Synopsis
The Indian pharmaceuticals market is projected to grow by 8-9% year-on-year in FY26, as reported by India Ratings and Research. Growth for FY25 is estimated at 7.5-8%. The sector has shown resilience with notable increases in cardiac therapies and overall production, maintaining its position as a leading global supplier of generic medicines.Key Takeaways
- Projected growth of 8-9% for FY26.
- FY25 growth forecast of 7.5-8%.
- Cardiac therapies led with a 10.8% MAT increase.
- Overall sector growth at an average of 7.3%% YTD in FY25.
- India is a leading supplier of generic medicines.
New Delhi, March 10 (NationPress) The Indian pharmaceuticals market is projected to advance by 8-9 percent year-on-year in FY26, as per a report published on Monday.
The analysis provided by India Ratings and Research (Ind-Ra) indicates that the sector’s growth for FY25 will be in the range of 7.5-8.0 percent year-on-year.
This marks an increase from 6.5 percent year-on-year in FY24, compared to 9.9 percent YoY growth in FY23, stated Krishnanath Munde, associate director at India Ratings and Research.
In February, the pharma sector reported a revenue increase of 7.5 percent year on year, driven by price growth of 5.2 percent YoY and new product launches at 2.4 percent YoY. However, volume growth remained subdued at a negative 0.2 percent YoY, according to the report.
The sector has recorded an average growth of 7.3 percent year-to-date (YTD) in FY25, influenced by price increases of 5.5 percent, new launches at 2.7 percent, and volume growth.
Moreover, the moving annual total (MAT) -- the 12-month rolling sales of all pharmaceutical products -- experienced an 8.1 percent increase in February. Cardiac therapies significantly outperformed the overall market with a 10.8 percent growth in MAT, also achieving a 13.7 percent rise in monthly market share. This was followed by growth in gastroenterology, neurology/Central Nervous System, and dermatology.
Conversely, therapies related to anti-infectives, respiratory issues, and gynecology showed weak growth in February, as noted in the report.
Additionally, another recent study indicates that the pharmaceutical sector in India is experiencing rapid production growth. The Indian pharma sector has achieved an 8 percent CAGR and witnessed a 9 percent rise in export rates in 2024, according to a report by McKinsey & Company.
By enhancing its capabilities in APIs and biotechnology, the sector has grown at 8 percent CAGR, which is double the global average. India has also emerged as the world’s largest supplier of generic medicines, boasting a 9 percent growth rate in pharma exports, nearly double the global average, as stated in the report.
