By Kiran Mazumdar-Shaw, Chairperson, Biocon Group
India’s pivotal role in global health security has never been more vital, especially in light of the rising healthcare costs that are putting immense pressure on households, governments, insurers, and healthcare providers worldwide.
In 2022, global healthcare spending reached an alarming USD 9.8 trillion, accounting for around 10% of global GDP, according to the World Health Organization (WHO). The escalating costs of medicines are not just a financial burden—they are exacerbating inequities in healthcare access, particularly in developing countries, where life-saving treatments remain out of reach for many.
With global pharmaceutical expenditures on track to rise at a compound annual growth rate (CAGR) of 5-8%, reaching USD 2.3 trillion by 2028, the financial strain on health systems will only intensify. In 2023 alone, global spending on biopharmaceuticals reached USD 1.4 trillion.
The WHO estimates that one-third of the global population lacks access to essential medicines, leading to millions of preventable deaths each year. Without the vital contributions of India’s generics and biosimilars, this crisis would be far more severe. By ensuring the availability, affordability, and accessibility of critical medicines, India plays an indispensable role in securing health for people worldwide.
Strengthening Global Health Security
India’s pharmaceutical industry is a cornerstone of global health security. The global generic drug market was valued at approximately USD 420 billion in 2023 and is expected to exceed USD 600 billion by 2030. As the supplier of 20% of the world’s generic medicines, India is at the forefront of delivering affordable healthcare solutions. Its contributions have been transformative in both developing and developed nations.
For example, India provides 40% of the United States’ generic drug supply and meets 25% of the United Kingdom’s needs. In the U.S., where healthcare costs are among the highest globally, generics and biosimilars have expanded access to essential treatments. In 2023, while generics and biosimilars accounted for 90% of all prescriptions in the U.S., they represented just 18% of total drug spending—underscoring their role in improving access to therapies while curbing costs. Over the last decade, they have saved the U.S. healthcare system more than USD 3 trillion, ensuring essential treatments reach more patients without imposing significant financial burdens.
Leveraging Innovation and Excellence in Manufacturing
India’s strength in the pharmaceutical sector is rooted in its world-class scientific community, cutting-edge manufacturing capabilities, and cost-effective production methods. As the world’s third-largest producer of pharmaceuticals by volume, India exports medicines to more than 200 countries, underlining its role as a global health security partner.
Beyond generics, India has emerged as a leader in biosimilars—affordable alternatives to biologic drugs that treat complex conditions like cancer and autoimmune diseases. The biosimilars market is expected to quadruple by 2030, as patents for originator biologics expire. India’s pharmaceutical companies are spearheading the development of these vital treatments, ensuring that millions of patients worldwide have access to life-saving therapies at a fraction of the cost.
India’s expertise in research and development, particularly in chemistry and biochemistry, also positions the country to be a cost-effective innovator in creating first-in-class novel therapies, including gene and cell-based treatments. The nation’s growing proficiency in genomics, microbiomes, and AI-powered precision medicine is set to drive the next wave of breakthroughs in personalized healthcare.
India: The Vaccine Capital of the World
India’s contribution to global health security is further amplified by its leadership in vaccine production. Known as the “vaccine capital of the world,” India manufactures over 60% of the world’s vaccines, supplying life-saving immunizations to both developed and developing countries. The country’s robust vaccine manufacturing infrastructure, advanced scientific expertise, and cost-effective production processes have enabled it to deliver millions of doses to combat infectious diseases such as polio, measles, and more recently, COVID-19. India’s role in the global vaccine supply chain has been critical in addressing global health emergencies, ensuring that vaccines reach the most vulnerable populations, often at prices far below those charged by other manufacturers. By providing affordable vaccines to countries around the world, India has played a central role in advancing public health and reducing preventable disease outbreaks, cementing its position as a cornerstone of global health security.
India: The Backbone of Global Health Equity
In the face of rising healthcare costs and inequitable access to critical medicines, India’s pharmaceutical sector provides an essential lifeline to millions worldwide. India’s leadership in generics and biosimilars has not only transformed healthcare access but also strengthened the resilience of global supply chains, ensuring the consistent availability of affordable medicines.
The country’s state-of-the-art manufacturing infrastructure, scientific expertise, and thriving research ecosystem make it a key player in driving sustainable healthcare solutions. In FY23-24, India’s pharmaceutical exports grew by nearly 10%, reaching USD 28 billion. The United States remains India’s largest market, importing over 31% of this total, reflecting India’s essential role in meeting global medicinal needs.
The truth is clear: India is not just the “pharmacy of the world”—it is the backbone of a stable, resilient, and equitable global healthcare system.
As the world faces growing health challenges, India’s leadership in pharmaceuticals, coupled with strengthened international collaborations and continued innovation, will ensure health security for all. By widening access to life-saving medicines, promoting health equity, and reinforcing healthcare systems, India is helping build a future where accessible, affordable, and sustainable healthcare is a reality for generations to come.
Published on, The Economic Times
