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Summary:India’s pharmaceutical industry has witnessed remarkable growth over the past 12 years, driven by government reforms, healthcare initiatives, and manufacturing incentives. Programmes such as the Pradhan Mantri Bhartiya Janaushadhi Pariyojana have expanded access to affordable medicines through over 19,200 Jan Aushadhi Kendras, helping citizens save more than ₹40,000 crore in healthcare expenses. At the same time, Production Linked Incentive (PLI) schemes for pharmaceuticals and medical devices have attracted investments exceeding ₹43,800 crore, generated sales of over ₹3.72 lakh crore, and created more than 1.2 lakh jobs. Supported by infrastructure projects, biotechnology initiatives, and domestic manufacturing programmes, the sector has strengthened India’s position as the “Pharmacy of the World” while advancing the vision of affordable healthcare and Atmanirbhar Bharat. Over the last twelve years, India’s pharmaceutical industry has experienced substantial growth, becoming a major contributor to affordable healthcare, indigenous manufacturing, and economic development. Backed by a range of government reforms and flagship programmes, the sector has improved the availability of low-cost medicines, expanded pharmaceutical and medical device production, attracted significant investments, and reinforced India’s reputation as the “Pharmacy of the World.” According to the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilisers, government initiatives have focused on enhancing healthcare access while simultaneously creating a globally competitive pharmaceutical ecosystem aligned with the vision of Atmanirbhar Bharat. A key milestone during this period has been the large-scale expansion of the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), which has played a vital role in increasing the availability of affordable generic medicines nationwide. The number of operational Jan Aushadhi Kendras has grown from approximately 84 outlets in 2014 to more than 19,200 by 2026, enabling millions of citizens to purchase quality medicines at considerably lower prices. The programme has become one of the government’s most impactful healthcare interventions, helping reduce out-of-pocket healthcare costs while ensuring access to essential medicines. Growth has been particularly significant in remote and underserved regions. In the North East alone, Jan Aushadhi Kendras increased from a single outlet in 2014 to 417 centres by 2026, highlighting efforts to improve healthcare availability in difficult-to-reach areas. Among states, Uttar Pradesh has the highest number of centres with 4,042 outlets, followed by Kerala (1,791), Karnataka (1,665), Tamil Nadu (1,591), Bihar (1,183), West Bengal (937), Gujarat (918), Odisha (852), Maharashtra (741), and Rajasthan (718). Several regions have recorded substantial expansion over the decade. New Delhi’s network increased from four centres in 2014 to 645 in 2026. Jammu and Kashmir grew from six to 358 centres, Punjab from 20 to 556, Himachal Pradesh from eight to 76, and Tripura from one to 33. The Department of Pharmaceuticals noted that the availability of affordable generic medicines through PMBJP has enabled citizens to save more than ₹40,000 crore in healthcare expenses compared to purchasing branded alternatives. In parallel with improving healthcare access, the government has strengthened domestic pharmaceutical manufacturing through targeted incentive schemes. Among these, the Production Linked Incentive (PLI) Scheme for Pharmaceuticals, launched in 2020-21, has emerged as a major catalyst for industrial growth and investment. Official figures indicate that the scheme has attracted cumulative investments of ₹42,694.89 crore while generating sales worth ₹3,43,215.27 crore. It has also contributed to employment generation for over 1.13 lakh people. The programme promotes the manufacturing of high-value pharmaceutical products, including biopharmaceuticals and complex generic medicines, helping India reduce import dependence while expanding capabilities in advanced drug production. According to the Department, the initiative has strengthened the country’s pharmaceutical supply chain and further cemented India’s role as a leading global supplier of medicines. The medical devices industry has also benefited from a dedicated PLI programme designed to encourage domestic manufacturing. Under the PLI Scheme for Medical Devices, investments amounting to ₹1,136.23 crore have been realised, while cumulative sales have reached ₹29,402.93 crore. The scheme has generated employment for 6,822 individuals and supported local manufacturing of critical medical technologies and equipment. The initiative is expected to lessen dependence on imports and establish India as a growing manufacturing destination for medical devices. To enhance pharmaceutical supply chain resilience, the government has also initiated infrastructure projects through the Bulk Drug Parks Scheme. Three bulk drug parks are currently being developed in Andhra Pradesh, Gujarat, and Himachal Pradesh. These parks are intended to offer shared world-class infrastructure, improve production efficiency, and lower manufacturing costs. The initiative is aimed at boosting competitiveness in active pharmaceutical ingredient (API) manufacturing while reducing dependence on imported raw materials. Likewise, under the Scheme for Promotion of Medical Device Parks introduced in July 2020, dedicated parks are being established in Tamil Nadu, Uttar Pradesh, and Madhya Pradesh. The objective is to strengthen the medical devices ecosystem through common infrastructure facilities, cost efficiencies, and enhanced manufacturing capabilities, supporting India’s self-reliance goals in healthcare technology. Policy support and stakeholder engagement have also contributed significantly to sectoral development. Through the Pharmaceutical and Medical Device Promotion and Development Scheme (PMPDS), the government has encouraged collaboration among industry participants, researchers, and policymakers. Under this initiative, 47 stakeholder consultations and 12 sector-specific studies have been conducted, helping shape policy, foster innovation, and support knowledge-driven growth in the pharmaceutical and medical device sectors. To accelerate progress in biotechnology and advanced medicines, the Union Budget 2025-26 announced the launch of Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation). With an allocation of ₹10,000 crore over five years, the programme aims to strengthen India’s biopharmaceutical industry by encouraging research, innovation, and domestic production of biologics and biosimilars. The Department stated that the initiative will support the development of a self-sustaining ecosystem for advanced biological medicines while improving access to affordable treatment options. The government’s broader pharmaceutical strategy has focused on maintaining a balance between affordability, innovation, and industrial expansion. By combining healthcare programmes such as Jan Aushadhi with manufacturing incentives, infrastructure development initiatives, and biotechnology investments, policymakers aim to create a globally competitive pharmaceutical sector while ensuring that healthcare remains accessible. The industry’s progress is particularly important given India’s central role in global healthcare supply chains. Widely recognised as the “Pharmacy of the World,” India remains one of the largest producers of generic medicines and a major supplier of vaccines and pharmaceutical products worldwide. The Department highlighted that the achievements of the past twelve years demonstrate the sector’s increasing contribution to economic growth, job creation, and healthcare accessibility. As India works towards the goal of becoming a developed nation by 2047, the pharmaceutical industry is expected to remain a key driver of innovation, manufacturing excellence, and affordable healthcare. With more than 19,200 Jan Aushadhi Kendras, cumulative investments exceeding ₹43,800 crore under pharmaceutical and medical device PLI programmes, sales surpassing ₹3.72 lakh crore, and employment generation of over 1.2 lakh jobs, the transformation of India’s pharmaceutical sector stands out as one of the country’s most significant healthcare and industrial success stories of the last decade.

Tag: Healthcare

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