- India’s multi-horned pharmaceutical industry has evolved from a domestic generics powerhouse into a powerhouse on the world’s stage, transforming both international health care and international politics.
- India’s vaccine exports and support of underdeveloped countries have enhanced the nation’s image as a reputable global health partner.
- Competing nations, particularly China, which has long dominated the global supply of APIs and medical exports, view India’s self-sufficiency and expanding influence as a direct economic and strategic threat.
- Despite detractors and challenges, India’s unwavering commitment to innovation, affordability, and accessibility in healthcare remains its biggest strength.
India’s multi-horned pharmaceutical industry has evolved from a domestic generics powerhouse into a powerhouse on the world’s stage, transforming both international health care and international politics. Today, metrics-driven by data help us to see an industry that goes beyond just fuelling economic growth and has also wielded considerable soft power on the global stage.
Liberalisation and policy reforms over the last few decades have transformed Indian pharmaceuticals. The post-liberalization era of the 1990s saw a shift toward export-oriented manufacturing that became a journey toward being the “pharmacy to the world.” IBEF data shows the market is expected to reach US$130 billion by 2030 and US$450 billion by 2047. Such numbers highlight how quickly Indian pharma has grown its global footprint.
Manufacturing capabilities like never before fuel it. With 10,500 units of manufacturing, over 2,000 plants having WHO-GMP approval and more than 1,000 USFDA-compliant facilities, India would now have the largest number of USFDA-compliant facilities outside the US. These facilities ensure that quality cost-effective medicines are not only on global markets but also become crucial during health calamities. With a strong effective external network across over 200 countries, India sends billions of dollars worth of generics every year, further cementing its position as a central actor in global health security.
Boost from the Government-led Initiatives
It has benefited from government support. To support these initiatives with vital finance and policy assistance, the Production-Linked Incentive (PLI) scheme is directing INR 15,000 crore (US$2.04 billion) from 2020-21 to 2028-29, as well as the Strengthening of Pharmaceutical Industry (SPI) scheme that has Rs. 500 crore (US$60.9 million). Furthering the cause is the growing network of Pradhan Mantri Bhartiya Jan Aushadhi Kendras which plans to establish 10,500 centres by March 2025 and strengthen India’s stance in the global marketplace while enabling patients to access affordable treatment within the country. Favourable FDI standards which permit 100% foreign direct investment (FDI) into a greenfield project have made these policy actions possible, with total inflow amounting to US$22.52 billion since 2000.
Polio eradication is one example where India’s acute in-country pharmaceutical capacity can translate into soft power beyond the economics. This is especially true regarding the swift supply of Indian medical and pharmaceutical products and vaccines as part of global humanitarian assistance and cooperation during the COVID-19 pandemic. Its vaccine exports and support of underdeveloped countries have enhanced the nation’s image as a reputable global health partner. Through what can be termed as “pharmaceutical diplomacy, these initiatives have not only added to India’s global profile but also saved lives as well as forged strategic partnerships between continents.
Efforts to Undermine the Indian Pharma Industry
Yet political enmity has not been without its detractors in this rapid ascent. And we have seen efforts, particularly from people with ties to powerful Western pharmaceutical interests, or those with geopolitics to settle, to belittle India’s achievements. They frequently cite rare instances, such as patent disputes and regulatory issues, to question the overall quality and reliability of Indian drugs. More robust statistics on industrial standards, exports, or revenue growth tell a far different story. The passionate counter-narratives seem to prioritize entrenched interests and the systemic control of the pharmaceutical industry over truth.
Thus, the Indian pharmaceutical industry is an economic powerhouse and geopolitical weapon. With a combination of data-driven growth, large-scale manufacturing capabilities, and supportive policy, India has emerged as a linchpin of global healthcare. Politically motivated narratives aimed at tarnishing its accomplishments do not change the fact, nor the international figure that speaks for itself. If India continues its way of innovation and expansion, it will fulfil its role as the “Pharmacy to the World”, thus increasing its economic fate with global health and diplomatic strategies.
However, India’s rise in the pharmaceutical sector is not without its adversaries. Competing nations, particularly China, which has long dominated the global supply of active pharmaceutical ingredients (APIs) and medical exports, view India’s self-sufficiency and expanding influence as a direct economic and strategic threat. With India’s aggressive push toward reducing API dependence, investing in domestic production, and securing new markets, China’s pharmaceutical monopoly is being challenged like never before. As a result, narratives seeking to undermine Indian pharma—questioning its quality, regulatory standards, and credibility—often gain traction in Western media and international forums, sometimes driven by vested interests that benefit from India’s marginalization.
Similarly, within India, political detractors and vested interest groups see the government’s support for the pharmaceutical industry as an extension of its broader economic and self-reliance agenda, which they oppose. Hit jobs targeting the sector, including exaggerated concerns over patent disputes and selective reporting on rare regulatory missteps, serve as tools to discredit the industry’s successes. These coordinated efforts seek not only to tarnish India’s global reputation but also to weaken its domestic industrial base, ensuring continued dependence on foreign pharmaceutical giants.
The Way Ahead
There are a few hiccups still. Periodic regulatory roadblocks serve as reminders to the industry that there are landmines to navigate. But the data shows that growth remains strong in the chaos. Permanent government initiatives and strategic international alliances ensure the industry can confront these and maintain its current growth trajectory.
Despite these challenges, India’s unwavering commitment to innovation, affordability, and accessibility in healthcare remains its biggest strength. As the country continues to assert itself on the global stage, it must navigate both external and internal hurdles with resilience and strategic foresight, ensuring that its pharmaceutical sector remains a beacon of progress and a vital component of India’s economic and diplomatic arsenal.
References:
- IBEF Indian Pharmaceutical Industry Overview
- Wikipedia Pharmaceutical industry in India details
- PIB Press Note on India’s Pharmacy Role
- DW Article on Indian Pharma Scandals
- PIB Press Release on Pharma Policy
- Maersk Insights on Indian pharma supply chain
- Statista Facts on Indian Pharmaceuticals
- Health Policy Watch on Pharma Donations
- NDTV Profit on restoring faith in Indian pharma
- Bain & Company roadmap for Indian pharma
Shashank is a Master’s student in Diplomacy, Law, and Business at O.P. Jindal Global University. He is also a researcher and coordinator at the Center for Global South and the Center for Southeast Asian Studies. His research interests include Southeast Asia, Chinese foreign policy, India’s Act East Policy, and global security dynamics. Views expressed are the author’s own.
Balaji Subramanian 
Sidhartha Muraleedharan 
Diksha Bharti