Indian pharma will be key to countering the next pandemic

India is uniquely positioned to lead the global response to health threats, provided timely investments are made in its pharmaceutical capabilities. The country’s ability to produce affordable medicines at scale, coupled with its untapped potential for innovation, positions it to evolve beyond its role as the pharmacy to the world and into an innovation hub. Such a transformation can address the unmet needs of the Global South, which often lacks access to life-saving solutions like vaccines.

COVID (Pixabay)

India’s pharmaceutical sector demonstrated unmatched agility during the Covid-19 pandemic. Producing over 60% of the global vaccine supply, including Covaxin and Covishield, India exported essential drugs and vaccines to more than 150 countries. According to the ministry of commerce, pharmaceutical exports surged to $24.62 billion in 2021–22, largely driven by pandemic-related supplies.

Over 50% of Africa’s generics, nearly 47% of the US’s generic demand, and approximately 25% of the UK’s medicine needs are met by Indian pharma, per the ministry of chemicals and fertilisers. Initiatives like Vaccine Maitri further highlighted India’s commitment to health equity, supplying over 100 million vaccine doses to low- and middle-income countries. These efforts underscore the sector’s potential to become an innovation hub capable of addressing global health challenges.

While India’s role as the pharmacy of the world is well-established, its next frontier lies in becoming a hub for pharmaceutical innovation. Fragmented ecosystems and insufficient research and development (R&D) investment have hindered progress. However, the pandemic revealed the sector’s latent potential when supported by targeted policies and public-private collaborations. For instance, Covaxin’s development exemplified how partnerships can spur innovation.

The development of mRNA vaccines during the pandemic—hailed as rapid breakthroughs—was the result of decades of sustained investment and collaboration between governments, industry, and academia. India must adopt a similar model by fostering an ecosystem that integrates government support, private sector ingenuity, and academic excellence. Innovation thrives in robust ecosystems, not in isolation.

Innovation thrives not in isolation but within a robust ecosystem that integrates government support, private sector ingenuity, and academic excellence. For India’s pharmaceutical sector to harness its full potential and create sustained innovation momentum, several key actions are essential. First, establishing a National Innovation Fund dedicated to high-risk, high-reward research projects will provide much-needed financial support for groundbreaking ideas. Second, incentivising talent through programs that attract and retain top scientists and researchers, alongside grants and tax benefits for innovation-driven enterprises, will ensure a steady pool of expertise. Third, fostering public-private partnerships—proven to accelerate breakthroughs during the pandemic—must become a systemic priority for sustained progress. Finally, enhancing global collaborations is critical. By positioning itself as a partner of choice for global pharma giants and leveraging its cost advantages and manufacturing strengths, India can emerge as a hub of innovation in healthcare. These measures together can lay the foundation for an ecosystem that transforms the Indian pharma landscape into a global powerhouse of innovation.

The pandemic exposed the risks of over-reliance on a single source for drug raw materials, leading to shortages. Recognising this, India has launched initiatives like the Make in India programme for bulk drug production and established dedicated Bulk Drug Parks with state-of-the-art infrastructure. These parks aim to reduce costs, improve efficiency, and rebuild end-to-end drug manufacturing capabilities.

The $2 billion Production Linked Incentive (PLI) scheme further boosts domestic production of key starting materials (KSMs) and active pharmaceutical ingredients (APIs). To maximise these initiatives, industry players must proactively invest in technology, upskill their workforce, and collaborate with academia and global counterparts. Effective execution could make India self-reliant in critical drug manufacturing within five years and position it as a viable alternative source for drug raw materials globally.

India’s pharmaceutical sector stands at a critical juncture. The achievements of the past—rooted in perseverance, innovation, and excellence—provide a strong foundation for a future where India leads not just in drug manufacturing but also in drug discovery.

The decisions made today will determine whether we are prepared to meet tomorrow’s health challenges. With coordinated efforts between the government and the industry, and a global vision, India can build an innovation-driven pharmaceutical sector. This sector would not only address domestic needs but also offer groundbreaking solutions to the world, ensuring readiness for the next health crisis.

This article is authored by Anil Agrawal, former Member of Parliament, Rajya Sabha.

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