Chronic care boosts India’s drug sales growth

India's pharmaceutical sector is experiencing a surge in sales growth, driven primarily by the rising demand for chronic care medications, according to an analysis by ET. The industry witnessed a double-digit growth in the last four quarters, with heart conditions, hypertension, and diabetes leading the way. Experts anticipate this trend to persist over the next two to three years.

The uptick in sales contrasts with a slowdown in growth observed during most of 2025, which hovered around 6%-8%. According to PharmaTrac, India's pharmaceutical market grew 12% year-on-year to Rs 70,180 crore in the September quarter, with a growth rate of 11% in the preceding two quarters and 10% during October-December 2025.

The growth in chronic care segments is attributed to better healthcare facilities, increased awareness about health, and a strong demand for multivitamins and supplements. Additionally, the reduction in GST on medicines from 12% to 5% in September last year has contributed to the growth. However, over 60% of the roughly 8,500 small and medium-sized pharma units may face closure due to non-compliance with revised Schedule M provisions of the Drugs and Cosmetic Rules, 1945.

Industry experts attribute the growth to a shift in sales from non-compliant small and medium units to larger players. Notable companies such as Mankind Pharma, Torrent Pharma, and Sun Pharma have reported significant growth in their domestic formulations sales. However, the growth in the pharmaceutical sector is not broadly distributed, as segments like anti-infectives are not showing much growth.