Indian Pharma market to expand by 8-9 percent in FY26: Report

New Delhi: Indian pharmaceutical market is projected to see a growth of 8-9 per cent year-on-year in FY26 as per the recent report by India Ratings and Research (Ind-Ra).

The report, released on Monday, also forecasts a 7.5-8.0% year-on-year growth for the sector in FY25.

This is compared to a 6.5% year-on-year growth in FY24 and a 9.9% YoY growth in FY23, said Krishnanath Munde, Associate Director at India Ratings and Research.

In February, the pharma market delivered revenue of 7.5 per cent year on year. This growth was driven by growth in price (5.2 per cent YoY) and new launches (2.4 per cent YoY), while volume growth continued to remain muted at negative 0.2 per cent YoY, the report said.

The sector reported growth at an average of 7.3 per cent year-to-date (YTD) in FY25. This was led by price growth (5.5 per cent), new launches growth (2.7 per cent), and volume growth.

Further, the moving annual total (MAT) -- or the 12-month rolling sales of overall pharma products -- saw an 8.1 per cent surge in February, the report said. Cardiac therapies outperformed growth in the pharma market with 10.8 per cent growth in MAT and a 13.7 per cent increase in monthly market share. This was followed by gastroenterology, neurology/Central Nervous System, and dermatology.

On the other hand, anti-infectives, respiratory, and gynaecology therapies saw a weak growth in February, the report said.

Meanwhile, another recent report showed that the pharma sector in the country is witnessing rapid production growth. The Indian pharma sector has grown at 8 per cent CAGR and has also seen a 9 per cent increase in export rates in 2024, according to the report by McKinsey & Company.

Expanding its capabilities in APIs and biotechnology, it has grown at 8 per cent CAGR, twice the global average. The country also emerged as the world’s largest supplier of generic medicines, with a 9 per cent pharma export growth rate, nearly double the global average, the report said.