The Indian Pharmaceutical Market (IPM) exhibited a robust performance in August 2025, registering substantial growth driven by strong domestic demand and increased exports.
Market Growth and Key Statistics The IPM grew by 8.1% year-on-year in August 2025, closely aligning with the 8% growth observed in FY25. According to Pharmarack data, the total market value rose 8.7% YoY to Rs. 20,984 crore (US$ 2.38 billion). This follows a 7.1% growth in July 2025, indicating sustained momentum. However, unit sales experienced a slight decrease of 0.8% during the month.
Performance of Key Therapeutic Areas Chronic therapies significantly contributed to the market's expansion, with a 12% growth in August 2025. Cardiac and anti-diabetic drugs were major drivers, recording growth rates of 11% each, spurred by the increasing demand for GLP-1 molecules. The cardiac segment expanded by 13.2% and the anti-diabetic segment grew by 9.4%, highlighting the strong need for chronic and specialty treatments. Central nervous system (CNS) drugs also showed an 8% increase.
Other therapies that posted strong gains include: Respiratory medicines, which were up by 19% and oncology, which demonstrated a 23% increase. Rising demand in respiratory and anti-neoplastic therapies further boosted overall growth.
In contrast, acute therapies grew at a slower pace of 6%. Anti-infectives improved by 6%, gastrointestinal medicines saw a 2% increase, and vitamins, minerals, and nutrients (VMN) rose by 7%.
Top Market Players Sun Pharma maintained its market leadership with an 8.3% market share and a growth rate of 13.7%. Abbott and Mankind followed, each holding 5.9% of the market. Other significant contributors included Cipla, Alkem, Intas, and Torrent, supported by strong brand performance from drugs like Augmentin, Glycomet GP, Pan, and Liv.52, which grew by 13.9%.
Export Performance India's total exports of merchandise and services reached USD 69.16 billion in August 2025, marking a 9.34% increase compared to the previous year. Exports of drugs and pharmaceuticals climbed 6.94%, from USD 2.35 billion in August 2024 to USD 2.51 billion in August 2025. Cumulatively, exports in the April–August 2025 period were estimated at USD 349.35 billion, a 6.18% year-on-year increase. Laurus Labs Ltd. saw its exports grow by 94% year-on-year and 6% month-on-month, with an export value of $37.4 million for August. Divi's Laboratories Ltd. experienced a 5% year-on-year increase and a 32% month-on-month increase, reaching $89 million in August. Neuland Laboratories Ltd. reported exports worth $12 million in August 2025, marking a 433% year-on-year growth and a 250% month-on-month surge.
However, Blue Jet Healthcare Ltd.'s exports declined to $3.9 million in August 2025, and Syngene recorded $7 million in exports for August 2025, down from previous periods.
Import Overview Imports of medicinal and pharmaceutical products rose to USD 780.70 million in August 2025, a 1.26% increase from USD 770.95 million in August 2024. For April–August 2025, imports stood at USD 390.78 billion, a 2.49% rise year-on-year.
Future Outlook and Challenges The Indian Pharmaceutical Market is expected to maintain a healthy revenue growth of 7-9% in FY26. Sales force expansion, improved productivity of medical representatives, deeper rural distribution, and new product launches are expected to support 8-10% revenue growth in FY26 in the domestic market.
However, the US market presents a more cautious outlook. While revenues grew 9.9% in FY25, a slowdown is expected due to price erosion and declining sales of key products like lenalidomide. The US government's proposal for a 'most favored nation' (MFN) pricing policy could also impact Indian exporters. Regulatory scrutiny by the US Food and Drug Administration (USFDA) remains a risk, with potential delays in product launches and increased costs for remediation. Adding to the uncertainty is the recent imposition of 50% tariffs by the US on Indian imports across multiple sectors, effective August 27, 2025, although pharmaceuticals have so far been exempt.
