Structural Shift in Healthcare Manufacturing
Economic Survey Signals Transformation in India’s Pharma and Medical Devices Sector: The Economic Survey 2025–26 highlights a clear structural transition underway in India’s pharmaceutical and medical devices sectors. The focus is gradually shifting from volume-led production to value-driven growth, anchored in innovation and technology. This change reflects India’s ambition to move higher in the global healthcare value chain.
The Survey notes that policy support, improved infrastructure, and market maturity are pushing industries to adopt advanced manufacturing models. This transformation is crucial for sustaining long-term competitiveness in regulated global markets.
Static GK fact: India has historically been known as the “pharmacy of the world” due to its dominance in generic drug supply.
Transition in the Pharmaceutical Industry
India’s pharmaceutical industry is moving beyond mass production of basic generics. The Economic Survey highlights increasing emphasis on complex generics, biosimilars, and innovation-led products. These segments offer higher margins and demand stronger research and regulatory capabilities.
India currently ranks 11th globally in pharmaceutical exports by value, holding nearly 3 per cent of the global market share. At the same time, it remains the third-largest pharmaceutical producer by volume worldwide.
Exports from India reach 191 countries, with nearly 20 per cent of global generic medicines supplied by Indian firms. A significant portion of these exports goes to highly regulated markets such as the United States and Europe, reflecting growing compliance with international quality standards.
Static GK Tip: Regulated pharmaceutical markets typically require approvals from authorities like USFDA and EMA, increasing entry barriers but also export value.
Emergence of a Competitive Medical Devices Sector
The medical devices sector is emerging as a major growth driver within India’s healthcare ecosystem. According to the Survey, exports of medical devices expanded rapidly from USD 2.5 billion in FY21 to USD 4.1 billion in FY25. Indian medical devices now reach 187 countries, indicating expanding global acceptance.
Domestic manufacturing capabilities have moved into high-end segments. India now produces MRI scanners, CT scanners, linear accelerators, cardiac stents, and ventilators. This marks a decisive shift from low-technology consumables to sophisticated imaging and life-support equipment.
Static GK fact: Medical devices are classified as a sunrise sector due to their high growth potential and strategic importance.
Export Growth and Vaccine Leadership
India continues to play a critical role in global public health through its vaccine manufacturing strength. The Survey reiterates that India supplies the majority of the world’s DPT, BCG, and measles vaccines, reinforcing its position as a reliable supplier of affordable vaccines.
In FY25, the pharmaceutical sector recorded an annual turnover of ₹4.72 lakh crore. Export growth during the period FY15 to FY25 registered a compound annual growth rate of 7 per cent, reflecting steady expansion despite global disruptions.
Static GK Tip: Vaccine diplomacy has enhanced India’s soft power in international relations.
Future Scope and Advanced Manufacturing
The Economic Survey identifies significant untapped potential in the medical devices industry. Reducing import dependence is highlighted as a priority for sustainable growth. Adoption of advanced manufacturing technologies, including artificial intelligence and 3D printing, is seen as essential.
The Survey also stresses the need for smoother global certification and regulatory harmonisation. Strengthening these areas will help Indian firms access international markets more easily and maintain export momentum in the long term.
Static GK fact: Advanced manufacturing improves precision, reduces costs, and enhances global competitiveness.
Static Usthadian Current Affairs Table
Economic Survey Signals Transformation in India’s Pharma and Medical Devices Sector:
| Topic | Detail |
| Economic Survey Focus | Shift from volume-led to value-driven growth |
| Pharma Production Rank | Third-largest producer by volume globally |
| Pharma Export Share | 3 per cent of global pharmaceutical exports |
| Export Markets | 191 countries including regulated economies |
| Medical Devices Export Growth | USD 2.5 billion to USD 4.1 billion (FY21–FY25) |
| High-End Devices Manufactured | MRI, CT scanners, ventilators, stents |
| Vaccine Leadership | Major global supplier of essential vaccines |
| Key Growth Enablers | Innovation, AI, 3D printing, regulatory streamlining |
