Can an Indian pharma company become one of the world’s five largest? PM Modi has urged the industry to expand research, innovation and global reach.
Prime Minister Narendra Modi has called for at least one Indian pharmaceutical company to become one of the world’s five largest pharma companies, putting the country’s drug industry at the centre of his Independence Day vision for India’s healthcare sector. ()
Addressing the nation from the Red Fort on August 15, Modi said India should set bigger goals for its pharmaceutical industry and build companies capable of competing with the largest global drugmakers.
The target comes as India already has a major role in global medicine supply. The country ranks among the world’s largest pharmaceutical producers by volume and is a leading supplier of generic medicines and vaccines. Government data says Indian pharmaceutical companies supply around 20% of the world’s generic medicines.
India’s Pharma Industry Has a Global Footprint
India’s pharmaceutical sector is important to both domestic healthcare and international medicine supply. Indian manufacturers produce generic drugs, vaccines, active pharmaceutical ingredients and other medicines that are exported to markets around the world.
The industry ranked third globally by pharmaceutical production volume and 11th by value, according to figures cited following Modi’s address. India’s pharmaceutical exports reached $30.5 billion in 2024-25, while the sector is projected to reach about $130 billion by 2030.
The government’s focus is now shifting from production scale to the size and global reach of Indian companies themselves.
Focus on Affordable Medicines and New Drugs
India’s pharmaceutical strength has traditionally been closely linked to generic medicines, which have helped lower the cost of treatment in many countries.
The government has also been pushing domestic production of more complex medicines and pharmaceutical ingredients. A government report said the Production Linked Incentive scheme for pharmaceuticals is supporting projects involving high-value products, including medicines used to treat cancer and diabetes.
For patients, greater investment in domestic pharmaceutical manufacturing could have implications for the availability and cost of medicines, particularly if companies expand production of complex drugs, biologics and other high-value treatments.
The challenge is to build global companies without losing the sector’s role in supplying affordable medicines.
Research and Innovation Will Be Key
Moving an Indian pharmaceutical company into the global top five would require more than increasing manufacturing capacity. The sector would need to expand research and development, develop new medicines and vaccines, strengthen clinical research and build capabilities in areas such as biologics and complex generics.
Recent industry data also show that India’s pharmaceutical exports are continuing to grow. Pharma exports increased 6.8% year-on-year to $8.1 billion in the first quarter of 2026-27, with drug formulations and biologicals accounting for nearly three-quarters of exports during the period. Vaccine exports rose 35.7% during the quarter.
What the Target Means for Healthcare
Modi’s call is ultimately about moving India higher up the global pharmaceutical value chain. India is already a major source of medicines for the world, but the next stage will depend on whether its companies can develop and commercialize more innovative treatments while maintaining their strength in affordable medicines.
The government’s existing push for pharmaceutical manufacturing, research and domestic production provides part of that foundation. The bigger test will be whether Indian companies can turn that manufacturing base into globally leading healthcare businesses that deliver medicines, vaccines and new treatments at scale.
References:
- Prime Minister Shri Narendra Modi addresses the nation from the ramparts of Red Fort on the occasion of 80th Independence Day – (https://www.pib.gov.in/PressReleasePage.aspx?PRID=2299848)
Source-Medindia