India's Pharma Sector to Reach $70.3B by 2027, Driven by Exports

The pharmaceutical sector is projected to reach $70.3 billion, with a 9 percent growth expected from FY25 to FY27, fueled by rising exports to nations such as the US, as well as by new products introduced by Indian pharmaceutical firms. It is anticipated that the ratio of exports to domestic sales will stay at 51:49.

The industry is expected to increase by $50 billion within three years (from 2027 to 2030), with the general consensus that the Indian pharmaceutical industry is on track for substantial long-term growth.

According to CareEdge, there will be significant opportunities arising from patent expiries. Approximately $125 billion in total global drug sales are projected to lose patent protection from 2024 to 2026, creating a $3.5-4 billion market for generic medicines that Indian firms can benefit from.

In addition, it is anticipated that the market share of contract development and manufacturing organisations will increase from $5-8 billion in FY24 to $7-13 billion by FY27, experiencing a compound annual growth rate (CAGR) of 13% to 18%. India's infrastructure and having the highest number of USFDA plants outside the US will help drive the growth. However, there is still a significant dependence on China for pharmaceutical imports, which remains a persistent worry, as 69 percent of bulk drugs imported by value came from China in FY25.