India’s domestic medicine sales rose 12% year on year to ₹70,180 crore in the July–September 2026 quarter, according to PharmaTrac data cited in an Economic Times analysis published on 2 November 2026. It is the fourth straight quarter of double-digit growth for the Indian pharmaceutical market, led by chronic therapies such as cardiac care, diabetes and oncology.

India medicine sales: four quarters of double-digit growth

Growth was 11% in each of the two preceding quarters and 10% in October–December 2025, after hovering at 6–8% for most of 2025. The July–September 2025 quarter grew just 7%.

Monthly data from Pharmarack points the same way. In September 2026 the market grew about 13.5% by value, with volume up about 3.5%, its best in two years, prices up 6.2% and new launches adding 3.8%. By therapy:

• Cardiac, about 14% of the market, grew 17.7% in value, with volumes up 9.1%
• Anti-diabetes rose 16.1%, helped by new GLP-1 generics and oral combinations
• Anti-neoplastics (cancer drugs) grew 21.6%
• Respiratory volumes fell 6.9% as the monsoon receded, and anti-infectives grew only 5.8%

What is driving the growth

Industry leaders point to more diagnosis of chronic disease and the cut in GST on medicines from 12% to 5% in September 2025. Rajiv Juneja, Managing Director of Mankind Pharma, said better access to tests and rising health awareness are lifting demand, including for multivitamins and supplements.

Regulation is also reshaping the market. The Central Drugs Standard Control Organisation (CDSCO) has ordered hundreds of non-compliant small and mid-sized units to close in the past two years, and much of their business may have moved to larger companies that PharmaTrac audits. Many smaller makers have struggled to meet the revised Schedule M manufacturing standards.

Not everyone reads the data as a broad recovery. Amit Bakshi, Managing Director of Eris Lifesciences, said part of the jump may reflect how trade generics and untraceable companies are captured in the data, though he added that these factors could support 2–3 percentage points of structural growth. Systematix analyst Vishal Manchanda said the momentum is concentrated in chronic therapies, noting that Cipla’s 12% India growth would be closer to 6–8% without acquisitions.

How large drugmakers performed

Company results for the quarter match the trend. Sun Pharmaceutical Industries reported India formulation sales of ₹5,552 crore, up 17.3% and 34.5% of its consolidated sales. Torrent Pharma’s domestic revenue rose 20% to ₹2,181 crore, and Mankind Pharma’s quarterly profit rose 38% as chronic therapies lifted domestic growth.

Why it matters for Indian pharma

A strong home market gives drugmakers a cushion while export growth slows. India’s pharma exports rose only 4.9% in H1 FY27 as US shipments softened. Industry experts expect domestic growth to stay high for the next two to three years.

Featured image: A neighbourhood pharmacy in Gangtok, Sikkim. Photo: flowcomm / Wikimedia Commons (CC BY 2.0).

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