India’s pharmaceutical industry is poised for growth, driven by increasing access to new medicines for obesity and diabetes and a broader shift toward innovation, according to industry leaders.
Growth Fueled by New Treatments
Improving access to Glucagon-like peptide-1 (GLP-1) receptor agonists – drugs that regulate insulin production and treat type 2 diabetes, high blood sugar, and obesity – is expected to be a key factor in the domestic pharmaceutical industry’s expansion. Sun Pharma Managing Director Kirti Ganorkar stated that improving access to GLP-1 treatments “will be a key driver for the Indian pharmaceutical industry, helping address the growing burden of lifestyle diseases such as obesity and diabetes.”
This growth is occurring as India transitions from being primarily a generic drug manufacturer to a center for pharmaceutical innovation. Dr. Reddy’s Laboratories Chairman Satish Reddy believes increased access to risk capital is crucial to this transformation, enabling India to become “the world’s hub for pharmaceutical innovation.”
Innovation and Collaboration
Industry leaders emphasize the importance of scientific excellence, regulatory agility, and collaboration to maintain India’s position as a trusted global partner. The Research, Development, and Innovation (RDI) scheme and the PRIP scheme, focused on R&D and novel drug delivery systems, are seen as positive steps toward strengthening industry-academia partnerships.
Aster DM Healthcare Founder & Chairman Azad Moopen highlighted the need for faster regulatory clearances, infrastructure development in tier-2 and tier-3 cities, and workforce skilling to translate scale and capital into improved healthcare outcomes.
Financial Outlook
Rating firm Icra anticipates revenue growth of 9 to 11 percent for Indian pharmaceutical companies in FY2026. This growth is projected to be supported by an 8-10 percent increase in the domestic market and a 15-17 percent rise in European markets. However, pricing pressures on drugs like Lenalidomide may moderate growth in the US market to 4-6 percent.
Reddy also noted the sector’s ambition to become a USD 500 billion industry by 2047, contributing to the vision of a ‘Viksit Bharat’ (Developed India).
Frequently Asked Questions
What are GLP-1 receptor agonists?
GLP-1 receptor agonists are drugs that treat type 2 diabetes, high blood sugar, and obesity by regulating insulin production.
What role does risk capital play in the future of the Indian pharmaceutical industry?
According to Dr. Reddy’s Laboratories Chairman Satish Reddy, increased access to risk capital can enable India to transition from being the world’s pharmacy to becoming a global hub for pharmaceutical innovation.
What is the projected revenue growth for Indian pharmaceutical companies in FY2026?
Rating firm Icra expects revenues to grow by 9 to 11 percent in FY2026.
As the Indian pharmaceutical industry evolves, will continued investment in innovation and infrastructure be enough to overcome challenges like regulatory hurdles and talent shortages?
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