India’s pharma exports close to $30 billion, new report says innovation will drive next growth wave

India’s pharmaceutical exports are close to crossing the $30-billion mark, signalling a major shift in the country’s drug industry as it moves from high-volume manufacturing to an innovation-first approach. A new EY-Parthenon-OPPI report says this growth reflects a sector that is no longer just expanding in size but preparing for a deeper scientific transformation.

For decades, India has been known as the “pharmacy of the world”, a title earned through its ability to supply affordable and reliable medicines across the globe. The country produces around 20% of all generic medicines used worldwide and nearly 60% of global vaccines, making it a backbone of international public health programmes. The report says this strong foundation, combined with new advancements in Contract Research and Development Organisations (CRDMOs) and Global Capability Centres (GCCs), is shaping the next era of Indian pharma.

According to the study, India’s generics strength, vaccine leadership, and fast-growing CRDMO/CDMO ecosystem will play a crucial role in the country’s long-term economic ambition of becoming a $30-35 trillion economy by 2047. The pharmaceutical sector is already among the world’s top performers, ranking third in production volume and fourteenth in value.

Exports have risen steadily over the past decade, from $15.07 billion in 2013-14 to $27.85 billion in FY 2023-24, and are expected to exceed $30 billion very soon. This growth supports both economic progress and global health, with Indian medicines reaching over 200 countries.

Industry leaders interviewed for the report noted that India must now shift from a cost-driven manufacturing model to one focused on innovation, value creation, and long-term global leadership. They emphasised the need for faster regulatory processes, higher investment in research and next-generation therapies, and stronger talent development to support high-value scientific work. Suresh Subramanian, National Lifesciences Leader at EY Parthenon India, said that improving regulatory ease, boosting R&D funding, and developing a skilled workforce are essential to sustaining India’s global competitiveness.

The report highlights the rapid rise of CRDMOs and CDMOs as a major driver of the next growth wave. The global CRDMO market is projected to reach $303 billion by 2028 , as global companies increasingly outsource research and manufacturing. Indian CRDMOs, equipped with advanced manufacturing, analytics, and digital capabilities, are positioning themselves as important partners in global drug discovery and innovation.

The expansion of Global Capability Centres is further strengthening India’s role in global pharma. Nearly half of the world’s leading life sciences companies now operate GCCs in India, using the country’s talent and digital expertise to support large-scale research, data analytics, and AI-led drug development. These centres have evolved from low-cost operational units into strategic hubs driving innovation for multinational drugmakers.

The report concludes that as India builds a stronger innovation pipeline through CRDMOs, GCCs, and advanced digital technologies, its identity as the pharmacy of the world is set to grow into a more powerful role, one where India becomes a global centre for research-driven, high-value pharmaceutical innovation.