India’s pharmaceutical industry has long dominated the global generics market. However, industry leaders now say the next phase of growth lies in developing complex and innovative products at scale—while simultaneously adopting new capabilities such as artificial intelligence (AI). At a time when geopolitical headwinds, supply chain disruptions, and regulatory pressures are intensifying, top executives argue that Indian drugmakers must evolve beyond traditional generic manufacturing to stay globally competitive.
Affordable Innovation Must Remain Core
Sharvil Patel, Managing Director of Zydus Lifesciences and President of IPA, emphasised that affordability will continue to define India’s pharmaceutical identity. Indian companies have demonstrated their ability to manufacture affordable versions of both existing and newer medicines. However, Patel stressed that the industry’s next milestone is to build “innovation at scale.”
Importantly, he highlighted that this transformation will not happen in isolation. Instead, companies must increasingly rely on:
*Co-development partnerships
*Licensing agreements
*Strategic collaborations
By combining global alliances with domestic capabilities, Indian pharma can move up the value chain while maintaining cost competitiveness.
Shifting Mindset from “Cheaper” to “Faster”
Dilip Shanghvi, Executive Chairman of Sun Pharmaceutical Industries, called for a recalibration of the industry’s traditional generic mindset. According to Shanghvi, the sector has yet to achieve true “innovation at scale.” He attributed this gap partly to unfamiliarity with new decision-making frameworks required in innovative drug development.
Therefore, he urged companies to shift their strategic focus:
*From making products “cheaper and better”
*To delivering therapies “faster and better”
As more companies succeed in innovation-driven ventures, Shanghvi noted, broader industry confidence will follow. Success stories, in other words, will create a ripple effect.
The Need for more Breakthrough Examples
Nilesh Gupta, Managing Director of Lupin Limited, reinforced this point. He argued that the industry needs multiple examples of successful innovation-led business models to inspire wider transformation. Citing Glenmark Pharmaceuticals’ success in out-licensing a promising drug molecule, Gupta remarked, “We need 10 more of this.” Such achievements demonstrate that Indian firms can generate globally relevant intellectual property—not just manufacture generics for overseas markets.
R&D Investment and Partnerships: The Decade Ahead
Madan Mohan Reddy, Whole-Time Director at Aurobindo Pharma, highlighted another pressing concern: research spending remains insufficient to drive breakthrough innovation. Looking ahead, Reddy predicted that the coming decade will bring significant transformation to the pharmaceutical landscape. To navigate this shift successfully, companies must:
*Increase R&D investments
*Build deeper global partnerships
*Strengthen quality systems
*Integrate advanced technologies such as AI
Quality, he stressed, will remain non-negotiable as companies pursue higher-value products and regulated markets.
From Generics Powerhouse to Innovation Hub
Collectively, the industry leaders’ remarks signal a strategic turning point for Indian pharma. While generics will continue to be a strong foundation, sustainable growth will increasingly depend on complex biologics, specialty therapies, and innovation-driven pipelines. Moreover, as geopolitical uncertainties reshape global supply chains, Indian drugmakers have an opportunity to position themselves not just as low-cost manufacturers—but as reliable, innovation-focused global partners. As reported by thehindubusinessline.com, the shift toward “innovation at scale” could define the next decade of India’s pharmaceutical evolution.
