The industry has received ₹12,822 crore in foreign direct investment (FDI) over the same period, which indicates robust worldwide confidence in India's pharma competency, the latest government report said.

Key highlights

10% CAGR over five years

• The pharma industry has recorded a compound annual growth rate (CAGR) of 10% over the last five years.

• FY24 recorded ₹4.17 lakh crore in overall turnover, supported by strong demand and a resilient domestic production ecosystem.

FDI inflows continue to be strong

• India permits 100% FDI in greenfield pharma initiatives, facilitating global capital flow.

• FY24 recorded ₹12,822 crore of FDI into the pharma segment.

PLI scheme is fueling manufacturing growth

• The ₹15,000 crore PLI scheme benefits 55 pharma manufacturing projects, particularly in the treatment of cancer and diabetes.

• Another ₹6,940 crore PLI scheme is for major raw materials, including Penicillin G.

Medical devices get a boost too
Another ₹3,420 crore incentive program encourages local manufacturing of MRI machines, heart implants, and other key medical devices.

Sector outlook and socioeconomic impact

• According to India Ratings, the pharma industry experienced 7.8% YoY revenue expansion in April 2025 due to new product introductions.

• The industry is creating jobs, enhancing affordability, and increasing access in both urban and rural India.

India's pharmaceutical sector remains on the growth path, driven by policy support, increased exports, and augmenting domestic capability. With increasing infrastructure and foreign investment, the industry has the potential to make substantial contributions to the nation's economic as well as health objectives.