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India Strengthens Global Leadership in Pharmaceuticals and MedTech with Robust Exports, FDI Inflows, and Market Growth.

National | Dated: 18 Apr 2025

As of April 2025, India’s pharmaceutical industry ranks as the world’s 3rd largest by volume and 11th largest by value. The country is the largest global supplier of generic drugs, accounting for 20% of the world’s supply, and is also one of the leading suppliers of low-cost vaccines globally.

🎯 Key Highlights:

  • - India is the fourth largest medical device market in Asia, following Japan, China, and South Korea, and ranks among the top 20 global medical device markets. In the financial year (FY) 2023-24, the total annual turnover of the pharmaceutical sector was Rs. 4,17,345 crores, with exports contributing Rs. 2,19,439 crores.
  • - As per the FDI Policy 2020, India allows up to 100% foreign investment under the automatic route in meditech activities. In the pharmaceutical sector, 100% FDI is permitted in greenfield projects, while up to 74% FDI is allowed in brownfield projects under the automatic route.
  • - In the financial year 2024-25, from April to December 2024, FDI inflows in both pharmaceuticals and medical devices reached ₹11,888 crores. Additionally, the Department of Pharmaceuticals approved 13 FDI proposals worth ₹7,246.40 crores for brownfield projects during the same period.

💡 Other Important Facts:

  • (i) The Production Linked Incentive (PLI) Scheme, launched by the Government of India in 2020, is a transformative initiative aimed at boosting domestic manufacturing, attracting investments, reducing reliance on imports, and increasing exports. The scheme is designed to enhance India's competitiveness in various sectors, including pharmaceuticals.
  • (ii) The Department of Pharmaceuticals administers three PLI schemes to bolster manufacturing capabilities in the sector. Among them, the PLI Scheme for Pharmaceuticals, approved by the Union Cabinet on 24 February 2021, focuses on strengthening India’s pharmaceutical production and capabilities.
  • (iii) This PLI scheme has a financial outlay of ₹15,000 crores and offers financial incentives over six years (from FY 2022-23 to FY 2027-28) to 55 selected manufacturers. The scheme particularly supports the production of high-value pharmaceutical products across three key categories, further promoting India's growth in the global pharmaceutical market.

📚 Test Your Knowledge:

As of April 2025, which country is ranked as the world’s 3rd largest pharmaceutical industry by volume?

Correct Answer: India

🚀 Quick Recap: