India’s pharmaceutical sector records transformative growth over 12 years, strengthening affordable healthcare and self-reliance

India’s pharmaceutical sector has undergone a significant transformation over the past twelve years, emerging as a key pillar of affordable healthcare, domestic manufacturing and economic growth. Driven by a series of policy reforms and flagship initiatives, the sector has expanded access to low-cost medicines, boosted pharmaceutical and medical device manufacturing, attracted substantial investments and strengthened India’s position as the “Pharmacy of the World.”

According to the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilisers, the government’s efforts have focused on simultaneously improving healthcare accessibility and building a globally competitive pharmaceutical ecosystem capable of supporting the vision of Atmanirbhar Bharat.

One of the most visible achievements during this period has been the rapid expansion of the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), which has significantly improved access to affordable generic medicines across the country.

From just around 84 functional Jan Aushadhi Kendras in 2014, the network has expanded to more than 19,200 centres in 2026, making quality medicines available at substantially lower prices to millions of Indians. The scheme has emerged as one of the government’s most impactful healthcare initiatives, helping citizens reduce their out-of-pocket medical expenses while ensuring access to essential medicines.

The expansion has been particularly notable in remote and underserved regions. In the North Eastern states, the number of Jan Aushadhi Kendras has increased from only one centre in 2014 to 417 centres in 2026, reflecting the government’s emphasis on improving healthcare access in geographically challenging areas.

Among the states, Uttar Pradesh leads the country with 4,042 Jan Aushadhi Kendras, followed by Kerala with 1,791 centres, Karnataka with 1,665, Tamil Nadu with 1,591, Bihar with 1,183, West Bengal with 937, Gujarat with 918, Odisha with 852, Maharashtra with 741 and Rajasthan with 718 centres.

Several regions have witnessed remarkable growth over the past decade. In New Delhi, the number of Jan Aushadhi Kendras has increased from four in 2014 to 645 in 2026. Jammu and Kashmir has recorded growth from six centres to 358, Punjab from 20 to 556, Himachal Pradesh from eight to 76 and Tripura from one to 33 centres.

The Department of Pharmaceuticals said that by providing quality generic medicines at significantly lower prices than branded alternatives, the PMBJP scheme has enabled citizens to save more than ₹40,000 crore on healthcare expenses.

Alongside expanding healthcare access, the government has focused on strengthening domestic pharmaceutical manufacturing through targeted incentive programmes. The Production Linked Incentive (PLI) Scheme for Pharmaceuticals, launched in 2020-21, has emerged as a major driver of investment and industrial growth.

According to official data, the scheme has attracted cumulative investments of ₹42,694.89 crore and generated cumulative sales worth ₹3,43,215.27 crore. The initiative has also created employment opportunities for more than 1.13 lakh people.

The scheme incentivises the production of high-value pharmaceutical products, including biopharmaceuticals and complex generic medicines, helping India reduce dependence on imports while enhancing its capabilities in advanced drug manufacturing.

The Department said the programme has strengthened India’s pharmaceutical value chain and reinforced its status as a leading global supplier of medicines.

The medical devices sector has also witnessed significant growth under a dedicated PLI programme aimed at promoting domestic manufacturing.

The Production Linked Incentive (PLI) Scheme for Medical Devices has attracted investments worth ₹1,136.23 crore and generated cumulative sales of ₹29,402.93 crore. The programme has created employment for 6,822 people while encouraging the domestic production of critical medical equipment and technologies.

The initiative is expected to reduce import dependence in the healthcare technology sector and position India as an emerging manufacturing hub for medical devices.

To further strengthen the pharmaceutical supply chain, the government has launched dedicated infrastructure projects under the Bulk Drug Parks Scheme. Three bulk drug parks are currently being established in Andhra Pradesh, Gujarat and Himachal Pradesh.

The parks are designed to provide world-class common infrastructure facilities, improve manufacturing efficiencies and reduce production costs for pharmaceutical companies. The initiative aims to enhance India’s competitiveness in active pharmaceutical ingredients (APIs) and reduce reliance on imports of critical raw materials.

Similarly, under the Scheme for Promotion of Medical Device Parks launched in July 2020, dedicated medical device parks are being developed in Tamil Nadu, Uttar Pradesh and Madhya Pradesh.

The scheme seeks to strengthen the medical devices ecosystem through shared infrastructure, lower manufacturing costs and increased domestic production capacity, thereby supporting the country’s self-reliance goals in healthcare technology.

Policy support and industry engagement have also played an important role in the sector’s development. Under the Pharmaceutical and Medical Device Promotion and Development Scheme (PMPDS), the government has facilitated extensive collaboration between industry stakeholders, researchers and policymakers.

As part of the initiative, 47 stakeholder events and 12 sectoral studies have been conducted, contributing to policy formulation, knowledge generation and innovation-led growth in the pharmaceutical and medical devices sectors.

In a major push for biotechnology and next-generation medicines, the Union Budget 2025-26 announced the launch of Biopharma SHAKTI – Strategy for Healthcare Advancement through Knowledge, Technology and Innovation.

The programme carries an outlay of ₹10,000 crore over five years and aims to strengthen India’s biopharmaceutical sector by promoting research, innovation and domestic production of biologics and biosimilars.

The Department said the initiative will help create a self-reliant ecosystem for advanced biological medicines while improving access to affordable treatments for patients.

The government’s pharmaceutical strategy has increasingly focused on balancing affordability, innovation and industrial growth. By combining large-scale healthcare initiatives such as Jan Aushadhi with manufacturing incentives, infrastructure development and biotechnology investments, policymakers aim to build a globally competitive pharmaceutical sector while ensuring healthcare remains accessible to citizens.

The sector’s growth comes at a time when India continues to play a critical role in global healthcare supply chains. Often referred to as the “Pharmacy of the World,” India is one of the largest suppliers of generic medicines globally and a major producer of vaccines and pharmaceutical products.

The Department said the progress achieved over the past twelve years demonstrates the sector’s growing contribution to economic development, employment generation and healthcare accessibility. As India advances towards its vision of Viksit Bharat by 2047, the pharmaceutical industry is expected to remain a key driver of innovation, manufacturing growth and affordable healthcare delivery.

With more than 19,200 Jan Aushadhi Kendras, over ₹43,800 crore in cumulative investments under pharmaceutical and medical device PLI schemes, sales exceeding ₹3.72 lakh crore and employment generation surpassing 1.2 lakh jobs, the sector’s transformation reflects one of the most significant healthcare and industrial success stories of the past decade.