Economic Survey Flags Shift in India’s Pharma and Medical Devices Sector:
The Economic Survey 2025–26 has highlighted a structural transformation underway in India’s pharmaceutical and medical devices industries, with a clear shift from volume-led growth to value-driven expansion. The Survey underscores increasing emphasis on innovation, complex products, and advanced manufacturing as India seeks to move up the global healthcare value chain.
Pharma Industry Moving Towards High-Value Products
According to the Economic Survey 2025-26, India’s pharmaceutical industry is transitioning from a focus on mass generics to complex generics, biosimilars, and innovation-led products. India currently ranks 11th globally in pharmaceutical exports by value, with a 3 per cent global share. The country remains the world’s third-largest pharmaceutical producer by volume, supplying nearly 20 per cent of global generics demand, with exports to 191 countries in FY25. Over half of these exports are directed to highly regulated markets such as the United States and Europe.
Rapid Rise of the Medical Devices Sector
The Survey notes that India’s medical devices sector is emerging as globally competitive, with exports reaching 187 countries in FY25. Export value rose sharply from USD 2.5 billion in FY21 to USD 4.1 billion in FY25. Domestic manufacturing now includes high-end equipment such as MRI and CT scanners, linear accelerators, cardiac stents, and ventilators. This marks a decisive shift towards sophisticated imaging and life-support technologies, signalling India’s entry into high-tech medical manufacturing.
Export Growth and Vaccine Leadership
Beyond generics, India continues to play a critical global role in vaccine supply. The country provides a majority of the world’s diphtheria, tetanus and pertussis (DPT), Bacillus Calmette–Guérin (BCG), and measles vaccines. In FY25, the pharmaceutical sector’s annual turnover stood at ?4.72 lakh crore, with exports growing at a compound annual growth rate of 7 per cent between FY15 and FY25.
Important Facts for Exams
- India is the world’s third-largest pharmaceutical producer by volume.
- Pharma exports reach over 190 countries, including regulated markets.
- Medical devices exports rose from USD 2.5 billion in FY21 to USD 4.1 billion in FY25.
- India is a leading global supplier of low-cost vaccines.
Scope for Expansion Through Advanced Manufacturing
The Survey points to significant untapped potential in the medical devices sector. It stresses that scaling up will require reducing import dependence by adopting advanced manufacturing technologies such as artificial intelligence and 3D printing. Streamlining global certification and regulatory processes has also been identified as critical to strengthening international market access and sustaining long-term export growth.