India’s Role as the Pharmacy of the World: Opportunities and Challenges

Suncare Group
May 20
3 min read

India’s pharmaceutical industry stands tall as a global powerhouse, often referred to as the "Pharmacy of the World." This reputation is built on the country’s dominance in the manufacturing of generic drugs, cost-effective formulations, and a robust export network that reaches over 200 countries. With a strong foundation of skilled professionals, cutting-edge infrastructure, and government-backed regulatory standards, India has become an indispensable part of the global healthcare supply chain.

India’s Dominance in Generic Drug Manufacturing

India produces over 20% of the world’s generic medicines by volume and is home to the largest number of USFDA-approved plants outside the USA. The country’s pharma ecosystem is deeply rooted in affordable innovation, allowing it to cater to diverse geographies including the United States, Africa, Europe, and Southeast Asia.

Key statistics:

India is the world’s 3rd largest producer of pharmaceuticals by volume.
Over 60,000 generic brands across 60 therapeutic categories are manufactured.
Supplies over 50% of the global demand for vaccines.
40% of generic drugs used in the United States come from India.

Growth in Pharmaceutical Exports

India’s pharmaceutical exports crossed $25 billion in FY2024, showcasing steady year-on-year growth. Major export destinations include the US, UK, South Africa, and Russia. This surge has been fueled by:

Competitive pricing
Skilled manpower
WHO-GMP and USFDA compliant facilities
Government initiatives like Pharma Vision 2020 and PLI (Production Linked Incentive) schemes

The COVID-19 pandemic further highlighted India’s role, as the country quickly ramped up the production of essential drugs like Hydroxychloroquine and Paracetamol, along with distributing vaccines through its Vaccine Maitri initiative.

Opportunities for Indian Pharma

Contract Manufacturing and CDMO Services: Global pharma companies are increasingly outsourcing to India for cost and capacity advantages.
Biosimilars and Biologics: With patents expiring globally, Indian firms can expand into the complex biologics space.
Digital Health Integration: Pharma companies leveraging AI, big data, and telemedicine can improve supply chains and treatment outcomes.
Expanding Access in Emerging Markets: Africa, Latin America, and Southeast Asia present vast untapped potential.

Challenges Facing the Sector

Despite these strengths, challenges remain:

Regulatory Hurdles: Diverse international standards require constant adaptation and high compliance costs.
Price Controls: Domestic regulations often cap profit margins, impacting R&D investment.
API Dependence: Heavy reliance on China for Active Pharmaceutical Ingredients (APIs) poses a strategic vulnerability.
Skilling and R&D Investment: There's a growing need to enhance innovation, clinical trials, and workforce upskilling.

Conclusion: India's Pharma Future is Global

India’s pharmaceutical sector is evolving beyond generic drugs into a hub for innovation, biologics, and global supply chain leadership. As healthcare demands rise globally, India is well-positioned to provide affordable, high-quality medicines at scale.

Looking for a Reliable Pharmaceutical Manufacturer?

If you are seeking a trusted and experienced pharmaceutical partner, consider speaking with us. At Suncare Formulations Pvt Ltd, we bring over 30 years of experience in contract manufacturing and development. Our product portfolio spans 60 therapies and over 400 formulations including tablets, capsules, syrups, and topicals.

About Us:

Suncare Formulations Pvt Ltd is a WHO-GMP-certified company operating from state-of-the-art twin manufacturing plants in Dehradun. We've proudly manufactured for renowned companies like Lupin, Cadila, Micro Labs, and continue to serve both private and government sectors including DRDO and Jan Aushadhi projects.

Visit us at: www.suncareformulations.com

Our Director, Mr. Sanjay Sikaria, plays a pivotal role in the Indian pharma ecosystem as: