India’s pharmaceutical sector continues to solidify its role as one of the most dynamic and essential sectors in the economy. According to market research firm Pharmarack, the Indian pharma market expanded by 8.4% in FY25, driven largely by price increases across key therapeutic areas and steady growth in volume. The total turnover crossed ₹2.25 lakh crore (approximately US$ 25.95 billion), indicating the sector’s strong fundamentals and rising demand.

Cardiac, Gastrointestinal, and Anti-Diabetic Therapies Lead the Surge

Three major therapeutic segments—cardiac, gastrointestinal (GI), and anti-diabetic—contributed significantly to this year’s pharma market boom.

• The cardiac segment posted the highest value growth at 10.8%, reaffirming the growing prevalence of heart-related conditions and the continued demand for cardiovascular drugs.

• The gastrointestinal therapy market grew by 10.2%, indicating increased awareness and treatment of digestive issues.

• The anti-diabetic market followed with an 8% growth, reflecting the growing diabetes burden in the country.

Together, these three segments make up 34% of India's total pharma market, highlighting their critical role in driving value and volume growth.

Top-Selling Drugs: Augmentin and Glycomet GP Dominate

In terms of individual drug performance, GSK’s Augmentin emerged as India’s top-selling medicine in FY25, recording sales worth ₹816 crore (around US$ 94.13 million).

Close behind was Glycomet GP, an anti-diabetic drug from USV, which posted sales of ₹803 crore (approximately US$ 92.63 million). These figures show strong demand in both the antibiotic and diabetes segments, pointing to sustained consumption patterns and healthcare needs.

Impact of March 2025 Market Events: New Launches and Patent Expiries

One of the most influential developments during FY25 was the launch of new high-impact drugs and the expiry of key patents.

• The patent expiry of empagliflozin, a popular anti-diabetic molecule, opened up opportunities for generic manufacturers to enter the market, impacting pricing dynamics and competition.

• Meanwhile, the launch of Mounjaro, a novel anti-obesity drug containing the molecule tirzepatide, marked a significant entry into the nascent but rapidly growing weight management segment.

Ms. Sheetal Sapale, Vice President at Pharmarack, noted that tirzepatide’s entry is expected to energise India’s anti-obesity drug market, creating new demand and opportunities for pharmaceutical companies.

Monthly Growth Snapshot: March 2025 Performance

March 2025 alone saw a 7.5% value growth in the pharma market. This was driven not just by price hikes but also due to several pharma majors delivering double-digit growth in monthly sales.

Key companies that stood out in March include:

• Sun Pharma

• Torrent Pharmaceuticals

• Zydus Lifesciences

• Intas Pharmaceuticals

These companies reported strong sales momentum, backed by both volume upticks and effective distribution of new launches and branded generics.

Price-Led Growth with Modest Volume Support

While the 8.4% annual growth figure appears impressive, it is important to note that price hikes were the main driver. According to Pharmarack, unit sales volume increased by just 1.2% in FY25, indicating that demand growth was modest and the bulk of revenue gains came from price revisions and premium product launches.

This trend reflects a strategic shift by pharma companies towards value enhancement over pure volume play, with a focus on specialty drugs, patent expirations, and high-margin therapies.

Looking Ahead: Outlook for FY26

The Indian pharmaceutical industry is expected to maintain its growth momentum in FY26, powered by:

• Expanding healthcare coverage and insurance penetration

• Continued demand for chronic therapy areas like cardiac and diabetes

• Government’s infrastructure push under Ayushman Bharat and Production Linked Incentive (PLI) schemes

• Rising export opportunities due to global supply chain diversification

New drug approvals, increasing private healthcare access, and urbanisation-led lifestyle changes will further increase the demand for pharmaceutical solutions across segments.

Conclusion: A Market on the Rise Despite Challenges

India’s pharmaceutical market in FY25 proved to be resilient and opportunity-rich, despite broader economic uncertainties. The strong performance of chronic segments, blockbuster drugs like Augmentin and Glycomet GP, and emerging opportunities in areas like obesity and generics post-patent expiry are clear indicators of future potential.

With consistent investment in research and development, growing partnerships, and a strong domestic demand base, the Indian pharmaceutical sector remains a critical pillar of the economy and a leading global player in generic and specialty medicine manufacturing.

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