What will it take for India to become a global pharma powerhouse by 2047?

Discover the insights from top industry leaders and explore how India is setting the stage to become the world’s pharma powerhouse.

In brief

• India’s pharma sector is set to reach US$450 billion by 2047, with a focus on self-reliance, innovation and global expansion.
• Next wave of industry growth will be driven by innovation in next-generation modalities, achieving self-reliance in API/KSMs, expanding CRDMO footprint and integrated healthcare.
• Based on insights from our CXO survey, quality focus, digital integration and skilled talent are seen as crucial enablers by over 80% of the experts to achieve the Viksit Bharat vision for the sector.

India’s pharmaceutical industry is on the brink of a major transformation as highlighted in a latest report by EY Parthenon (EY-P), in collaboration with the Organisation of Pharmaceutical Producers of India (OPPI). Titled ‘Viksit Bharat@2047: Transforming India from Pharmacy of the World to Pharma Powerhouse for the World’, the report explores key accomplishments for the Viksit Bharat pharma and healthcare sectors. The report also deep dives into key opportunity and focus areas for the industry to solidify its position as a global leader in the pharmaceutical sector in India by 2047, reaching a projected market size of US$450 billion.

In partnership with OPPI, EY Parthenon surveyed top executives from leading Indian and global pharmaceutical companies, startups, patient advocacy groups and several government organizations between September and October 2024. Their insights revealed innovation and integrated healthcare as key growth drivers for the industry, with a strong emphasis on quality focus, ecosystem collaboration, talent development and digital integration.

Strengthening the APIs and KSMs industry for self-reliance

The report highlights India’s progress in achieving self-reliance in the production of Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs). Pharma companies are adopting varied strategies to secure supply chain and reduce import dependence. Capacity and capability expansion are core to the strategy, with emphasis on re-engineering manufacturing process for more environment friendly and economical alternative synthesis route. In the CXO survey, 75% leaders emphasized the importance of embracing sustainable pharma manufacturing practices to reduce costs and improve environmental outcomes, aligning with global sustainability trends; 63% highlighted the need to invest in infrastructure and operational efficiency for gaining competitive edge; 38% suggested exploring innovative materials and manufacturing processes, and the need to move up the value chain.

India’s leap into next-generation therapeutics

The report provides a comparative view between the global and Indian pharma innovation landscape, the R&D progress in India across next generation therapeutic modalities, and the future imperatives to become the global innovation hub. Based on the CXO survey insights, experts agree that it is critical to articulate a unified and clear vision for next-generation innovation by 2047, and strategic partnerships between industry, government, academia, financers and startups are crucial for long-term success. An overwhelming 79% identified digital integration to play a pivotal role in drug discovery and clinical development. The integration of these technologies is expected to streamline operations and lead to breakthroughs in personalized medicine and novel therapies. Regulatory and policy support, culture and mindset shift, skilled talent development, robust R&D infrastructure, and increased financing were highlighted as other pressing needs. 

Strengthening India’s CRDMO market

India’s growth in the Contract Research, Development, and Manufacturing Organization (CRDMO) space is another big opportunity for the sector. The report discusses India’s strategic position and prospects amid the current macroeconomic trends and geopolitical shifts. All respondents agreed that the US BIOSECURE Act could present significant opportunities for the Indian CRDMO market. However, they called out the need for India CRDMO’s to elevate productivity and cost efficiency  to match global leaders. Compliance with global standards, quality mindset, focus on sustainability and data integrity were identified as other  priority areas. Biologics is another critical area, with 60% of CXOs highlighting the need to build scale and infrastructure in this space.

Emerging horizons with the convergence of Pharma, Digital and MedTech

The convergence of digital technology, pharmaceuticals and medical technology is creating unprecedented opportunities for innovation and growth in the healthcare sector. This synergy is not only revolutionizing personalized drug development, but also enabling a holistic patient-centric care model with the rise of ‘beyond the pill’ interventions, such as digital therapeutics, smart devices and connected mobile apps.

Future of integrated and accessible healthcare in India

The report also deep dives into the future of robust, connected healthcare where every citizen has access to the right treatment at the right time regardless of geographical or financial barriers. The Ayushman Bharat Digital Mission (ABDM) and the emerging ecosystem of digital natives is at the forefront of transforming the digital healthcare paradigm in India.

Around 75% experts highlight innovative healthcare financing mechanisms as vital to achieve health equity by ensuring universal access to basic and advanced medical care. Focus on preventive healthcare, early diagnosis and shift towards value-based healthcare have been identified as other crucial factors for improving healthcare outcomes.

Skilling for a new era of pharma innovation and global leadership

One of the most pressing challenges for India’s pharma sector is the shortage of skilled talent. According to the survey, 67% of leaders expressed concern over the limited availability of specialized talent, particularly in emerging areas like personalized medicine and biologics. To address this, experts emphasized that the industry should provide more internship opportunities and academia should collaborate with the industry to cultivate specialists with future-ready skill set.

Way forward

India’s pharmaceutical sector is at a critical juncture in its journey to achieving the ambition of US$450 billion and becoming a global pharma powerhouse by 2047. The journey ahead is promising and challenging. How much we exceed US$450 billion milestone by 2047 will depend on how the ecosystem levers play out.

Here is to the next 25 years of Indian Pharma and Healthcare – a phenomenon that the world will watch unfold and connive to make it happen