India Pharmaceutical Manufacturing Market (By Dosage Form: Tablets, Injectables; By Manufacturing Type: In-house, Contract; By Therapeutic Category: Endrocrinology, Cardiovascular) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The India pharmaceutical manufacturing market size was estimated at USD 17.82 billion in 2023 and it is expected to surpass around USD 48.54 billion by 2033, poised to grow at a CAGR of 10.54% from 2024 to 2033.

Key Pointers

• By Dosage Form, the tablets segment held the largest revenue share of 46% in 2023.
• By Dosage Form, the injectable segment is expected to expand at the highest CAGR from 2024 to 2033.
• By Manufacturing Type, the contract manufacturing segment contributed the largest market share of 54% in 2023.
• By Therapeutic Category, the cardiovascular segment generated the maximum market share of 14% in 2023.

India Pharmaceutical Manufacturing Market Growth Factors

The growth of the pharmaceutical manufacturing market in India is propelled by several key factors. Foremost among these is the country's significant cost advantage, driven by lower labor and manufacturing costs compared to many developed nations. Additionally, India boasts a skilled workforce comprising scientists, researchers, and technicians, contributing to the high-quality standards maintained by its pharmaceutical companies. Stringent regulatory compliance enforced by authorities such as the Central Drugs Standard Control Organization (CDSCO) ensures adherence to international quality norms, bolstering the credibility of Indian pharmaceutical products on the global stage. Furthermore, substantial investments in research and development (R&D) foster innovation, leading to the development of new drug formulations and therapies. 

India Pharmaceutical Manufacturing Market Trends:

• Rise in Contract Manufacturing: The Indian pharmaceutical manufacturing market is witnessing a surge in contract manufacturing arrangements, driven by increasing outsourcing by global pharmaceutical companies. This trend allows Indian manufacturers to leverage their cost-effective production capabilities and high-quality standards to cater to the demand for contract manufacturing services.
• Focus on Biosimilars: With the expiration of patents for several biologic drugs, there is a growing focus on biosimilars in the Indian pharmaceutical manufacturing sector. Indian companies are investing in the development and production of biosimilar drugs, aiming to capture a significant share of the global biosimilars market.
• Digital Transformation: The adoption of digital technologies is reshaping the pharmaceutical manufacturing landscape in India. From smart manufacturing and automation to data analytics and digital supply chain management, companies are embracing digital transformation initiatives to enhance efficiency, quality, and compliance across the manufacturing process.
• Expansion of Specialty and Niche Segments: Indian pharmaceutical manufacturers are diversifying their product portfolios to include specialty and niche segments such as oncology, neurology, and rare diseases. This strategic expansion allows companies to target specific therapeutic areas with high demand and unmet medical needs, driving growth and differentiation in the market.
• Investments in Research and Development: Continued investments in research and development (R&D) are driving innovation and the development of novel drug formulations and delivery systems. Indian pharmaceutical companies are collaborating with academic institutions and research organizations to accelerate the discovery and development of new pharmaceutical products, positioning India as a hub for innovation in the global pharmaceutical industry.
• Sustainability and Green Initiatives: There is a growing emphasis on sustainability and environmental responsibility in the pharmaceutical manufacturing sector in India. Companies are adopting eco-friendly practices, reducing waste generation, and optimizing energy consumption to minimize their carbon footprint and contribute to sustainable development goals.

India Pharmaceutical Manufacturing Market Restraints:

• Intellectual Property Rights (IPR) Challenges: Intellectual property protection and patent regulations pose significant challenges for Indian pharmaceutical manufacturers. The complex landscape of intellectual property rights often hinders the development and commercialization of innovative drugs, limiting market access and growth opportunities for Indian companies.
• Quality Control Concerns: Maintaining consistent quality standards across the manufacturing process is a paramount concern for the Indian pharmaceutical manufacturing market. Despite stringent regulatory requirements, ensuring compliance and adherence to quality norms remains a challenge, necessitating continuous investment in infrastructure, technology, and workforce training.
• Regulatory Compliance Complexity: Navigating the regulatory landscape, both domestically and internationally, presents challenges for Indian pharmaceutical manufacturers. Compliance with diverse regulatory frameworks, including those of different countries and regions, can be time-consuming and resource-intensive, impacting time-to-market for new drugs and hindering global expansion efforts.
• Intense Competition: The Indian pharmaceutical manufacturing market is highly competitive, both domestically and globally. Intense competition from domestic peers as well as multinational pharmaceutical companies requires Indian manufacturers to continually innovate, differentiate their products, and optimize operational efficiency to maintain market share and profitability.
• Price Controls and Government Regulations: Price controls imposed by government authorities to ensure affordability of pharmaceutical products for the masses can impact profit margins for Indian manufacturers. Additionally, frequent changes in government regulations and policies pertaining to pricing, taxation, and manufacturing standards can create uncertainty and volatility in the operating environment, affecting business planning and investment decisions.

Dosage Form Insights

The tablets segment held the dominant position in the India pharmaceutical manufacturing market in 2023, commanding a share of 46%. It is projected to exhibit the fastest growth rate throughout the forecast period. This growth can be attributed to several factors, including the widespread acceptance of tablets among patients and physicians, continuous advancements in pharmaceutical sciences leading to the development of tablets with desired properties, and the ease of manufacturing. Furthermore, the increasing focus on research and development (R&D) initiatives within this segment is expected to further drive the demand for tablets in the years ahead. For instance, in December 2021, VVDN Technologies announced its provision of complete design, development, and manufacturing services for Make In India tablets, catering to both global and domestic markets. This initiative is poised to bolster the global supply of tablets, consequently boosting revenue for the tablets segment.

The injectable segment is forecasted to experience lucrative growth during the forecast period. This growth is fueled by factors such as the growing number of approvals for prefilled syringes and auto-injectors. Additionally, there has been a shift in preference towards larger dosage volumes, leading to an increased demand for 2.25ml needle syringes, which significantly contributes to the revenue of this segment. Injectable insulin has long been considered the cornerstone treatment for diabetes, with prefilled syringes and insulin pens emerging as the leading modes of insulin administration. With the rising prevalence of diabetes cases, the utilization rate of insulin pens is expected to witness a notable increase.

Manufacturing Type Insights

The contract manufacturing segment emerged as the dominant force in the market, commanding a share of 54% in 2023 and is projected to experience the fastest growth rate over the forecast period. In recent times, many manufacturers have shifted their focus towards external service providers for R&D and manufacturing services. This shift is driven by several factors, including the growing demand for customized products, the imperative need for enhanced productivity and efficiency across the value chain, and the continuous pressure from regulatory bodies on drug pricing. These factors have compelled pharmaceutical companies to rely significantly on outsourcing drug development processes. Additionally, pharmaceutical companies are increasingly focusing on cost reduction during formulation development, API manufacturing, analytical and testing services for solid dose manufacturing, and clinical trials management.

On the other hand, the in-house manufacturing segment is anticipated to grow at a substantial rate during the forecast period. This growth is attributed to the ongoing expansion of in-house manufacturing facilities by market players. For instance, in May 2023, Aurigene Pharmaceutical Services, a subsidiary of Dr. Reddy’s Laboratories, announced an investment of USD 40 million for the expansion of its production facility, particularly for therapeutic antibodies, proteins, and viral vectors. Moreover, in February 2023, Gland Pharma announced an investment in Genome Valley, near Hyderabad, aimed at bolstering their existing infrastructure and enabling the production of biologicals, biosimilars, antibodies, and recombinant insulin.

Therapeutic Category Insights

The cardiovascular segment asserted its dominance in the market, capturing a revenue share of 14% in 2023 and is poised to exhibit the fastest compound annual growth rate (CAGR) over the forecast period. This growth is propelled by the escalating investment in research and development aimed at innovating cardiovascular drugs, including the development of generic versions of existing medications, catering to both domestic and international markets. Cardiovascular diseases, encompassing a spectrum of conditions affecting the heart and blood vessels such as hypertension, coronary artery disease, heart failure, and arrhythmias, are notably prevalent in the country, driving the demand for effective therapeutics. Furthermore, the innovative formulation development, coupled with the burgeoning export of formulations, is contributing significantly to the overall market expansion.

On the other hand, the endocrinology segment is projected to witness a lucrative growth rate during the forecast period. This growth can be attributed to factors such as the increasing prevalence of endocrine-related diseases, the growth in the aging population, rising awareness about these conditions, and advancements in pharmaceutical research and development. Moreover, the proliferation of manufacturing facilities in India and the escalating exports from the country are expected to further drive the overall market growth.

India Pharmaceutical Manufacturing Market Key Companies

• Akums Drugs and Pharmaceuticals Ltd.
• Pure & Cure Healthcare
• Alkem Laboratories Ltd.
• BDR Pharmaceuticals Internationals Pvt. Ltd.
• Hetero
• Sun Pharmaceutical Industries Ltd.
• Ajanta Pharma Ltd.
• Synokem Pharmaceuticals Ltd.
• Cipla Inc.
• La Renon Healthcare Pvt. Ltd.
• Eris Lifesciences
• Lupin
• Glenmark Pharmaceuticals Ltd.
• Torrent Pharmaceuticals Ltd.
• Ipca Laboratories Ltd.
• Intas Pharmaceuticals Ltd.
• Micro Labs Ltd.
• MSN Laboratories

Recent Developments

• In September 2023, Cipla Inc. announced the acquisition of Actor Pharma to bolster and diversify its portfolio of over-the-counter (OTC) offerings.
• In August 2023, BDR Pharmaceuticals Internationals Pvt. Ltd. unveiled the launch of Dalbonova injection, designed for the treatment of skin structure infections and acute bacterial skin infections caused by susceptible strains of gram-positive microorganisms.
• In September 2023, Akums Drugs and Pharmaceuticals Limited introduced the Tamsulosin + Tadalafil capsule, a combination therapy approved by the Drug Controller General of India (DCGI) for managing lower urinary tract symptoms and erectile dysfunction in men. The company launched this product with the aim of expanding its presence in the urology segment.
• In February 2023, Sun Pharmaceutical Industries Ltd. obtained FDA approval for its generic version of Lenalidomide Capsules.

India Pharmaceutical Manufacturing Market Segmentation:

By Dosage Form

• Tablets
• Capsules
  • Soft Gelatin Capsule
  • Hard Gelatin Capsule
  • Others
• Injectables
• Others

By Manufacturing Type

• In-house Manufacturing
• Contract Manufacturing

By Therapeutic Category

• Endocrinology
  • Canagliflozin
  • Empagliflozin
  • Semaglutide
  • Tirzepatide
  • Linagliptin
  • Alogliptin
  • Trelagliptin
  • Myo-inositol
• Cardiovascular
  • Treprostinil
  • Azilsartan Medoxomil
  • Azilsartan+Amlodipine
  • Amlodipine+Lisinopril
  • Sparsentan
  • Esaxerenone
• CNS
  • Cariprazine
  • Brexpiprazole
  • Lisdexamfetamine
  • Vortioxetine
  • Mirogabalin Besylate
  • Lasmiditan
  • Siponimod
• Analgesics
  • Ibuprofen+Famotidine
  • Upadacitinib
• Antacid
  • Pantoprazole
• Antibiotic
  • Doxycycline
  • Tedizolid
• Antifungal
  • Posaconazole
• Antiprotozoal
  • Nitazoxanide
• Hematology
  • Lenalidomide
  • Daprodustat
  • Roxadustat
  • Edoxaban
  • Avatrombopag
• Others
  • Linaclotide
  • Apremilast
  • Tegoprazan
  • Suvorexant
  • Vonoprazan
  • Rolapitant
  • Elagolix