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India's Rising Role in the Global Pharma Supply Chain

India's Rising Role in the Global Pharma Supply Chain

India is fast emerging as a cornerstone of the global pharmaceutical supply chain, with its robust manufacturing capabilities, growing R&D footprint, and strategic government initiatives positioning the country as a critical partner for global healthcare resilience.

Often referred to as the "pharmacy of the world", India is the largest provider of generic medicines globally, accounting for 20% of global supply by volume. It is also a leading vaccine producer, supplying over 60% of the world's vaccines, including those used in the global COVID-19 response. But beyond generics and vaccines, India's pharmaceutical sector is now undergoing a strategic transformation—shifting from a volume-driven exporter to a value-driven global collaborator.

One of the key drivers behind India’s growing role is its expansive manufacturing infrastructure. The country is home to more than 3,000 pharmaceutical companies and over 10,500 manufacturing units. It boasts the highest number of US FDA-compliant pharma plants outside the United States, enabling Indian companies to serve highly regulated markets such as the US and EU with increasing ease and confidence.

In recent years, global pharmaceutical companies have also turned to India for contract development and manufacturing organisation (CDMO) services. The country’s large talent pool of chemists, engineers and scientists, coupled with competitive costs, makes India a preferred outsourcing destination for everything from early-stage drug development to commercial-scale production.

The Indian government has launched several initiatives to strengthen this position further. The Production Linked Incentive (PLI) scheme for pharmaceuticals and bulk drugs aims to reduce import dependency on critical raw materials while incentivising domestic manufacturing of high-value products. Meanwhile, schemes like ‘Make in India’ and ‘Atmanirbhar Bharat’ are promoting self-reliance in the Active Pharmaceutical Ingredients (API) sector, an area previously dominated by Chinese imports.

India’s rising stature has also been aided by digital and regulatory maturity. Increasingly, Indian pharma companies are adopting smart manufacturing practices, including AI, IoT, and data analytics, to drive efficiencies and meet global compliance standards. This has been crucial in building trust with international regulatory bodies and global pharma partners.

With the world grappling with drug shortages, supply chain disruptions, and cost pressures, India's proven ability to scale production quickly while maintaining quality makes it a reliable partner in global health security. As demand for accessible and affordable healthcare grows, India’s pharmaceutical sector is poised not just to support but to lead.

In this era of global collaboration and health diplomacy, India is no longer just the pharmacy of the world—it is fast becoming its supply chain backbone.

More news about: global pharma | Published by Darshana | July - 19 - 2025 | 123

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