Prime Minister Modi addressed Indian pharmaceutical industry leaders, urging them to break into the global top-10 innovative companies list. India currently ranks third in pharmaceutical production by volume and is the world's largest supplier of generic medicines. Modi called for greater investment in R&D, domestic API manufacturing, and quality standards to reduce dependence on Chinese active pharmaceutical ingredients and shift from a generics-only identity toward original drug discovery and innovation.

India's pharmaceutical sector is structurally significant but strategically incomplete. The country produces about 20% of the world's generic medicines by volume and supplies roughly 60% of global vaccine demand, earning it the title 'pharmacy of the world.' Yet it remains heavily reliant on China for Active Pharmaceutical Ingredients (APIs) — the chemical building blocks of drugs — creating a supply-chain vulnerability exposed sharply during COVID-19.

The government has responded with the Production Linked Incentive (PLI) scheme for pharmaceuticals and a separate PLI scheme for bulk drugs (APIs), both launched under the Department of Pharmaceuticals (Ministry of Chemicals and Fertilizers). The PLI for bulk drugs targets 41 critical APIs and aims to reduce import dependence. A Bulk Drug Parks scheme complements this by funding shared infrastructure.

India's pharma exports crossed ₹2.06 lakh crore (approximately $25 billion) in FY2023-24. The sector employs over 3 million people and has more US-FDA-approved plants outside the US than any other country — a fact frequently tested in exams.

The PM's call to enter the top-10 innovators list signals a policy shift: from manufacturing-led growth (generics and vaccines) toward R&D-led growth (new molecular entities and biologics). This connects to the New Drugs and Clinical Trials Rules, 2019, which streamlined approvals for innovative drugs, and the Jan Aushadhi Scheme, which promotes affordable generic access domestically.