The Foreign Investment Outlook of India’s Pharmaceuticals Industry

India’s pharmaceutical industry, ranked third globally by volume and 14th by value, is a powerhouse with around 3,000 drug companies and 10,500 manufacturing units. With a market worth $50 billion, it’s projected to reach $130 billion by 2030, growing at a 10.7% CAGR. The sector benefits from 100% FDI in greenfield projects and up to 74% in brownfield projects via the automatic route. India is a major global player, supplying 60% of global vaccines and 20% of generic drugs. The government supports the industry with Production Linked Incentive (PLI) schemes to boost domestic production and reduce import reliance on APIs and medical devices. The industry is further bolstered by robust exports, a growing OTC market, and significant investment in medical infrastructure and research.