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In brief
India’s pharmaceutical sector is entering a decisive phase. The industry’s long-standing identity as the world’s largest supplier of generics is converging with a sharper push toward pharmaceutical innovation, digital transformation, and global integration. The recent report by EY Parthenon and the Organisation of Pharmaceutical Producers of India (OPPI), "Fueling innovation, advancing equity: The power of partnerships and digital-first strategies driving Indian pharma's global dominance" positions the Indian pharma sector at a strategic inflection point, reinforcing the broader narrative around India’s pharmaceutical growth and innovation reflected in the OPPI pharma report 2025.
Over the last decade, the country’s GDP has doubled from US$2.1 trillion to US$4.3 trillion and the pharma sector continues to be a core contributor to public health and economic resilience.
India’s life sciences ecosystem is known for its generic leadership; it ranks third globally in volume and 14th in value, supplying approximately 20% of the world’s generics and 60% of global vaccines. This scale gives India a strong foundation to shift from a cost-driven engine to a high-value innovation center. India’s pharma leadership rests on three pillars that can together chart its course toward global prominence: pharma and vaccines majors manufacturing at scale , the growth of Contract Research Development and Manufacturing Organizations (CRDMOs) and the expansion of Global Capability Centers (GCCs). This aligns strongly with how the India life sciences ecosystem is evolving toward a more integrated pharma R&D and innovation ecosystem.
The transition is visible through increased investments in biologics, next-generation therapies and a vibrant biotech start-up landscape, supported by deeper collaborations, licensing and acquisitions. India’s COVID-19 vaccine success and recent CAR-T breakthroughs illustrate both capability and intent, strengthening its position in India pharmaceutical innovation 2025 narratives.
The report highlights the ways in which CRDMO/CDMO sector’s growth in India could reshape global supply chains. The global CRDMO market is projected to reach US$303 billion by 2028. Multinational innovators are increasingly outsourcing early research, development, analytics and manufacturing. Indian CRDMOs are moving up the value chain by investing in advanced modalities, digital QA/QC and integrated development pathways. This shift positions India not just as a manufacturing destination but as a strategic partner in complex, science-led innovation, underlining the momentum behind CRDMO/CDMO sector’s growth in India.
GCCs are emerging as another prominent pillar of India’s innovation play. Nearly half of the world’s leading life sciences companies now run GCCs in India, capitalizing on deep scientific talent and strong digital capabilities. These centers have evolved from efficiency-focused units into global innovation hubs that support drug discovery, trial optimization, digital therapeutics, safety analytics, regulatory operations and enterprise-wide transformation. These trends reinforce the growing maturity of India’s life sciences ecosystem.
The report makes it clear that India has the foundational support to become a leading global biopharma innovation hub by 2047. Sustainable growth will require coordinated action and convergence:
Strengthening partnerships among stakeholders, as EY and OPPI highlight, is critical for creating a robust ecosystem that fosters innovation. By working together, these entities can share resources, knowledge and best practices to drive progress. As these shifts accelerate, India’s pharma sector can play a significant role in improving affordability and access to innovative drugs worldwide.
The executive survey conducted as part of the report surface highlights three strategic imperatives for India’s next leap toward becoming a global biotech innovation hub:
These priorities sit at the heart of shaping a globally competitive India life sciences ecosystem and accelerating India’s pharmaceutical innovation.
India's pharmaceutical industry stands at a pivotal juncture—with the potential to redefine its global identity through innovation and collaboration. By addressing the gaps and focusing on ecosystem partnerships, high-value opportunities, regulatory reform and talent development, India can solidify its position as a global leader in pharmaceutical innovation and advanced manufacturing by 2047. Collective effort by all stakeholders will be crucial for India to meet its ambitious economic goals and significantly contribute to global health and well-being.
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