India's Pharma Sector Must Shift Focus to Innovation and Quality
Experts say India's pharmaceutical sector needs to move away from cost competitiveness and focus on innovation, research and development, and global quality to achieve its target of a USD 130 billion market by 2030
India's pharmaceutical sector is at a crossroads, with experts saying it needs to shift its focus from cost competitiveness to innovation, research and development, and global quality. This comes as the country targets a pharmaceutical market of USD 130 billion by 2030.
## Current State of the Sector The sector has already established itself as a major player in the global market, with India being a significant manufacturer of pharmaceuticals and vaccines. However, experts say that to achieve the target of a USD 130 billion market, the sector needs to move up the value chain. Sarvesh Singh, CEO of Lifesciences and Pharma, Government of Telangana, said that the state is seeking to emerge as the life sciences innovation capital of India, with a focus on biologics, biosimilars, cell and gene therapies, and other areas where biology, chemistry, and technology converge.
## Investment and Growth To achieve this goal, the sector needs to attract significant investments in research and development, digital technologies, and contract research and development manufacturing. The Telangana government has announced its Next-Gen Life Sciences Policy 2026-2030, which aims to attract USD 25 billion in investments and create over five lakh jobs over the next five years. M Roja Rani, Executive Director of the Bulk Drug Manufacturers Association of India, said that the sector needs to reduce its dependence on imported key starting materials and intermediates and build greater depth across the domestic value chain.
## Opportunities and Challenges The sector has several opportunities for growth, including the contract research and development manufacturing (CRDMO) industry, which is projected to reach around USD 14 billion by 2028. However, realizing this potential will depend on how effectively the industry advances quality, technology, capability, and global collaboration. Pushpa Vijayaraghavan, Director of Healthcare and Lifesciences Advisory at Sathguru Management Consultants, said that India needs to progress simultaneously across generics, APIs, biologics, biosimilars, and innovation.
## Way Forward The way forward for the sector is clear - it needs to focus on innovation, quality, and technology to achieve its targets. Chakravarthi AVPS, Chairman of the Federation of Pharma Entrepreneurs, Telangana and Andhra Pradesh, said that compliance is now the baseline for pharmaceutical companies, and innovation and technology are becoming the key differentiators. The sector needs to invest in research and development, digital technologies, and contract research and development manufacturing to move up the value chain and achieve its targets. The CPHI & PMEC India 2026 event, scheduled to be held in November, will provide a platform for industry stakeholders to collaborate and convert these opportunities into long-term growth.
