10 Facts About Prescription Drug Prices India

5. India’s global role — “pharmacy of the world”

India is known internationally as a major supplier of generic medicines and active pharmaceutical ingredients (APIs). Research findings show India produces around 35% of global generic drugs by volume, a share that reflects both industrial capacity and competitive pricing. Large-scale manufacturing enables low per-unit costs, a reason many countries import Indian generics for routine treatments and essential medicines. Indian firms supply vaccines, antibiotics, and many standard generics chained into global health programs. This export role benefits importing countries by lowering healthcare spending and ensuring steady supply lines. For India, exports create industry scale and revenue that can help keep domestic prices moderated. The global footprint also means events affecting Indian production — such as changes in API sourcing or local regulations — can ripple outward, influencing medicine availability and price stability elsewhere.