India commands nearly 20 per cent of global generic medicine exports by volume, but sustaining that leadership will demand a decisive pivot from bulk volumes to higher-value products such as biosimilars, speciality drugs, and advanced therapies, according to Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings. The assessment, shared on 24 June, underscores a structural inflection point for the country's $865 billion export economy.

India's Pharma Standing and the Value-Chain Gap

India is already a dominant force in global generics, supplying roughly one-fifth of the world's generic medicines by volume. Yet volume leadership has not translated into proportionate revenue or margin gains. Dr. Sharma argued that the next growth phase hinges on shifting from a quantity-first model to one anchored in innovation and complexity.

'India is a global leader in generic medicines, with around 20 per cent of global exports coming from the country. To move to the next level, it is important to shift from volume-based exports to value-driven exports,' he said.

Where the Opportunities Lie

Sharma identified biosimilars, speciality drugs, cell and gene therapies, and novel drug delivery systems as priority segments for India to pursue. These categories carry significantly higher margins than conventional generics and are growing rapidly in regulated markets such as the US, Europe, and Japan.

He also stressed the need for greater investment in research and development, complex generics, digital manufacturing, testing laboratories, and export infrastructure. Reducing dependence on imported active pharmaceutical ingredients (APIs) was flagged as equally critical, with Sharma advocating development of fermentation-based APIs and advanced intermediates to shore up domestic supply chains.

Policy Levers: PLI, FTAs, and Regulatory Reform

On the policy side, Sharma noted that the government's Production Linked Incentive (PLI) scheme is 'delivering encouraging results on the ground.' He called for complementing it with stronger public-private partnerships, regulatory harmonisation, talent development, and greater venture capital support for the sector.

Trade agreements are also opening new corridors. India has signed deals with the UAE, Australia, and the UK, while negotiations with the European Union are reportedly progressing. 'These initiatives will help diversify export markets, improve competitiveness and strengthen supply-chain reliability,' Sharma said.

Broader Export Resilience and Industrial Clusters

India's overall exports reached approximately $865 billion in FY25, demonstrating resilience despite global headwinds. Sharma argued that reducing logistics costs, ensuring stable and predictable policy frameworks, and expanding manufacturing ecosystems across pharmaceuticals, electronics, semiconductors, renewable energy, and defence would collectively help create globally competitive industrial clusters.

He also underlined that continued focus on innovation, quality standards, intellectual property protection, and ease of doing business would be key to unlocking the next phase of growth for India's pharmaceutical industry. With free trade agreements multiplying and domestic policy support in place, the structural building blocks are arguably stronger than at any previous point — the question is whether execution can match ambition.