India Pharma Shifts to Innovation and Digital Growth

The transition from volume-led growth to value- and innovation-led expansion is currently the defining trend of the Indian pharmaceutical business.

Indian businesses are making large investments in R&D, biosimilars, sophisticated generics, and specialty medications.

According to Bhavin Mukund Mehta, vice chairman of Pharmexcil and full-time director of Kilitch Drugs, the increase in partnerships for digital therapies and new molecule research indicates a shift toward higher-margin, science-driven models.

In order to expedite manufacturing, quality assurance, and discovery, the sector is simultaneously embracing digitalization through automation, data analytics, and artificial intelligence.

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The industry is at a turning point where it must strike a balance between its worldwide leadership in generics and the increasing demands of innovation, independence, and digital transformation.

He continued, "The industry continues to show incredible resilience and importance as we reach the end of 2025, underlining its place as a cornerstone of both national health and global supply networks."

No doubt, this industry’s fundamentals remain strong, said Mehta and quoted Pharmexcil data to state, “Pharmaceutical exports touched US$ 30.5 billion in FY 2024–25, registering over 9% year-on-year growth.

The domestic market, estimated at US$ 55 billion, is projected to cross US$ 130 billion by 2030, driven by rising healthcare spending, policy reforms, and growing chronic disease prevalence.

India continues to supply about 20% of global generic medicines and nearly 60% of global vaccine which is a testament to its scale, quality, and trust.”

The merging of digital health and pharmaceuticals is a significant development.

To promote patient adherence and preventive care, businesses are incorporating wearable technology, telemedicine, and AI-driven diagnostics.

According to him, this movement represents a change from "medication supply" to "health solutions," which is consistent with India's broader healthcare transition.