Economic Survey: India’s Pharma Industry Moves Up the Value Chain

According to the Economic Survey 2025–2026, India’s pharmaceutical industry is shifting from a volume-driven paradigm to a value-driven one, with a growing emphasis on complicated generics, biosimilars, and innovation. 

According to the survey, India is the third-largest pharmaceutical producer in the world by volume, accounting for around 20% of the world’s demand for generics and exporting to 191 nations in FY25. With exports increasing at a compound annual growth rate of 7% between FY15 and FY25, the industry generated an annual turnover of ₹4.72 lakh crore in FY25. The US and Europe are two highly controlled markets that receive more than half of these shipments. 

In terms of pharmaceutical exports by value, India is currently ranked 11th in the world, making up over 3% of the total. Exports of medical devices have also increased dramatically, from $2.5 billion in FY21 to $4.1 billion in FY25, although there is still a lot of room for expansion, according to the Survey. 

Higher-value products and innovation are being prioritized by the industry in order to move up the value chain. The survey further stressed the necessity of streamlining international certification procedures and utilizing cutting-edge manufacturing technologies like 3D printing and artificial intelligence to lessen dependency on imports for medical equipment. 

India continues to lead the world in the provision of affordable vaccines and is producing more high-end medical equipment, indicating a move toward high-tech medical production.