Indian pharmaceutical industry expected to reach $55 billion by 2030: Report

The Indian pharmaceutical industry is expected to witness significant growth by 2030, driven by new regulatory measures and technological advancements, according to a report from Pharmarack Technologies, a digital supply chain solutions and market intelligence platform.

Valued at approximately Rs 2.42 lakh crore ($29 billion) in 2023, the sector is projected to reach Rs 4.6 lakh crore ($55 billion) by 2030, reflecting a compound annual growth rate (CAGR) of 9.6%, said the report.

Supported by the Indian Pharmaceutical Association (IPA), the report highlighted key segments contributing to this growth, including patented drugs, branded generics, and trade generics. Patented drugs, which currently hold a smaller market share, are expected to grow to Rs 15,500 crore by 2030. Branded generics, making up 87% of the market, were valued at Rs 2.10 lakh crore in 2023 and are projected to reach Rs 3.71 lakh crore by 2030, said the report. 

Trade generics, with a 10% market share, are forecast to expand from Rs 24,000 crore to Rs 68,000 crore by 2030. The generic generics segment, aimed at underserved populations through initiatives like Jan Aushadhi stores, is expected to increase from 0.5% to 1.1% of the market by 2030.

The retail pharmacy landscape in India remains fragmented, with standalone pharmacies holding 54% of the market, institutional supplies at 31%, organised retail chains at 11.5%, and online pharmacies at 2.5%. Jan Aushadhi stores, currently under 1% of the market, are expected to improve access to affordable medicines.

The distribution sector is also evolving, with a rise in organised stockists enhancing drug delivery efficiency, according to the report. Regulatory changes are set to impact the industry, it further said.

The Revised Schedule M aims to improve quality standards through Good Manufacturing Practices (GMP), while the Uniform Code of Pharmaceutical Marketing Practices (UCPMP) is designed to promote ethical marketing. Good Distribution Practices (GDP) will focus on enhancing last-mile connectivity to ensure quality medicine delivery.

Technological innovations are also shaping the sector. Technologies such as IoT sensors, RFID, and SaaS platforms are expected to enhance supply chain efficiencies and quality control. Track and trace systems, including QR codes and barcodes, are being implemented to address counterfeit drugs. Additionally, virtual and augmented reality tools are being used for training quality control professionals.

“As the pharmaceutical sector evolves, empowering pharmacists, optimising distribution networks, and leveraging technology are crucial for creating a transparent supply chain. Our goal is to ensure that affordable medicines are accessible throughout the country,” Dhruv Gulati, CEO of Pharmarack Technologies said.