Indian Pharma Market Surges to ₹2.4 Lakh Crore Milestone in 2025; Growth Driven by Chronic Care and New Launches

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The Indian Pharmaceutical Market (IPM) has achieved a significant milestone, concluding the calendar year 2025 with a total valuation of approximately ₹2,40,672 crore. According to the latest performance report from pharma market intelligence firm Pharmarack, the industry registered a robust value growth of 8.1% over the previous year.

Key Growth Levers: Pricing and Innovation

The sector’s resilience in 2025 was primarily anchored by three levers:

• Price Increases: Contributed approximately 5.4% to the overall growth.
• New Product Launches: Added a significant 2.1% to the market value.
• Volume Stability: While unit growth remained marginal at 0.5% for much of the year, it saw a steady acceleration toward December, hitting 2.6% as consumption patterns strengthened.

Therapy Trends: The “GLP-1” Effect

Chronic and lifestyle-led therapies emerged as the primary engines of expansion. A standout highlight of 2025 was the explosive growth of the anti-obesity segment, specifically driven by GLP-1 agonists.

• Anti-Diabetic & Cardiac: These segments led the charge, with the anti-diabetic market fueled by high-value molecules like Eli Lilly’s Mounjaro and Novo Nordisk’s Rybelsus.
• Top Brands: While traditional leaders like Augmentin and Glycomet GP maintained their dominance on a Moving Annual Total (MAT) basis, newer entries like Mounjaro and Foracort surged to the top of monthly sales charts by December 2025.

Corporate Performance

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Domestic giants continued to dominate the landscape:

• Sun Pharma retained its leadership position with annual domestic sales exceeding ₹20,250 crore.
• Abbott India, Cipla, Mankind Pharma, and Alkem Laboratories rounded out the top five, benefiting from strong portfolios in chronic care.

2026 Outlook: The Rise of Branded Generics

Looking ahead, the report maintains a “realistic” growth forecast of 7.8% to 8.1% for 2026. A major shift is expected starting March 2026, as several high-profile patents expire, paving the way for the entry of branded generics.

Industry experts anticipate that while these generics—typically launched at 20-35% of the innovator price—will trigger a massive 2x-5x surge in unit consumption, they may also lead to a moderation in value growth due to price erosion. Companies such as Dr. Reddy’s Laboratories, Sun Pharma, and Zydus Lifesciences are noted to be well-positioned to capitalize on this volume-led transition.

Industry Summary Table (MAT Dec 2025)

“The IPM continues to show remarkable resilience,” the report concludes, noting that the shift toward premium lifestyle therapies and demographic-driven treatments for an aging population will likely sustain the industry’s momentum for the foreseeable future.

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