Shaping the future of India's pharmaceutical operations

The McKinsey & Company report analyses India's pharma landscape, highlighting disruptions, opportunities, and strategic priorities for companies aiming for accelerated and sustained global leadership

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Over the past decade and more, India's pharmaceutical sector has become the world's largest supplier of generic medicines, with exports growing faster than the global average. The industry is at a tipping point, however: the Indian and global landscapes are shifting. While emerging trends could disrupt the current environment, they could also lead to the next horizon of opportunities for the industry. Against this backdrop, what will it take for the industry to achieve its full potential and unlock the next S-curve of performance as a global leader? To answer the question, this report looks at Indian pharma's journey so far, highlights the potential disruptions and opportunities likely ahead, and proposes strategic, thematic priorities for pharma companies as they pursue accelerated and sustained global leadership.

The evolution of India's pharma operations: Triumphs and trials

With a thrust on strong operations over the past decade, Indian pharma production has outpaced global growth by over two times, and Indian exports (at 9 per cent) have outpaced global growth (5 per cent).¹

Five factors have contributed to this performance:

1. Increased investments in infrastructure: India now has a manufacturing infrastructure of 752 Food and Drug Administration (FDA)-approved sites, 2,050 World Health Organization (WHO) Good Manufacturing Practice (GMP)-certified plants, and 286 European Directorate for the Quality of Medicines and Healthcare (EDQM)-approved plants as of 2024 (2).

2. Enhancing quality to meet global standards: Global compliance outcomes have improved over the past decade, and the industry achieved a step change in its quality excellence trajectory.