Indian pharma’s defining year: Navigating disruption and preparing for a new global order

This article is authored by Sheetal Arora, promoter and CEO, Mankind Pharma.

The year 2025 has been one of the most consequential periods for India’s pharmaceutical sector. What began under the shadow of geopolitical uncertainty ultimately became a year that clarified the industry’s true strengths and revealed how India must prepare for a very different global order. Beyond the headlines of tariffs, IPOs and regulatory overhauls, this was a year in which Indian pharma demonstrated resilience, deepened its scientific ambition and began rewriting its role in the world’s healthcare architecture.

Pharma (Shutterstock)(HT_PRINT)

India’s pharmaceutical market now stands at $55 billion, expanding at over 10% annually, with a clear trajectory toward $100 billion+ by 2030. Export performance remained robust, surpassing $30 billion and reaffirming India’s position as the world’s largest supplier of generic medicines and a cornerstone of global vaccine security. Yet numbers only tell part of the story. The deeper narrative of 2025 was one of repositioning, strategically, scientifically and structurally.

One of the most defining signals this year emerged from the US. Although Indian generics were initially exempt from tariff considerations, the subsequent proposal of a 100% tariff on imported patented and branded drugs underscored a critical shift: The world’s largest pharma market is reassessing its dependence on international supply chains.

For India, this was not an immediate business disruption. It was a strategic alert.

The message is clear. Over-dependence on any single geography, including the US, introduces concentration risk regardless of current exemptions. This year, several Indian companies accelerated their diversification strategy, expanding commercial presence across Europe, Latin America, Africa and Southeast Asia, while selectively exploring manufacturing footprints in the US to safeguard long-term continuity.

The tariff debate did not weaken India’s global position. Instead, it strengthened the sector’s resolve to diversify, innovate and build structural resilience.

Domestically, the sector experienced a period of transition. Goods and Services Tax (GST) restructuring, while ultimately improving affordability, led to short-term compliance adjustments, supply chain normalisation and inventory correction in Q2. By the end of the year, markets stabilised and chronic therapies, notably diabetes, cardiac and gastrointestinal, continued to anchor demand.

Investor sentiment strengthened as 2025 emerged as a significant year for pharmaceutical IPOs. Companies operating in CRDMO, specialty pharma and innovation-led models saw strong traction, signalling a shift in capital markets towards rewarding scientific capability and differentiated business models.

One of the most significant therapeutic shifts this year has been the surge in GLP-1 drugs, driven by the rapid rise in lifestyle diseases. The Indian GLP-1 market is expected to cross ₹2,000 crore by FY26, supported by the launch of Mounjaro and Wegovy — with Mounjaro already outpacing Wegovy in monthly sales. As key patents begin to expire from 2026 onward, Indian companies will have the opportunity to launch affordable alternatives, positioning India as a major player in one of the world’s fastest-growing therapy segments.

The year also reinforced a long-standing strength of Indian pharma: its ability to scale through strategic consolidation. Over the past decade, Indian drugmakers have pursued selective, high-impact acquisitions to build global scale, therapeutic depth and biosimilar capabilities.

Transactions such as Sun Pharma–Ranbaxy, Biocon’s acquisition of Viatris’ biosimilars business, Torrent Pharma’s acquisition of JB Chemicals, Cipla’s acquisition of InvaGen and Exelan in the US, and Mankind Pharma’s acquisition of BSV reflect a clear strategic pattern. Consolidation is increasingly being used not just to add volume, but to strengthen portfolios, expand global market access and accelerate capability building in complex and specialty therapies.

This consolidation momentum is now being reinforced by regulation. Running parallel to industry deal-making is the initiation of India’s most significant regulatory reform in over two decades. The upgraded Schedule M, now in the process of being implemented, aligns India’s manufacturing standards with WHO-GMP and sets a higher quality benchmark for the sector.

While the transition will raise compliance costs, it is also expected to drive consolidation among smaller manufacturers, ultimately strengthening India’s position as a trusted, world-class pharmaceutical manufacturing base. Together, consolidation and tighter quality norms are reshaping the competitive landscape into one defined not by scale alone, but by capability, credibility and long-term global competitiveness.

If there is one theme that captures the spirit of 2025, it is India’s rising innovation momentum. Companies have doubled investments in the next wave of biosimilars targeting global markets, including Abatacept, Daratumumab, Pembrolizumab, Ustekinumab and Denosumab. Breakthroughs such as India’s first indigenous CAR-T therapy, Wockhardt’s novel NCE Zidebactam and Glenmark’s out-licencing of ISB-2001 reflect a maturing ecosystem capable of producing high-value assets for global markets.

At the same time, Artificial Intelligence (AI) and automation moved from experimentation to essential infrastructure. Digital tools are now embedded across R&D, quality assessment, manufacturing, clinical analytics and regulatory operations. The rapid expansion of Global Capability Centres (GCCs) by multinational innovators has anchored India more deeply within global scientific and regulatory workflows.

This convergence of biosimilars, deep tech and advanced manufacturing marks the beginning of India’s next scientific leap.

As India prepares for 2026, the sector’s priorities are clear. Companies will need to strategically diversify beyond the US while also strengthening on-ground presence to maintain long-term access. Biosimilars represent a significant global opportunity as major biologic patents expire, making accelerated development essential. The enhanced GMP standards under Schedule M will drive compliance-led consolidation, with quality emerging as a defining competitive advantage.

Strengthening anti-counterfeit measures, through QR-based traceability and digital authentication, will be critical to safeguarding patient trust. As global supply chains reset, deeper partnerships with China, Europe and the US will unlock new scientific and commercial pathways. Underpinning all of this will be the sector’s increasing reliance on AI, automation and advanced analytics, which will shape competitiveness, productivity and innovation velocity.

2025 was not a year of disruption, it was a year of direction. It signaled that Indian pharma is stepping into a new league defined not by volume, but by value, science and global relevance. As the world re-organises its health supply chains, India has a once-in-a-generation opportunity to lead this transformation with confidence, capability and conviction.

This article is authored by Sheetal Arora, promoter and CEO, Mankind Pharma.