India's Emergence as a Global Health Powerhouse: Innovation, Affordability, and Impact

India has emerged as a global healthcare powerhouse during the past decade because of its focus on affordability, innovation, and inclusiveness in its pharmaceutical and healthcare industries.

India's pharmaceutical industry today ranks third in the world in terms of volume and 14th in terms of value. It is also the largest supplier of generic medicines, supplying about 20% of the world's generics, and has played a major role in supplying affordable vaccines across the globe.

In FY 2023–24, the Indian pharmaceutical sector recorded a turnover of ₹4.17 lakh crore at a growth rate of 10%+ per annum over the past five years. This consistent growth has made quality medicines at lower costs more available, enhanced healthcare infrastructure, and generated employment—from research labs and manufacturing units in small towns to sophisticated facilities in metro cities.

Government Initiatives Behind the Growth

The Indian government credits this transformation to policy guidance and flagship programs that have energized the sector.

1. Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP):
Through 15,479 Jan Aushadhi Kendras operational in the nation, the scheme provides generic medicines at costs slashed by up to 80% of the branded counterparts. A heart drug costing ₹500 is now priced at ₹100.

2. Production Linked Incentive (PLI) Scheme for Pharmaceuticals:
With an investment of ₹15,000 crore, the scheme encourages 55 projects for the production of high-value medicines, including those for cancer and diabetes. A supporting PLI scheme of ₹6,940 crore is targeted at the manufacturing of critical starting materials like Penicillin G, reducing our reliance on imports.

3. PLI Scheme for Medical Devices:
Backed by ₹3,420 crore, this scheme promotes indigenous manufacturing of key equipment such as MRI machines and cardiac implants, making India more self-reliant.

4. Promotion of Bulk Drug Parks Scheme:
This ₹3,000 crore scheme is creating mega drug manufacturing parks in Gujarat, Himachal Pradesh, and Andhra Pradesh, lowering costs and boosting production.

5. Strengthening of Pharmaceuticals Industry (SPI) Scheme:
With ₹500 crore in investment, the scheme encourages R&D and infrastructure modernization to enable Indian pharmaceutical companies to become globally competitive.

"These initiatives make medicines manufactured in India, for India, and for the world—providing high quality at low cost," the government said.

Global Vaccine Leadership

India's leadership in vaccine manufacturing is also significant. It supplies:

55–60% of UNICEF's vaccine requirement
99% of the WHO's DPT vaccine requirement
52% of BCG vaccines (for tuberculosis)
45% of measles vaccines

From Africa to the Americas, Indian-made vaccines continue to save millions of lives.

A Magnet for Investment and Talent

These initiatives have not only boosted manufacturing but also created thousands of jobs in research and production. In FY 2023–24 alone, the sector witnessed the arrival of ₹12,822 crore of foreign investment.

India allows 100% foreign direct investment (FDI) in greenfield pharmaceutical projects and medical devices, making it one of the most preferred locations for global healthcare companies.

Creating a Self-Reliant Future

India’s pharmaceutical industry is more than a success story—it’s a lifeline. With strong policy backing and a focus on domestic capabilities, India is charting a course toward a healthier and self-reliant future—not only for its own citizens but for the world at large.