara: Manufacturing and R&D
Gujarat’s Ahmedabad and Vadodara regions are known for both formulations and strong research and development capabilities. Many multinational companies operate here due to robust compliance infrastructure and skilled manpower.
Goa, Mumbai, Sikkim: Regional Specialization
Goa focuses on export-driven formulations. Mumbai, the city that never sleeps, doubles as a dynamic commercial hub for global pharmaceutical giants. Sikkim, with its tax incentives, has become a rising center for formulation manufacturing in recent years.
Pharmaceutical Innovation in India: Research and Development at Scale
India’s pharmaceutical manufacturing industry is entering a new phase, driven by research and development, global investments, and supportive policy frameworks. The focus is shifting from volume to innovation, positioning India as a strategic R&D destination.
AI and Clinical Trials in India
Pharma companies are integrating artificial intelligence into drug discovery to reduce time and improve accuracy. Clinical trials in India are also expanding due to:
- Access to diverse patient populations
- Cost-effective trial management
- Regulatory alignment with global standards
These advantages make India a preferred location for late-stage trials and real-world studies.
Role of Global Capability Centres and Investors
Cities like Hyderabad, Bengaluru, and Pune are home to Global Capability Centres (GCCs) that support:
- Early-stage research
- Regulatory filings and compliance
- Data analytics and pharmacovigilance
Private equity and venture capital are increasingly backing biotech startups focused on biosimilars, biologics, and specialty drugs.
Support from Pharma PLI Scheme
The Pharma PLI scheme incentivizes innovation-led manufacturing. Companies investing in research and development, clinical trials, and high-value products receive performance-based subsidies. This is encouraging long-term investment in IP generation and new product pipelines.
The PLI Scheme for Pharmaceuticals is based on the strategy of “Atmanirbhar Bharat- Strategies for enhancing India’s manufacturing capabilities and enhancing exports in ten sectors”, which had been approved by the Union Cabinet- PIB
In a recent address at the third International Symposium on Health Technology Assessment (ISHTA 2025) held at Bharat Mandapam, New Delhi, Union Health Minister Shri JP Nadda underscored the Indian government’s unwavering commitment to building an inclusive and evidence-based healthcare system (PIB).
The government is focused on providing healthcare which is preventive, curative, palliative, and rehabilitative. Health Technology Assessment helps reinforce our commitment to inclusive, affordable, equitable, and accessible healthcare for all. It will play an important role in the realisation of Viksit Bharat by 2047 — Shri JP Nadda, Union Minister of Health & Family Welfare
With strong research talent and global collaboration, India is becoming a center for pharmaceutical innovation, not just manufacturing.
Why the Pharmaceutical Manufacturing Industry in India Stands Out
The pharmaceutical manufacturing industry in India holds a unique position in the global market due to its scale, cost efficiency, and operational depth. India offers a combination of manufacturing volume, skilled workforce, and regulatory compliance that few countries can match.
Competitive Advantages
India’s pharma sector benefits from:
- Low production and labor costs
- High-quality infrastructure and trained professionals
- Robust systems ensure quality control and alignment with global compliance
These strengths allow Indian manufacturers to produce medicines at significantly lower costs without compromising on quality.
End-to-End Manufacturing Capability
India has full control over the pharmaceutical value chain. From india api manufacturing to finished formulations, companies manage the process with efficiency and precision. This vertical integration reduces delays, ensures quality consistency, and supports faster delivery to both domestic and international markets.
The pharmaceutical manufacturing industry in India continues to lead through scale, reliability, and the ability to serve over 200 countries with confidence.
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NIPER and Academic Catalysts Powering Pharma Growth
India’s pharmaceutical manufacturing industry is strengthened by academic institutions that build talent and support innovation. These institutes ensure a steady flow of skilled professionals for both manufacturing and research and development.
Role of NIPER and Academic Institutions
The National Institutes of Pharmaceutical Education and Research (NIPERs) play a central role in preparing industry-ready professionals. They offer specialized programs in drug discovery, formulation, regulatory sciences, and biotechnology.
Other leading institutions such as IITs and IISc contribute through:
- Cutting-edge research in drug delivery and molecular biology
- Collaborations with pharma companies for pilot projects
- Technology transfer and startup incubation
Building Skill Pipelines
Academic pharma support goes beyond education. These institutions shape future leaders in pharma manufacturing, clinical research, and policy. Their strong industry linkages ensure curriculum relevance and practical exposure.
Together, NIPER and other academic hubs serve as critical enablers of India’s long-term pharma growth, driving quality, compliance, and innovation across the sector.
Contract Manufacturing in Pharma and Clinical Trial Services
India has emerged as a global hub for contract manufacturing in pharma. International companies rely on Indian firms for high-volume, cost-effective, and compliant production across multiple therapeutic categories.
Strength in Global Pharma Partnerships
India supports global pharma partnerships through:
- Large-scale manufacturing infrastructure
- Proven quality systems and audit readiness
- Strong track record in regulatory compliance
These partnerships extend beyond manufacturing. Clinical trials in India are growing due to diverse patient pools, skilled professionals, and streamlined regulations.
The combination of manufacturing strength and research support makes India a trusted partner for both developed and emerging markets.
Pharma PLI Scheme and Government Initiatives
The Indian government continues to shape a business-friendly environment through targeted schemes and strategic policies. The Pharma PLI scheme stands out as a major step toward self-reliance and global competitiveness.
Driving Growth through Policy
The Department of Pharmaceuticals offers production-linked incentives to companies that invest in R&D, API production, and advanced formulations. These incentives aim to increase the India pharma market size and reduce dependence on imports.
Transforming India’s Manufacturing Ecosystem: The Ripple Effects of PLI
This wave of investment has catalyzed a multiplier effect across the value chain. It plays a pivotal role in driving innovation and accelerating the adoption of automation and Industry 4.0 technologies. The pharmaceutical sector, in particular, has witnessed increased localization of key starting materials (KSMs) and active pharmaceutical ingredients (APIs). Moreover, with export figures touching ₹4 lakh crore, India’s manufacturing narrative is rapidly shifting from volume-driven to value-led growth.
Complementing the Pharma PLI scheme are broader pharmaceutical policy India initiatives, which focus on regulatory streamlining, ease of business, and innovation support. These efforts make India more attractive for global investors and manufacturers.
Challenges and Opportunities for the Indian Pharmaceutical Companies
Indian pharmaceutical companies face a mix of regulatory challenges and growth potential. As global demand increases, companies must stay agile to compete and comply.
Key Challenges
- Complex international regulations
- Intellectual property rights enforcement
- Global price competition
Despite these hurdles, opportunities are expanding. India is well-positioned in biosimilars and biologics, with growing investments in digital health technologies and sustainable manufacturing.
With rising pharma exports 2025 projections, Indian firms have the chance to lead in high-value segments3 while maintaining their edge in affordability and scale.
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FAQ: Pharmaceutical Manufacturing Industry
Why do global companies choose India for pharmaceutical outsourcing?
India offers end-to-end pharma solutions with cost efficiency, regulatory compliance, and skilled manpower. Its robust infrastructure supports API to finished formulation manufacturing for global pharma companies.
How does the Pharma PLI scheme support pharmaceutical manufacturing in India?
The Pharma PLI scheme incentivizes production of high-value drugs, APIs, and innovation-led projects, boosting India’s self-reliance and global export capacity across multiple therapeutic segments.
What role do Indian institutions play in pharmaceutical innovation?
NIPERs, IITs, and IISc provide skilled talent and research support to the pharmaceutical manufacturing industry, ensuring continuous innovation and alignment with global regulatory and scientific standards.
Why is India a key player in biosimilars and biologics?
With rising R&D investments and regulatory alignment, India leads in biosimilars development. It provides affordable access to complex biologic therapies across emerging and developed healthcare markets.
Conclusion: Future-Ready, Globally Relevant
India’s pharmaceutical manufacturing industry stands on a foundation of scale, skill, and compliance. With strengths in generics, APIs, and innovation, India continues to lead in global pharma delivery. As the industry evolves, the focus is shifting from volume to value—from manufacturing to innovation-driven growth.
Backed by policy support, academic collaboration, and rising global demand, India is well-positioned to strengthen its role in global pharma leadership. From affordable access to advanced biologics, the journey is only beginning.
For businesses and partners worldwide, India remains the trusted, future-ready hub of pharmaceutical manufacturing.
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About the Author: Anuj Mahajan is a Mass Communication Specialist, ICF Certified Coach & Corporate Trainer. Motivational Speaker / NLP Lifecoach. With expertise spanning filmmaking, business coaching, motivational speaking, blog writing, and authoring, he embodies versatility and mastery across diverse fields.
Chief Operating Officer: Nuteq Entertainment Pvt Ltd, and Co-Founder: Trendvisionz – A Premier Digital Marketing Agency in India
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Additional Resource:
- Department of Pharmaceuticals. (2025). Annual Report 2024–25. Ministry of Chemicals and Fertilizers, Government of India. ↩︎
- Chan JCN, Chan ATC. Biologics and biosimilars: what, why and how? ESMO Open. 2017 Mar 24;2(1):e000180. doi: 10.1136/esmoopen-2017-000180. PMCID: PMC5519784. ↩︎
- McKinsey & Company. (2020). India Pharma 2020: Propelling access and acceptance, realizing true potential. ↩︎
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