**Executive Summary**
The Economic Survey 2025-26 highlights India's shift toward a value-driven approach in the pharmaceutical industry, emphasizing innovation and complex generics. The medical devices sector is rapidly becoming globally competitive, with rising exports. The survey notes the necessity of reducing import dependence through advanced manufacturing technologies and streamlined certification processes.
**Key Points / Main Content**
* **Pharmaceutical Industry Shift:**
* Moving from a volume-driven approach to a value-driven approach.
* Greater emphasis on complex generics, biosimilars, and innovation.
* **Medical Devices Sector:**
* Rapidly becoming globally competitive with exports to 187 countries in FY25.
* Manufactures high-end equipment like MRI, CT scanners, linear accelerators, cardiac stents, and ventilators.
* Medical device exports have grown from USD 2.5 billion in FY21 to USD 4.1 billion in FY25.
* Need to reduce import dependence via AI, 3D printing, and streamlined certification.
* **Indian Pharmaceutical Industry Overview:**
* Third-largest in the world by volume, meeting 20% of global generics demand.
* Exports to 191 countries in FY25, with over 50% directed to highly regulated markets.
* Global leader in low-cost vaccine supply for diseases like diphtheria, tetanus, pertussis, BCG, and measles.
* Annual turnover reached ₹4.72 lakh crore in FY25, with exports growing at a CAGR of 7% over the last decade (FY15 to FY25).
**Impact Analysis**
**Stakeholder: Pharmaceutical Manufacturers**
* **Impact:**
* Need to focus on value-driven products and innovation.
* Opportunity to expand exports, especially in complex generics and biosimilars.
* **Action Required:**
* Invest in R&D for advanced manufacturing technologies like AI and 3D printing.
* Streamline global certification processes to increase international market access.
**Stakeholder: Medical Device Manufacturers**
* **Impact:**
* Opportunity to expand exports and global competitiveness.
* Need to reduce import dependence by adopting advanced manufacturing technologies.
* **Action Required:**
* Adopt AI and 3D printing technologies in the manufacturing process.
* Streamline global certification processes.
**Stakeholder: Government/Regulatory Bodies**
* **Impact:**
* Opportunity to showcase India's advancements in the pharmaceutical and medical device sectors.
* Need to support the industry in adopting advanced manufacturing technologies and streamlining certification processes.
* **Action Required:**
* Facilitate the adoption of AI and 3D printing technologies in the pharmaceutical and medical device sectors.
* Simplify and streamline global certification processes to improve market access.
Key Entities Referenced
Economic Survey 2025-26: Key document highlighting the shift in India's pharmaceutical industry towards high-value products and innovation.
Department of Pharmaceuticals: The government department responsible for the pharmaceutical sector mentioned in the article.
Ministry of Chemicals and Fertilizers :
Department of Pharmaceuticals
Economic Survey 2025-26 Highlights India’s Shift
Toward High-Value Pharma and Innovation
Medical Devices Industry Emerges as a High-Tech Global
Manufacturing Hub
Rising Exports and Advanced Manufacturing Power India’s
Healthcare Growth
प्रव तथ: 30 JAN 2026 9:36PM by PIB Delhi
The Economic Survey 2025-26 has observed that, the pharmaceutical industry in India is shifting from a
volume-driven approach to a value-driven approach, to move up the value chain with greater emphasis on
complex generics, biosimilars and innovation.
The survey has stated that India’s medical devices sector is rapidly becoming globally competitive, with
exports to 187 countries in the financial Year 2025. The industry now manufactures high-end equipment,
including MRI and CT scanners, linear accelerators, cardiac stents, and ventilators. The survey noted that
this expansion into sophisticated imaging and life-support technologies marks a significant shift toward
high-tech medical manufacturing. India currently ranks 11th globally in pharmaceutical exports by value,
with a 3 percent share and medical devices exports have grown significantly from USD 2.5 billion in
FY21 to USD 4.1 billion in FY25. The Survey states that there exists substantial scope for further
expansion and adds scaling up the medical devices sector necessitates reducing import dependence
through the adoption of advanced manufacturing technologies such as AI and 3D printing, along with
streamlining global certification processes to strengthen international market access.
The Indian pharmaceutical industry is the world’s third-largest by volume, meeting approximately 20 per
cent of global generics demand, with exports to 191 countries in Financial Year (FY)2025. Over 50 per
cent of these exports are directed to highly regulated markets such as the United States and Europe.
Beyond generics, India is a global leader in low-cost vaccine supply, providing a majority of the world’s
diphtheria, tetanus and pertussis (DPT), Bacillus Calmette-Guerin (BCG) and measles vaccines. In FY25,
the sector’s annual turnover reached ₹4.72 lakh crore, with exports growing at a CAGR of 7 per cent over
the last decade (FY15 to FY 25).
Steady Rise in India’s Pharmaceutical Exports (FY15–FY25)***
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