The Indian pharma sector’s value can grow 150% to ₹10 lakh crore by partnering with academia, as envisioned by Prime Minister Narendra Modi. Speaking at a post-budget webinar on health and medical research on March 5, 2025, in New Delhi, the PM emphasized the transformative potential of collaboration between industry and academic institutions. Currently valued at ₹4 lakh crore, the Indian pharmaceutical industry stands at a pivotal juncture. With strategic partnerships, affordable healthcare initiatives, and reduced dependence on foreign nations, this sector could become a global powerhouse. This article delves into the PM’s vision, the role of government schemes like Ayushman Bharat and Jan Aushadhi, and the steps needed to achieve this ambitious growth target.
The Indian pharma sector has long been a cornerstone of the nation’s economy, renowned for its generic medicines and vaccine production. However, PM Modi’s statement underscores a new direction—leveraging academia to drive innovation and scalability. By fostering collaboration, the sector can tap into cutting-edge research, enhance drug development, and address pressing healthcare challenges. Additionally, initiatives like health insurance and low-cost pharmacy schemes have already saved poor and middle-class patients over ₹1 lakh crore, reinforcing the government’s commitment to affordable healthcare.
The Current State of the Indian Pharma Sector
The Indian pharmaceutical industry is a global leader, supplying affordable medicines and vaccines worldwide. Valued at ₹4 lakh crore today, it plays a critical role in India’s economy and healthcare ecosystem. The sector’s strengths lie in its cost-effective production, skilled workforce, and robust manufacturing capabilities. However, challenges such as reliance on imported raw materials and limited innovation have hindered its full potential.
PM Modi’s vision to grow the Indian pharma sector’s value to ₹10 lakh crore highlights the need for a paradigm shift. By partnering with academia, the industry can overcome these hurdles and position itself as a hub for research and development (R&D). This collaboration could lead to breakthroughs in drug discovery, medical devices, and healthcare technologies, driving both economic growth and improved public health outcomes.
The government’s focus on reducing dependence on foreign nations, a lesson underscored by the COVID-19 pandemic, further amplifies this vision. During the crisis, life-saving equipment and medicines were weaponized, exposing vulnerabilities in global supply chains. India’s response—exporting vaccines and medicines while strengthening domestic production—demonstrated its resilience. Now, the emphasis is on self-reliance, or Atmanirbhar Bharat, through industry-academia partnerships.
How Partnerships with Academia Can Drive Growth
Collaboration between the Indian pharma sector and academia is a game-changer. Universities and research institutions possess the intellectual capital to innovate, while pharmaceutical companies bring scalability and market expertise. Together, they can address critical gaps in R&D, such as developing new drugs, improving manufacturing processes, and creating affordable medical devices.
For instance, academic institutions can conduct foundational research on diseases like diabetes, cancer, and heart conditions—ailments that burden India’s healthcare system. Pharma companies can then translate these findings into marketable products. This synergy not only accelerates innovation but also reduces costs, making treatments more accessible to the masses. PM Modi’s target of ₹10 lakh crore hinges on this model, which could elevate the Indian pharma sector’s global standing.
Moreover, such partnerships can foster a culture of entrepreneurship. Students and researchers, equipped with industry support, can launch startups focused on healthcare solutions. This aligns with the PM’s emphasis on emerging technologies like drones for medicine delivery, which could revolutionize last-mile access in rural areas. By nurturing talent and innovation, the Indian pharma sector can meet both domestic and international demands.
Government Initiatives Supporting Affordable Healthcare
A key pillar of PM Modi’s strategy is making healthcare affordable and accessible. The Ayushman Bharat scheme, a flagship health insurance program, has saved poor patients approximately ₹80,000 crore by providing free treatment. Meanwhile, the Jan Aushadhi Kendras—low-cost pharmacy outlets—have saved ₹20,000 crore by offering affordable medicines. Together, these initiatives have alleviated financial burdens for poor and middle-class families, totaling savings of over ₹1 lakh crore.
The PM-Ayushman Bharat Health Infrastructure Mission takes this further by building a robust healthcare ecosystem. It supports the construction of new hospitals and over 1.5 lakh health centers nationwide. These centers provide testing, first aid, and screening for serious illnesses, bringing healthcare closer to communities. This infrastructure not only supports the pharma sector by increasing demand for medicines but also creates jobs and strengthens public health.
The government’s holistic approach, as Modi noted, extends beyond the Health Ministry. It involves coordination across departments to prioritize affordability. For example, the Production Linked Incentive (PLI) scheme boosts domestic manufacturing of drugs and medical devices, reducing import reliance. These efforts align with the goal of growing the Indian pharma sector’s value while ensuring healthcare remains within reach for all.
Reducing Dependence on Foreign Nations: Lessons from COVID-19
The COVID-19 pandemic exposed the risks of depending on foreign nations for critical healthcare supplies. PM Modi highlighted how medicines, vaccines, and medical devices were weaponized during the crisis, prompting India to advocate for “One Earth, One Health.” This vision emphasizes global cooperation alongside self-reliance.
India’s response was commendable—it supplied vaccines to over 100 countries while ramping up domestic production. However, the reliance on imported Active Pharmaceutical Ingredients (APIs) from nations like China remains a vulnerability. Partnering with academia can address this by fostering research into local API production. By developing cost-effective alternatives, the Indian pharma sector can reduce dependence and enhance supply chain security.
This shift also opens export opportunities. As the sector grows to ₹10 lakh crore, India can strengthen its position as the “Pharmacy of the World.” Affordable, high-quality drugs and devices, backed by innovative research, could capture larger shares of regulated markets like the US, UK, and EU. Reducing dependence thus serves a dual purpose: bolstering national security and boosting economic growth.
The Role of Technology in Transforming Healthcare
Emerging technologies are central to PM Modi’s vision for the Indian pharma sector. Drones, for example, are revolutionizing medicine delivery and testing services in remote areas. This innovation enhances accessibility, a key goal of universal healthcare. Entrepreneurs can seize this opportunity to develop solutions tailored to India’s diverse geography, further driving sectoral growth.
Additionally, advancements in medical devices and diagnostics can benefit from industry-academia collaboration. Research into AI-driven diagnostics or low-cost imaging tools could position India as a leader in healthcare technology. The government’s support for over 260 new medical colleges and 157 nursing colleges also ensures a skilled workforce to adopt and innovate with these technologies.
By integrating technology, the Indian pharma sector can improve efficiency, reduce costs, and expand its reach. This aligns with the PM’s call for entrepreneurs to ensure India becomes self-reliant in healthcare technology, eliminating the need to import solutions.
Building Human Resources for a Stronger Pharma Sector
Human resources are the backbone of any industry, and the pharma sector is no exception. PM Modi emphasized the addition of over 260 medical colleges in recent years, doubling MBBS and postgraduate seats since 2014. This expansion addresses the shortage of skilled professionals, a critical factor in achieving the ₹10 lakh crore valuation.
The decision to establish 157 nursing colleges near medical colleges is equally significant. Nurses play a vital role in healthcare delivery, and their training can meet both domestic and global demands. This initiative not only strengthens India’s healthcare system but also creates exportable talent, contributing to economic growth.
Academia plays a dual role here—educating professionals and conducting research. By partnering with the pharma industry, universities can align curricula with market needs, producing graduates ready to innovate. This human capital will drive the sector toward its ambitious growth target.
Opportunities and Challenges Ahead
The path to ₹10 lakh crore is filled with opportunities. Collaboration with academia can unlock innovation, while government schemes ensure affordability. The focus on self-reliance and technology further enhances India’s competitive edge. However, challenges like regulatory hurdles, funding for R&D, and competition from global players must be addressed.
To overcome these, the government can incentivize private investment in pharma-academia projects. Streamlining regulations and increasing R&D budgets will also help. With concerted efforts, the Indian pharma sector can turn challenges into stepping stones for growth.
FAQs: Understanding the Indian Pharma Sector’s Growth Potential
How can the Indian pharma sector grow to ₹10 lakh crore?
The sector can achieve this through partnerships with academia for innovation, government support via schemes like PLI, and a focus on self-reliance in drug production.
What role do Ayushman Bharat and Jan Aushadhi play?
These schemes have saved over ₹1 lakh crore for patients by providing free treatment and affordable medicines, boosting healthcare access and supporting the pharma industry.
Why is reducing dependence on foreign nations important?
The COVID-19 pandemic showed how reliance on imports can disrupt supply chains. Self-reliance ensures stability and enhances India’s global pharma leadership.
How does technology contribute to this vision?
Technologies like drones and AI improve medicine delivery and diagnostics, making healthcare more accessible and efficient.
A Bright Future for the Indian Pharma Sector
The Indian pharma sector’s value can grow 150% to ₹10 lakh crore by partnering with academia, as PM Modi envisions. This growth hinges on innovation, affordability, and self-reliance—principles reinforced by schemes like Ayushman Bharat and Jan Aushadhi, which have saved over ₹1 lakh crore for patients. By leveraging technology, building human resources, and reducing dependence on foreign nations, India can solidify its status as a global pharma leader.
The journey requires collaboration, investment, and resolve. However, with the government’s proactive stance and the sector’s inherent strengths, this target is within reach. As Modi stated, the Indian pharma sector’s growth is not just an economic goal—it’s a step toward universal healthcare and a healthier nation. For more insights, explore resources like The Hindu or Invest India, which track India’s pharma evolution closely.
