The Indian Pharmaceutical Market (IPM) reached a valuation of Rs 2,40,672 crore on a Moving Annual Total (MAT) basis. Monthly sales stood at Rs 21,207 crore, reflecting a 10.6 percent year-on-year increase and adding Rs 2,031 crore in incremental market value.

According to data from the All India Organisation of Chemists and Druggists (AIOCD), the market has transitioned from post-pandemic volatility to a structurally driven growth phase. Looking ahead, the IPM is projected to record value growth of 7.8 percent to 9 percent in 2026.

Growth continues to be led by lifestyle-driven chronic therapies, supported by the rising prevalence of non-communicable diseases and earlier diagnosis. The chronic segment posted a strong 13.4 percent value growth in December 2025, contributing Rs 902 crore in incremental sales. Established brands such as Glycomet GP and Thyronorm retained leadership positions, while new therapies are reshaping prescribing patterns.

A key growth catalyst has been the rapid uptake of next-generation GLP-1 agonists for diabetes and obesity. Eli Lilly’s Mounjaro climbed 11 ranks to enter the top 20 chronic therapies shortly after launch, while Wegovy and Ozempic further strengthened the anti-diabetic segment as a major innovation-led growth engine.

Innovation remained central to market expansion, with 5,564 new product launches contributing Rs 4,180 crore over the past year. New introductions accounted for 3.81 percent of the market in December and grew 20.5 percent year-on-year, led by anti-diabetic, dermatology and cardiac therapies.

Regionally, southern India emerged as the fastest-growing zone, driven largely by double-digit growth in anti-diabetic treatments. The northern zone continued to anchor volumes, supported by steady demand in cardiac and anti-infective segments.

The market is also undergoing a shift in healthcare access, with OTC and OTX products increasingly moving toward retail, e-pharmacy and direct-to-consumer channels. As the industry approaches 2026, the patent expiry of semaglutide in March is expected to accelerate generic launches, reshaping competition in the anti-obesity segment while emphasising the importance of innovation and portfolio agility.