A Year of Big Changes and Challenges for the Pharma Industry
The previous year was a rollercoaster journey for the Indian pharmaceutical industry. The year started with uncertainty, but towards the end it was full of good news. The drug makers proved to be strong and innovative.
The worth of the Indian Pharma market is now 55 billion dollars and is having a steady growth of about 10% each year. It is expected that before 2030, it will cross the hundred billion dollar mark. The country also exported over thirty billion dollars worth of medicines and has gotten a spot as the world’s largest supplier of generic drugs. The industry also plays a major role in global vaccine production.
In 2025, it was not just about the number. The companies learnt to adapt to the changes and identify their place in the industry.
Question about America
This year, one of the biggest wake-up calls was received from the United States for the Pharma Industry. There was a talk around the fact that they would implement a huge tariff of 100% on imported patented and branded drugs. In this, there was no big hit on the generic medicines of India. We got to know that even though the US has the largest pharma market, it highly depends on other countries for medicines.
This situation did not push India into a crisis. It was a warning sign to be prepared well in advance. It showed that it is risky to be dependent on a single market, even the US. In response to this, the pharma sector of India started looking for other places like Europe, Latin America, Africa, and Southeast Asia to expand. There are even companies that are setting up manufacturing units in America itself to protect their spot in the business.
Struggles in India
The Indian industry had to face the changes in the structure of taxes. There was a short-term difficulty with the supply chain and compliance because of the need to adjust to the Goods and Services Tax system. This happened during the mid-year. But eventually, over a period of time, it reduced, and medicines for chronic conditions like diabetes and heart disease continued to perform well.
In the same year, the investment sector was also clearly visible. A lot of companies went public, and so many investors showed interest, especially in speciality medicines, businesses focused on research and innovation.
The Boom on Weight-Loss Drug
There was big news on the development of GLP-1 drugs. The reach for it in the pharma market was high. These are the drugs that are used for diabetes and weight loss. For these medications, the Indian market is expected to cross two thousand crore rupees by the ned of this financial year. Also, the patents on a few drugs will end in 2026, so this would allow the companies to make cheaper versions of the drug. This will make India a major and important player in the sector that is rapidly growing.
Getting Bigger and Better
The pharma companies in India are making a move strategically by buying a few other businesses for them to grow stronger. In the past years, we could see that a lot of companies were acquired, and for the companies that bought them, it helped them to expand on a global level, and they also built expertise in specialized areas. This trend is expected to continue even in the upcoming years.
India is also working towards upgrading the manufacturing standards in order to meet the global standards and guidelines. This will create a situation where they have to spend more on compliance. But it will be worth it because they will get more reputation and can showcase themselves as the most trustworthy pharma manufacturers.
Innovation
One thing that is more encouraging is the focus of India on innovation. Companies are making huge investments to develop biosimilars and using AI in drug discovery and manufacturing. There was even a first homegrown CAR-T therapy by India, which became a hit cancer treatment.
Now in 2026, the pharma companies are looking forward to expanding their markets, follow and maintain high quality standards, and also focus on developing advanced medicines. The pharma industry is all ready to handle challenges and play a very big role in the healthcare sector globally.
