The Indian pharmaceutical sector expanded significantly in 2024, increasing by more than 5% as a result of strong government initiatives and expanding demand in all therapeutic areas. A lot of government support for bulk drug parks, more people needing respiratory, anti-infective, and gastrointestinal therapies, more work on making medicines more affordable through the Janaushadhi scheme, and more focus on manufacturing and research and development (R&D)," said Mr. Saransh Chaudhary, President, Global Critical Care, Venus Remedies Ltd., and CEO, Venus Medicine Research Centre.

The prime minister's opening of key centres of excellence under the National Institute of Pharmaceutical Education and Research (NIPER) was a high point of the year. These included centres in NIPER Ahmedabad for medical devices; NIPER Hyderabad for bulk medications; NIPER Guwahati for phytopharmaceuticals; and NIPER Mohali for antibacterial and antiviral drug research and development. These programs demonstrated a significant improvement in pharmaceutical research and innovation.

 "Pharmaceutical manufacturing has also received a big impetus with the PM inaugurating five projects under the Production Linked Incentive scheme for bulk drugs and medical devices across states like Gujarat, Telangana, Karnataka, Andhra Pradesh, and Himachal Pradesh," says Mr. Chaudhary. These activities are consistent with the National Pharmaceutical Policy's emphasis on lowering drug prices through local manufacturing of active pharmaceutical ingredients (APIs). 

 The development of the country's largest Janaushadhi Kendra in 2024 demonstrated the government's commitment to making medications more accessible to the general public. With approximately 14,500 Janaushadhi Kendras in operation, the network is continuously expanding to accommodate the demand for low-cost generic medications.

 India's liberalised foreign direct investment (FDI) policy has also encouraged strategic partnerships between domestic and multinational pharmaceutical companies. As a result, pharmaceutical exports increased from $2.13 billion in 2023 to $2.31 billion in 2024, indicating increased worldwide competitiveness for the Indian pharmaceutical industry.

 Looking ahead to 2025, the Indian pharmaceutical sector's growth outlook remains positive. "Key reforms and investments will play a crucial role in cementing India's place as a global pharmaceutical leader," says Mr. Chaudhary. By January 1, 2025, the updated Schedule M for Good Manufacturing Practices will be fully implemented, marking a watershed moment in the industry. The Drug Controller General of India emphasises that this upgrade aims to enhance quality and safety standards, thereby boosting global competitiveness.

R&D will be critical in determining the future of the Indian pharmaceutical industry. "India has long been a global leader in generic drug manufacturing, but the future lies in innovative drug development and cutting-edge research," says Mr. Chaudhary. Although R&D spending in India is less than 1% of GDP, compared to 3%–4% in industrialised countries, the government is taking strong action to close this gap. The National Research Development Corporation (NRDC) and the Research Linked Incentive Scheme are two policies that are meant to speed up development by lowering the time it takes for medicines to be cleared and encouraging new ideas.

 India's ambitious goal of growing its share of the global R&D market from 2% to 5% by 2025 is supported by strategic policies that encourage cross-ministerial collaboration, infrastructural development, and regulatory change. With persistent efforts, India has the potential to become a global hub for pharmaceutical innovation.