The Indian pharmaceutical industry has carved out a unique identity, balancing scientific excellence with entrepreneurial ambition.
Pharma firms in India reached the apogee in 1971 when India’s top 30 pharma companies created sales records of up to Rs 1,310 million. Fast forward 53 years to 2024, and the landscape had transformed dramatically: top 30 Indian firms recorded sales of Rs 1,661.7 billion, with only six foreign companies holding a 15% share of the market.
India is now the third-largest manufacturing base in the world and supplies 20% of all generic medicines globally.
Gujarat has emerged as the centerpiece of the story: Alembic in Vadodara has remained among the top 30 pharmaceutical firms from 1920 to 2024. Many pharmaceutical companies based in Gujarat are now being managed by their second or third generation.
Two years ago, reports emerged highlighting Gujarat’s rise in pharma machinery with a 35% share of India’s production.
HG Koshia, commissioner of the Food and Drug Control Administration in Gujarat, was quoted as saying that since the implementation of GST, the state had witnessed a surge in new investments in the pharma sector.
He said that several companies from northern and northeastern states made Gujarat their base on account of uniformity in taxation. According to him, this trend accelerated further after the Covid pandemic, as pharma manufacturers in Gujarat demonstrated notable resilience.
He mentioned that in 2022–23, the administration had approved plans for 139 new modern medicine manufacturing units, and the inflow of investments had continued into the current fiscal year as well. Koshia added that Gujarat housed 4,000 conventional medicine manufacturing units, most of which were geared toward both domestic and export markets and had obtained the required approvals.
Ahmedabad, celebrated as a critical player in the generic drugs sector, is augmented by Gujarat’s business friendly policies and strong pharmaceutical industry presence.
Haryana and Punjab too contribute to the pharmaceutical market, but these states don’t have the strong infrastructure available in Maharashtra and Gujarat to propel the industry to the next level.
Chinmay Tumbe, faculty member at the Indian Institute of Management-Ahmedabad (IIMA), believed the latest heady numbers were India’s demonstration of the “technocrat entrepreneurship” model.
According to media outlets, Tumbe pointed to pioneering figures such as P C Ray, Vikram Sarabhai, Yusuf Hamied, and K Anji Reddy. He said these industry leaders held doctorates and combined technical expertise with strong business instincts.
He said The Patents Act, 1970 contributed massively to India’s pharmaceutical boom.
The legislation enabled reverse engineering and opened the doors to the production of generic medicines. “But India was not alone in the initiative. Several other countries had such laws in place or passed such laws during a similar timeframe. What made the Indian story compelling was first-generation entrepreneurship in the sector,” he was quoted as saying.
Tumbe also discussed the India Pharma Archives project, which aims to chronicle the evolution of the industry. It includes vital documents and oral histories collected from 60 individuals who have shaped the sector: founders, CEOs, and chairmen among them. He noted that this is the first initiative of its kind in India and added that the archives will soon be made publicly accessible.
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